U.S. markets closed

Top Analyst Reports for Procter & Gamble, AbbVie & QUALCOMM

Sheraz Mian

Tuesday, April 7, 2020

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Procter & Gamble (PG), AbbVie (ABBV) and QUALCOMM (QCOM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Procter & Gamble’s shares have outperformed the Zacks Soap and Cleaning Materials industry over the past six months (-2.6% vs. -5.8%). The Zacks analyst believes that currency fluctuations remain concerning. Nevertheless, gains from acquisitions and divestitures are likely to partly offset the currency headwinds.

The company’s solid second-quarter fiscal 2020 earnings mark the continuation of its positive surprise trend. Further, earnings and sales improved year over year in the reported quarter on gains from productivity efforts, robust volume, favorable mix and pricing. Total productivity cost savings aided core currency-neutral gross and operating margin by 120 bps and 220 bps, respectively.

Further, it delivered adjusted free cash flow productivity of 100%. Backed by strong organic sales growth, core earnings and returns to shareholders in the fiscal second quarter, the company raised its view for fiscal 2020.

(You can read the full research report on Procter & Gamble here >>>)

Shares of AbbVie have lost -9.8% over the past year against the Zacks Large Cap Pharmaceuticals industry’s fall of -1.3%. The Zacks analyst believes that AbbVie’s Humira is performing well, driven by strong demand trends amid new competition. It has been successful in expanding approvals for its cancer drugs, Imbruvica and Venclexta.

The company also has an impressive late-stage pipeline. Its two new drugs, Skyrizi and Rinvoq, were off to a strong start and have with significant potential. The acquisition of Allergan, if successful, should diversify AbbVie’s revenue base and accelerate its non-Humira business.

Sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind. Also, the decline in HCV sales and uncertainty about the coronavirus impact is a concern. Estimates are stable ahead of Q1 earnings. AbbVie has a positive record of earnings surprise in the recent quarters.

(You can read the full research report on AbbVie here >>>)

QUALCOMM’s shares have lost -20% over the past three months against the Zacks Wireless Equipment industry’s fall of -%. The Zacks analyst believes that the company is likely to help users experience seamless transition to super-fast 5G networks, delivering low-power resilient multi-gigabit connectivity with best-in-class security.

Qualcomm is focused on retaining its position in the chipset market and mobile connectivity with several technological achievements and innovative product launches. It offers the flexibility and scalability needed for broad and fast 5G adoption through commercialization by OEMs.

While the company has expanded its leadership to the high tiers with Snapdragon 700, Snapdragon 800 solutions should continue defining the premium tier benchmarks. However, Qualcomm is likely to face softness in demand from China with Huawei gaining prominence in the local market and coronavirus impacting sales.

(You can read the full research report on QUALCOMM here >>>)

Other noteworthy reports we are featuring today include Alphabet (GOOGL), PepsiCo (PEP) and CME Group (CME).

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>

Sheraz Mian

Director of Research

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

P&G's (PG) Productivity & Cost Savings Plan to Aid Margins

AbbVie (ABBV) Pipeline Solid, Skyrizi, Rinvoq Show Potential

Qualcomm (QCOM) Rides on 5G Chipset Innovation & Knowhow

Featured Reports

Alphabet (GOOGL) Rides on Diversification; Legal Troubles Ail

The Zacks analyst believes that Alphabet's strong mobile, focus on cloud, artificial intelligence and Android OS is a positive.

Strength in Snacking Unit Aids PepsiCo (PEP), Cost Hurts

Per the Zacks analyst, PepsiCo is gaining from its impressive snacks business which is likely to boost its top line growth.

CME Group (CME) Rides on Futures Products, Expenses Hurt

Per the Zacks analyst, expansion of futures products in emerging markets and OTC offerings poise the company well for growth.

AMD Banks on Strength in Product Portfolio Amid Competition

Per the Zacks analyst, Advanced Micro Devices is benefiting from robust adoption of latest EYPC, Ryzen and Radeon processors.

Strategic Buyouts Aid, High Costs Hurt HCA Healthcare (HCA)

Per the Zacks analyst, a number of strategic acquisitions have led to an increase in patient volumes and added hospitals to its portfolio.

Automation Solutions Drives Emerson (EMR), High Costs Hurts

Per the Zacks analyst, solid traction of Emerson's Automation Solutions segment will drive its sales.

Digital Innovations Aid TD Ameritrade (AMTD), High Cost Ails

Per Zacks analyst, TD Ameritrade's improved digital platforms have helped it witness higher client activities, thus aiding revenues.

New Upgrades

Electronic Arts (EA) Benefits From Solid Gaming Portfolio

Per the Zacks analyst, Electronic Arts' top line benefits from a burgeoning user base on the back of a sturdy gaming portfolio.

Sunlight Buyout, Hawthorne Unit Aid Scotts Miracle-Gro (SMG)

Per the Zacks analyst, Scotts Miracle-Gro should gain from the synergies of the Sunlight Supply acquisition and strong growth prospects in its Hawthorne unit.

Hain Celestial's (HAIN) Transformation Strategy Looks Good

Per the Zacks analyst, Hain Celestial's transformation strategy, aimed at simplifying portfolio, enhancing margins and improving cash flows, bodes well. Also, its Project Terra initiative looks good.

New Downgrades

Coronavirus Crisis to Hurt Las Vegas Sands (LVS) Performance

Per the Zacks analyst, Las Vegas Sands' results in the coming quarters will be impacted by coronavirus.

ManpowerGroup (MAN) Grapples With Staffing Margin Pressure

The Zacks analyst believes that staffing margin pressure, resulting from loss of competitiveness, employment subsidy and impact of the strikes in France, will weigh on ManpowerGroup's bottom line.

Dycom (DY) Hurt by Higher Cost of Large Customer Program

Per the Zacks analyst, higher-than-expected cost of a large customer program, adverse weather and greater seasonal effects have been weighing on Dycom's margins.

undefined undefined
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
CME Group Inc. (CME) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research