Top Research Reports for Sanofi, IBM & Deere
Tuesday, January 11, 2022
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 Sanofi (SNY), International Business Machines Corporation (IBM), and Deere & Company (DE). 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 >>>
Shares of Sanofi have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+9.4% vs. +22.2%), but things seem to improving for it. The Zacks analyst believes that Dupixent has become the key top-line driver for Sanofi. With multiple approvals for new indications expected in the near future, its sales are expected to increase.
Several data read-outs are also expected in 2022. Sanofi has launched several new drugs in the past couple of years and is expanding its pipeline through M&A deals. Weak performance of the Diabetes unit, generic competition for many of its drugs, and COVID-19 woes remain as the major headwinds, though.
(You can read the full research report on Sanofi here >>>)
IBM shares have gained +2% over the past three months against the S&P 500’s gain of +7.3%. IBM’s last quarterly report reflected year-over-year decline in earnings and muted revenue growth. Stiff competition in the cloud computing and higher debt are some of its major concerns.
The Zacks analyst, however, believes that steady demand for IBM’s hybrid cloud business is a major catalyst for growth. IBM is poised to gain from the spin-off of legacy infrastructure services business while it focuses on the hybrid cloud strategy. A healthy uptake of IBM’s blockchain, security and other digital transformation offerings bode well in the long term.
(You can read the full research report on IBM here >>>)
Shares of Deere have gained +7.8% in the last six months against the Zacks Farm Equipment industry’s gain of +5.9%. The Zacks analyst believes that demand in agricultural and construction sectors, expansion in precision agriculture, and its margin improvement plan will aid Deere's results.
The ongoing rally in commodity prices is likely to continue fueling demand for agricultural equipment. The need to upgrade old equipment and the demand that is created subsequently will also support Deere's revenues. DE is likely to benefit from growth in non-residential investment and strong order activity from independent rental companies.
(You can read the full research report on Deere here >>>)
Other noteworthy reports we are featuring today include Altria Group, Inc. (MO), Petrobras (PBR) and Snap Inc. (SNAP).
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
Sanofi (SNY) Boasts a Solid & Expanding Pipeline
IBM Gains From Investments to Expand its Business Portfolio
Deere (DE) Strong on Farm Equipment Demand Amid Cost Woes
Featured Reports
Altria (MO) Gains on Robust Pricing, Oral Tobacco Products
Per the Zacks analyst, Altria's adjusted operating companies income has been gaining from strong pricing power.
Pre-Salt Reserves Boosts Petrobras (PBR), Debt Pile Hurts
Petrobras' stakes in Brazil's attractive pre-salt oil reservoirs should boost its earnings outlook. However, the Zacks analyst is concerned about the company's massive debt load of $53.3 billion.
Solid User Growth & Premium Content Demand Aids Snap (SNAP)
Per the Zacks analyst, Snap benefits from an improving user growth driven by strong adoption of Augmented Reality (AR) Lenses and demand for premium Discover content and Shows.
Solid Product Suite, Cost Efficiency Program Aid Ecolab (ECL)
The Zacks analyst is upbeat about Ecolab's solid product portfolio on the back of several product launches. The company's expansion of the Ecolab Efficiency Initiative also raises optimism.
Robust Digital Sales Aid Yum! Brands (YUM), Debt High
Per the Zacks analyst, Yum! Brands benefits from robust digitalization. During third-quarter 2021, the company reported digital sales of over $5 billion.
Investments Aid Ameren (AEE), High Emission Expenses Woe
Per the Zacks analyst, systematic investment in infrastructure projects boosts Ameren's growth.
Investments Aid Entergy (ETR), Storm Restoration Costs Woe
Per the Zacks analyst, Entergy's systematic investments are expected to boost its grid upgrades and thereby, customer reliability.
New Upgrades
Strength in Namesake Brand to Aid Crocs (CROX) Top Line
Per the Zacks analyst, Crocs' top line has been gaining from strength in the Crocs brand. The company remains optimistic about the demand for the Crocs brand, targeting revenues of $5 billion by 2026.
Solid Insurance in Force, Persistency Drive Radian (RDN)
Per the Zacks analyst, Radian is poised to grow given solid persistency and rise in new mortgage insurance business driving insurance in force, declining delinquency, and lower level of claims paid.
Strength Across End Markets to Benefit MRC Global (MRC)
Per the Zacks analyst, lucrative project wins across several sectors, including gas utility, downstream, industrial, and energy transition, is expected to lend momentum to MRC Global.
New Downgrades
Recent Setbacks & Fierce Rivalry Weighs on Novo Nordisk (NVO)
Per the Zacks analyst, the patent expiry on some of the products in Novo Nordisk's portfolio is highly concerning. The recent setback related to supply challenges for Wegovy also hurt the stock.
Pioneer (PXD) Suffers From High Oil & Gas Production Costs
The Zacks analyst is worried about Pioneer's rising costs associated with oil and gas production, which will continue to hurt its bottom line amid increased activities.
Omicron-Led Labor Crunch, High Costs Hit Alaska Air (ALK)
The Zacks analyst is worried about operational disruptions following multiple flight cancellations due to staff shortage and foul weather. Steep fuel costs are concerning too.
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Sanofi (SNY) : Free Stock Analysis Report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Petroleo Brasileiro S.A. Petrobras (PBR) : Free Stock Analysis Report
Altria Group, Inc. (MO) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Snap Inc. (SNAP) : Free Stock Analysis Report
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