Top Research Reports for Visa, AbbVie & BHP
Thursday, October 19, 2023
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 Visa Inc. (V), AbbVie Inc. (ABBV) and BHP Group Limited (BHP). 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 >>>
Visa shares have outperformed the Zacks Financial Transaction Services industry over the past year (+27.9% vs. +21.7%). The company’s numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues.
Constant investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon for Visa. The company's steady domestic volumes and transactions rise will aid its overall performance. A strong cash position enables it to boost shareholder value.
However, high operating expenses stress its margins. Ramped-up client incentives will dent the top line. Its volumes are likely to see diminishing effects of the Russia-Ukraine conflict. As such, this stock warrants a cautious stance.
(You can read the full research report on Visa here >>>)
Shares of AbbVie have gained +8.7% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +27.8%. The company has several new drugs in its portfolio that have the potential to drive the top line to make up for lost Humira revenues. Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval in new indications.
It has several early/mid-stage candidates that have blockbuster potential. However, there are concerns about long-term sales growth since Humira generics have entered the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales.
Slowing consumer demand due to economic pressure is hurting the aesthetics franchise’s sales. Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025. Estimate movements have been mixed ahead of Q3 results. ABBV reported impressive earnings surprise in recent quarters.
(You can read the full research report on AbbVie here >>>)
Shares of BHP have gained +25.4% over the past year against the Zacks Mining - Miscellaneous industry’s gain of +26.7%. Iron ore prices had earlier lost steam on weak demand in China. Hopes of a pickup in demand in China, owing to a fresh round of stimulus measures for new infrastructure projects, helped lift up prices lately.
Going forward, iron ore prices will be supported by demand in the automotive sector, infrastructure and housing market. Copper and nickel prices will be fueled by demand for electric vehicles.
BHP’s investment in projects with a focus on future--facing commodities like copper, nickel and potash will aid growth. Efforts to make operations more efficient through technology will drive earnings.
(You can read the full research report on BHP here >>>)
Other noteworthy reports we are featuring today include Caterpillar Inc. (CAT), The Boeing Company (BA) and Boston Scientific Corporation (BSX).
Director of Research
Sheraz Mian
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
Visa (V) Rides On Growing Cross Border Volume, Expenses High
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth
Investments to Drive BHP Group (BHP) Amid Price Volatility
Featured Reports
Caterpillar (CAT) Rides on Strong Demand in End Markets
Per the Zacks analyst, solid backlog, improving end-market demand and focus on making strategic investments in expanded offerings, services and digital initiatives will drive Caterpillar's results.
Military Business Aids Boeing (BA), 787 Program Issue Woes
Per the Zacks analyst, Boeing boasts a solid $2.8 trillion market opportunity for its defense unit. Yet, it has been incurring abnormal costs due to production quality issues for its 787 program
Strategic Buyout Aid Boston Scientific (BSX), Forex Woes Ail
Per Zacks analyst, Boston Scientific's Apollo Endosurgery buyout advances company's leadership strategy within the growing area of endoluminal surgery. Yet, foreign exchange woes remain a concern.
Colgate's (CL) Higher Pricing & Productivity Aid Margins
Per the Zacks analyst, Colgate's strong pricing, benefits of funding growth and other productivity plans, are aiding gross margin. It expects continued adjusted gross margin growth in FY23.
Halliburton (HAL) to Benefit from North American Exposure
The Zacks analyst believes that Halliburton can take advantage of the tight fundamentals of the North American land drilling space through its market-leading pressure pumping operations.
AZUL Benefits From Surge in Travel Demand Amid Debt Woes
The Zacks Analyst believes that upbeat air-travel demand benefits AZUL. However, high debt does not bode well for its bottom line.
Loan Growth Supports First Horizon (FHN), High Cost a Woe
The Zacks Analyst believes that a premier regional franchise and robust commercial banking capabilities have helped First Horizon witness loan and deposits growth. Yet, high expenses remain a headwind
New Upgrades
Wix.com (WIX) Benefits From Diversified Product Portfolio
Per the Zacks analyst, Wix's performance is gaining from robust uptake of Wix Studio and other new artificial intelligence applications. Increasing B2B partnerships is a tailwind.
Brand Strength to Drive Abercrombie & Fitch's (ANF) Top Line
Per the Zacks analyst, Abercrombie & Fitch is gaining from continued strength in the Abercrombie brand and sequential improvement in the Hollister brand. It expects FY23 sales growth of 10%.
Omnicell (OMCL) Rides on Advanced Services, Cost Cut Actions
The Zacks analyst is impressed with Omnicell's execution of go-to-market strategy for the recent acquisitions and customer wins in Advanced Services. Also, prudent cost management aids growth.
New Downgrades
Soft Product Shipment & Higher Costs to Hurt Dolby (DLB)
Per the Zacks analyst, Dolby's performance is affected by lower shipments in PC and consumer electronics. Also, rising operating expenses is an added concern.
Weak Cutting & Marking Hurts IPG Photonics' (IPGP) Prospects
Per the Zacks analyst, IPG Photonics is expected to suffer from weakness in cutting and marking applications amid challenging macroeconomic conditions and stiff competition.
Weak Demand & High Costs Hurt Mohawk (MHK) Performance
Per the Zacks analyst, softening demand due to reduced consumer spending and low production in Europe have been hurting Mohawk. Also, uncertain macro environment and high costs are a headwind.
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The Boeing Company (BA) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
