The Zacks Analyst Blog Highlights Merck, Equinor, Illinois Tool Works, Arthur J. Gallagher and Atlassian
For Immediate Release
Chicago, IL – December 12, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Merck & Co., Inc. MRK, Equinor ASA EQNR, Illinois Tool Works Inc. ITW, Arthur J. Gallagher & Co. AJG and Atlassian Corp. TEAM.
Here are highlights from Monday’s Analyst Blog:
Top Research Reports for Merck, Equinor and Illinois Tool Works
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 Merck & Co., Inc., Equinor ASA and Illinois Tool Works Inc.. 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 Merck have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-2.2% vs. +7.3%). The company is witnessing generic competition for several drugs and rising competitive pressure, mainly on the diabetes franchise, will continue to be overhangs on the top line. There are concerns about Merck's ability to grow its non-oncology business ahead of Keytruda's loss of exclusivity later in the decade.
Nevertheless, Merck's products like Keytruda and Gardasil have been driving sales. With continued label expansion into new indications, particularly earlier-stage launches, Keytruda is expected to remain a key top-line driver.
Animal health and vaccine products are core growth drivers. Merck boasts a strong cancer pipeline, including Keytruda, which should drive long-term growth. Merck is investing in M&A activity to strengthen its pipeline.
(You can read the full research report on Merck here >>>)
Shares of Equinor have gained +11.5% over the past six months against the Zacks Oil and Gas - Refining and Marketing industry's gain of +16.7%. This integrated energy company has a global footprint spanning across more than 30 countries. In Europe, it ranks as the second-largest supplier of natural gas. It is proactively directing investments into renewable energy projects to tackle the issues posed by climate change.
Equinor anticipates a significant expansion of its renewable production capabilities, targeting a range of 4-6 GW by 2026, with further ambitions to elevate this capacity to 12-16 GW by 2035.
However, its balance sheet has a notable level of debt exposure compared with industry peers, which could potentially affect its financial flexibility. The company also reported weak third-quarter earnings due to reduced production volumes and lower prices of liquids and gas in Norway. Its ambitious capital budget poses a challenge. As such, the stock warrants a cautious stance.
(You can read the full research report on Equinor here >>>)
Shares of Illinois Tool Works have outperformed the Zacks Manufacturing - General Industrial industry over the past year (+13.9% vs. +13.7%). The company is benefiting from improving supply chains and underlying demand. Strength in the Automotive OEM segment, driven by favorable customer mix and product line simplification activities is aiding the company's performance.
Decreasing cost of sales and enterprise initiatives are supporting Illinois Tool's margin performance. The company's efforts to add shareholder value are encouraging. However, persistent weakness in the Test & Measurement and Electronics segment due to softness in semiconductor-related business in the North American region is concerning.
The decline in the specialty films, consumer packaging, specialty films and strength films businesses within the Specialty Products segment is an added woe. Given Illinois Tool's international presence, foreign currency headwinds are weighing on its top line.
(You can read the full research report on Illinois Tool Works here >>>)
Other noteworthy reports we are featuring today include Arthur J. Gallagher & Co and Atlassian Corp.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
