Top Stock Reports for Visa, Novo Nordisk & Medtronic
Tuesday, August 15, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Visa Inc. (V), Novo Nordisk A/S (NVO) and Medtronic plc (MDT). 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 modestly outperformed rival Mastercard this year (+15.8% vs. +13.8%), but somewhat lagged the S&P 500 index (+15.8% vs. +18.4%). The stock has done better than the equal-weighted version of index, given the strong performance of a few megacap Tech stocks.
The company’s numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues. For fiscal 2023, our estimate for revenues indicates almost 11.1% year-over-year growth.
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. Steady domestic volumes and transactions rise will aid its overall performance. It reported solid fiscal third-quarter results thanks to higher cross-border volumes. 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, it warrants a cautious stance.
(You can read the full research report on Visa here >>>)
Shares of Novo Nordisk have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+71.3% vs. +22.7%). The company has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the market. Saxenda and Wegovy sales have been gaining momentum.
Label expansions of diabetes and obesity care drugs are likely to further boost sales. Novo Nordisk raised its 2023 view along with its second-quarter results, expecting better sales of its GLP-1 diabetes products. Its diversifying efforts to develop new treatments are encouraging.
However, competition is getting stiffer from pharma bigwigs like Pfizer, who are likely to eat away from Novo Nordisk’s Diabetes care market share. Patent expiry and pricing pressure across the diabetes market also remain a woe.
(You can read the full research report on Novo Nordisk here >>>)
Medtronic shares have outperformed the Zacks Medical - Products industry over the past six months (+0.4% vs. -1.9%). The company is strategically expanding its global presence to address the unmet demand for advanced medical technologies. Within Cardiovascular, Medtronic is gaining market share, banking on product launches.
Within MedSurg, Medtronic is scaling production of Hugo RAS. Innovations and market expansion efforts are helping it offset the impact of the inflation and supply disruptions.
However, strong liquidity position should allow it to meet its near-term debt obligations. All these factors support our bullish stance on the stock.
(You can read the full research report on Medtronic here >>>)
Other noteworthy reports we are featuring today include Shopify Inc. (SHOP), Colgate-Palmolive Company (CL) and Amphenol Corporation (APH).
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
Ozempic & Wegovy Boost Novo Nordisk's (NVO) Sales, Rivalry A Woe
Medtronic (MDT) Thrives on Medical Surgical Portfolio Growth
Featured Reports
Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)
Per the Zacks analyst, Shopify is benefiting from products like Shopify Shipping, Shopify Payments and Shopify Capital solutions. New merchant friendly applications are also driving growth.
Robust Pet Unit & Pricing Plans Aids Colgate's (CL) Sales
Per the Zacks analyst, Colgate has been gaining from strength in pet unit, revenue growth management and pricing actions. This led to Q2 organic sales growth of 8% for the 18th successive quarter.
End-Market Strength & Diversification Aids Amphenol (APH)
Per the Zacks analyst, Amphenol benefits from commercial air, military, industrial and automotive end-market demand. Diversified business model also lowers volatility of individual geographies.
Alcon's (ALC) Vision Care Arm Gains Strength, FX Woes Stay
The Zacks analyst is impressed with Alcon's share win driven by new toric product launches in contact lenses, including Precision1, Total30 and Dailies Total1. Yet, rising FX headwinds hurt top-line.
Nokia (NOK) Rides on Portfolio Strength, Rapid 5G Expansion
Per the Zacks analyst, Nokia will likely gain from ongoing 5G expansion in India, healthy traction in the Optical Networks business and overall portfolio strength backed by rapid innovation.
New Upgrades
Expanding Diagnosis & Treatment Portfolio Aids Philips (PHG)
Per the Zacks analyst, Philips continues to benefit from growing Diagnosis & Treatment business on the back of partnerships, expanding geographical coverage and innovative solutions.
ITT to Benefit from Strength in Industrial Process Segment
Per the Zacks analyst, ITT's Industrial Process unit is driven by robust demand for parts and services in the aftermarket business. The company's shareholder friendly measures are encouraging.
New Downgrades
High Funding Costs, Weak Asset Quality Hurt KeyCorp (KEY)
Per the Zacks analyst, high funding costs are expected to weigh on KeyCorp's net interest income growth in the near-term. Also, poor asset quality on worsening economic backdrop is concerning.
Competition, Higher Expenses to Hurt OUTFRONT Media (OUT)
Per the Zacks Analyst, stiff competition from several advertising channels and rising costs due to an inflationary and high-interest rate environment pose a bleak near-term outlook for OUTFRONT Media.
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Visa Inc. (V) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
Amphenol Corporation (APH) : Free Stock Analysis Report
Colgate-Palmolive Company (CL) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
