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The Zacks Analyst Blog Highlights: Novo Nordisk, International Business Machines, Honeywell International, Amgen and S&P Global

Zacks Equity Research

For Immediate Release

Chicago, IL – June 1, 2020 – 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: Novo Nordisk NVO, International Business Machines IBM, Honeywell International HON, Amgen AMGN and S&P Global SPGI.

Here are highlights from Friday’s Analyst Blog:

Top Stock Reports for Novo Nordisk, IBM and Honeywell

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 Novo Nordisk, International Business Machines and Honeywell International. 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 >>>

Novo Nordisk’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+37.7% vs. +11.4%). The Zacks analyst believes that lower realized prices in the Unites States, loss of exclusivity for products in hormone replacement therapy and intensifying competition will impact sales. Moreover, the impact of COVID-19 will affect the performance in the upcoming quarters.

Novo Nordisk beats on both first-quarter earnings and sales. Ryzodeg continues to gain traction and Ozempic, a once-weekly GLP-1, is off to a solid start. The label of Ozempic was further expanded by the FDA to include a cardiovascular indication.

Novo Nordisk has one of the broadest diabetes portfolios in the industry. Tresiba, Victoza, Ozempic, Xultophy and Saxenda maintain momentum for the company. Label expansion of existing drugs will further boost sales for the company.

Shares of IBM have lost -6.3% over the past six months against the S&P 500’s fall of -2.6%. The Zacks analyst believes that IBM is benefiting from improving position in the hosted cloud, security and analytics domains.

Moreover, Red Hat acquisition has helped IBM to enhance containerized software capabilities and strengthen competitive position in the hybrid cloud market. Further, growing clout of Watson Health and growth in Payer, Provider, Imaging and Life Sciences verticals are noteworthy. Also, gains from z15 hold promise.

However, stiff competition in the cloud computing market remains a woe. Notably, adoption of cognitive applications and transaction processing platforms in March was affected by coronavirus outbreak, which is a major concern. For 2020, IBM has withdrawn guidance, citing uncertainty pertaining to coronavirus crisis. Also, a highly leveraged balance sheet, adds to the risks.

Honeywell’s shares have lost -10.2% over the past three months against the Zacks Diversified Operations industry’s fall of -11.2%. The Zacks analyst believes that strength in defense and space businesses as well as solid demand for its warehouse automation products will likely boost Honeywell’s revenues in the quarters ahead.

Also, increased productivity and operational excellence initiatives are likely to improve the company’s near-term profitability. Its acquisitions will likely prove beneficial in the quarters ahead. It is committed to rewarding shareholders handsomely through share repurchases and dividend payouts.

The company believes that the coronavirus outbreak-led market downturn and the volatile oil market will adversely impact its near-term results. Given its extensive geographic presence, its business is subject to political, economic and geopolitical issues. Rise in debt levels can increase its financial obligations.  

Other noteworthy reports we are featuring today include Amgen and S&P Global.

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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/performancefor information about the performance numbers displayed in this press release.


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International Business Machines Corporation (IBM) : Free Stock Analysis Report
 
Novo Nordisk AS (NVO) : Free Stock Analysis Report
 
Honeywell International Inc. (HON) : Free Stock Analysis Report
 
Amgen Inc. (AMGN) : Free Stock Analysis Report
 
SP Global Inc. (SPGI) : Free Stock Analysis Report
 
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