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Top Stock Reports for Facebook, Netflix & AbbVie

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Sheraz Mian
·7 min read
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Wednesday, December 2, 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 Facebook, Inc. (FB), Netflix, Inc. (NFLX) and AbbVie Inc. (ABBV). 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 >>>

Facebook shares have outperformed the Zacks Internet – Services industry in the year-to-date period (+39.6% vs. +35.8%) on the back of steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger and Facebook Watch is a major growth driver.

The company expects ad-revenue growth on a year-over-year basis to be better than the third quarter’s growth rate, driven by continued strong advertiser demand during the holiday season. Strong demand for Oculus 2 is expected to boost other revenues.

However, changes made by Apple and Google in their mobile operating systems and browser platforms have limited Facebook’s ability to track user-activity trend, which is a headwind.

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

Netflix shares have gained +55.9% in the year-to-date period against the Zacks Broadcast Radio and Television industry’s rise of +25.8%. The Zacks analyst believes that the company is dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content and an expanding international footprint. Third-quarter results reflected that Netflix’s low-priced mobile plans in India, Indonesia, Malaysia, Philippines and Thailand is helping it win users in Asia-Pacific, which is a positive for its prospects.

But Netflix, in third-quarter 2020, witnessed decline in paid-user addition rate, reflecting lower demand for content. Additionally, rising competition from Apple, Amazon, HBO Max, Disney+, Peacock and TikTok is a major headwind.

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

AbbVie shares have gained +17.5% in the year-to-date period against the Zacks Large Cap Pharmaceuticals industry’s rise of +1.4%. The Zacks analyst believes that the company’s key drug, Humira continues to see strong demand trends in the United States. AbbVie has been successful in expanding labels of its cancer drugs, Imbruvica and Venclexta. It has an impressive late-stage pipeline. Its two new immunology drugs Skyrizi and Rinvoq, have been performing beyond expectations in 2020.

Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential. AbbVie’s shares have outperformed the industry this year so far.

However, sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind. Also, the decline in HCV drug Mavyret’s sales is a concern.

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

Other noteworthy reports we are featuring today include Amgen Inc. (AMGN), American Airlines Group Inc. (AAL) and Micron Technology, Inc. (MU).

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

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

Expanding User Base, Instagram Strength Aid Facebook (FB)

Robust Content Aids Netflix (NFLX) Amid Stiff Competition

AbbVie (ABBV) U.S. Humira Demand Solid, Skyrizi, Rinvoq Shine

Featured Reports

Amgen (AMGN) Rides on Solid Pipeline and Regular Deals

Amgen expects several important data readouts from its pipeline in the near term. It also pursues external opportunities as evident from the purchase of Otezla and the stake in China's BeiGene.

Production Growth Aids PetroChina (PTR) Amid Refining Woes

The Zacks analyst believes oil production growth and lower lifting costs should aid PetroChina's upstream unit outlook but is worried over the weak refined products margin.

Low Fuel Costs Aid American Airlines (AAL) Amid Revenue Woes

The Zacks analyst believes that low fuel costs (down 25.4% in the first nine months of 2020) are providing a cushion to the company against its coronavirus-induced tepid top line.

Diverse Customer Base Aids Adient (ADNT) Amid High Debt

While diverse geographical mix and solid backlog are likely to fuel Adient's top line, the Zacks analyst remains concerned of the firm's elevated leverage of around 73%.

Increasing Transaction Fees Aids Cboe Global Market (CBOE)

Per the Zacks analyst, Cboe Global is set to grow on increasing transaction fees driven by trading volume growth given strength in its proprietary products.

Gaming Demand Aid Hasbro (HAS) Amid Soft International Sales

Per the Zacks analyst, strong gaming demand and increased focus on eOne content likely to drive Hasbro performance.

Micron (MU) Benefits from Growing Memory-Chip Demand

Per the Zacks analyst, Micron is growing on solid memory-chip demand from PC manufacturers and data-center operators as the coronavirus-led lockdown has boosted the work-and-learn-from-home trend.

New Upgrades

Improvement in Margins Continue to Aid PerkinElmer (PKI)

Per the Zacks analyst, improving gross and operating margins mainly owing to productivity initiatives and volume leverage continue to favor PerkinElmer.

Generac (GNRC) Rides on Healthy Growth Dynamics, Demand Pull

Per the Zacks analyst, Generac is likely to continue its growth momentum driven by the radical changes in the energy landscape, abundance of natural gas, aging power infrastructure and 5G deployment.

Strong Demand Environment Aids A. O. Smith Corporation (AOS)

Per the Zacks analyst, strength in A. O. Smith's North America segment, driven by robust demand for water treatment and residential water heater products in the United States will lend momentum to it.

New Downgrades

Rising Cost Impact LendingTree's (TREE) Bottom-line Growth

Per the Zacks analyst, LendingTree's bottom-line remains under pressure due to persistent rise in expenses on account of investments in product development, and advertising-related costs.

Sanderson Farms (SAFM) Troubled by Soft Foodservice Demand

Per the Zacks analyst, Sanderson Farms is troubled by pandemic-led hurdles like low foodservice demand due to closure of various away from home channels. Also, export markets have been under pressure.

Merger Termination, Stiff Competition Hurts Embraer (ERJ)

Per the Zacks analyst, the termination of a $4.2-billion deal with Boeing may have widespread implications on its operations. It also faces stiff market competition due to peer price pressure.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
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