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Top Stock Reports for Novartis, QUALCOMM & Accenture

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Sheraz Mian
·6 min read
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Wednesday, January 20, 2021

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 Novartis (NVS), QUALCOMM (QCOM) and Accenture (ACN). 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 >>>

Novartis shares have underperformed the Zacks Large-Cap Pharmaceuticals industry over the past year (+1.4% vs. +6%). The Zacks analyst believes that new launches like Piqray, Mayzent and Beovu should boost sales. The biosimilars portfolio also gains traction with new approvals and should drive growth.

However, Sandoz’s generics business has been soft. Moreover, pipeline setbacks and generic competition for key drugs weigh on the performance. Meanwhile, Novartis’ performance in 2020 was pretty ho-hum as sales were hit by the coronavirus pandemic.

In particular, dermatology, ophthalmology and Sandoz retail businesses were affected. On a positive note, cardiovascular Entresto maintained momentum on increased patient share across markets, although arthritis drug Cosentyx’s sales were soft. Contributions from Kisqali and gene therapy, Zolgensma, have boosted the performance.

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

Shares of QUALCOMM have gained +80.1% in the last six months against the Zacks Wireless Equipment industry’s gain of +41.5%. The Zacks analyst believes that Qualcomm is benefiting from investments toward building a licensing program in mobile. The company is focused on retaining its leadership in the 5G chipset market and mobile connectivity.

It resolved a dispute with Huawei and inked a new long-term patent license agreement, which augurs well for long-term revenues. Qualcomm launched low-priced 5G chips for the masses for a seamless transition to 5G while delivering low-power resilient multi-gigabit connectivity.

However, lower handset shipments due to the COVID-19 pandemic remain a near-term headwind. Qualcomm is expected to face softness in demand from China. Over the past years, the company’s margins have declined due to high operating and research and development expenses. Competition from low-cost chip manufacturers like MediaTek is another concern.

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

Accenture shares have gained +10.5% over the past three months against the Zacks Consulting industry’s rise of +13%. The Zacks analyst believes that the company has been steadily gaining traction in its outsourcing and consulting businesses.

It has been strategically enhancing its cloud and digital marketing suite through acquisitions and partnerships. The company’s strong operating cash flow has helped it reward its shareholders in the form of dividends and share repurchases as well as pursue opportunities in areas that show true potential.

However, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes it to foreign currency exchange rate fluctuations. Buyout-related integration risks continue to remain a concern.

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

Other noteworthy reports we are featuring today include AbbVie (ABBV), MetLife (MET) and Electronic Arts (EA).

Breakout Biotech Stocks with Triple-Digit Profit Potential

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Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

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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

New Drugs Fuel Novartis (NVS) Amid Coronavirus Slowdown

Qualcomm (QCOM) Rides on Solid Momentum in 5G Chipset Market

Accenture (ACN) Benefits From Buyouts Amid High Talent Costs

Featured Reports

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

AbbVie's key drug, Humira is seeing strong demand in the United States while generics are eroding ex-U.S. sales.

Cost-Control Efforts & Solid Balance Sheet Aid MetLife (MET)

Per the Zacks analyst, strategic initiatives have enabled the company to control costs, which is driving margins.

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.

EOG Resources (EOG) Banks on Oil-Rich Eagle Ford Acreage

The Zacks analyst agrees that EOG Resources will gain from the identification of 1,900 undrilled premium oil wells in the Eagle Ford.

Robust Marketplace Activities & Services Benefit Etsy (ETSY)

Per the Zacks analyst, Etsy is gaining from solid momentum across buyers and robust ad program, which are driving growth in its marketplace and services revenues, respectively.

Low Fuel Costs Boost Delta (DAL), Passenger Revenues Bother

The Zacks analyst is worried about the coronavirus-led sharp decline in passenger revenues (down 70% in 2020). However, reduction in fuel price per gallon (down 18% in 2020) offers some relief.

Cerner (CERN) Rides on EHR & EMRs, Margin Contraction a Woe

Per the Zacks analyst, Cerner continues to benefit from its lucrative HER & EMR platforms. But operating margin contraction remains a concern.

New Upgrades

Winnebago (WGO) to Ride on Newmar Buyout & Strong Financials

Significant synergy realizations from Newmar buyout along with healthy balance sheet with low leverage have made the Zacks analyst bullish on Winnebago.

Cost Control & Strategic Acquisitions To Aid Navient (NAVI)

Per the Zacks analyst, Navient's efforts to drive operational efficiency through cost-control measures is encouraging. Also, the company is focused on growth opportunities to boost overall business.

NuStar Energy's (NS) Permian Exposure to Spur Growth

The Zacks analyst believes that NuStar's oil pipeline network in the prolific Permian Basin is expected to drive meaningful revenue upside given the region's attractive production growth.

New Downgrades

Corcept's (CORT) High Reliance On Korlym for Revenues a Woe

Per the Zacks analyst, Corcept is solely dependent on Cushing's syndrome drug, Korlym for revenues which is a concern.

Stiff Competition & Rising Costs Hurts Standard Motors (SMP)

Tough competition in every market served by Standard Motors is a lingering concern for the firm. Rising research and development costs will also dent the firm's bottom line, per the Zacks analyst.

Urban Portfolio Skew, Adverse Legislatives Ail Aimco (AIV)

Per the Zacks Analyst, urban footprints of Aimco are likely seeing occupancy and rent declines. Also, disadvantageous rent setting is expected to exacerbate the recovery of unpaid rent.

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
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Novartis AG (NVS) : Free Stock Analysis Report
MetLife, Inc. (MET) : Free Stock Analysis Report
Electronic Arts Inc. (EA) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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