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The Zacks Analyst Blog Highlights: SAP, AbbVie, Sinopec, Cigna and Intuitive Surgical

Zacks Equity Research

For Immediate Release

Chicago, IL –December 24, 2019 – 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: SAP SE SAP, AbbVie ABBV, Sinopec SNP, Cigna CI and Intuitive Surgical ISRG.

Here are highlights from Monday’s Analyst Blog:

Top Stock Reports for SAP, AbbVie and Sinopec

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 SAP SE, AbbVie and Sinopec. 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 >>>

SAP’s shares have underperformed the Zacks Computer Software industry year to date (+35% vs. +44.2%). The Zacks analyst believes that SAP is benefiting from strong growth in cloud and software revenues, and expanding customer base.

Robust adoption of S/4HANA, C/4HANA, Fieldglass, Concur and SuccessFactors Employee Central solutions hold promise. Further, SAP's alliances with Microsoft, Accenture and Verizon favor business prospects. Moreover, synergies from Qualtrics acquisition are enabling SAP to bolster Customer Experience segment revenues.

Additionally, strong demand for the company’s Intelligent Spend offerings among enterprises holds promise. Nonetheless, integration risks related to acquisitions are likely to limit margin expansion. Moreover, increasing investments to enhance cloud-based offerings are anticipated to weigh on bottom-line growth at least in the near term.

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

Shares of AbbVie have gained +22.4% in the past three months against the Zacks Large-Cap Pharmaceuticals industry’s rise of +12%. The Zacks analyst believes that AbbVie’s Humira is performing well driven by strong demand trends amid new competition. Imbruvica has multibillion-dollar potential.

AbbVie has been successful in expanding approvals for its cancer drugs, Imbruvica and Venclexta. It also has an impressive late-stage pipeline. It gained approvals for two new drugs with significant potential, Skyrizi (risankizumab) and Rinvoq this year. Both are off to a strong start. The acquisition of Allergan, if successful, should diversify AbbVie’s revenue base and accelerate its non-Humira business.

However, AbbVie’s shares have underperformed the industry this year so far. Sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind. Also, the decline in HCV sales is a concern.

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

Sinopec's shares have lost -13% over the past six months against the Zacks Integrated Oil industry's decline of -5%. The Zacks analyst believes that the company has made major progress in identifying economically-viable oil & gas reserves. A huge scale of prospective new reserves was discovered in a number of prolific oil and gas resources like Sichuan Basin and Jiyang Depression.

Sinopec is among the largest integrated energy players in China, with significant presence in upstream, midstream and downstream businesses. Notably, Sinopec’s natural gas business has immense potential for growth over the coming years as China intends to move from coal to natural gas.

However, China’s bleak economic outlook will continue to hurt the firm’s refining business. With declining demand for oil products, the firm’s massive refining operations are likely to make lower contributions to earnings.

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

Other noteworthy reports we are featuring today include Cigna and Intuitive Surgical.

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


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China Petroleum & Chemical Corporation (SNP) : Free Stock Analysis Report
 
AbbVie Inc. (ABBV) : Free Stock Analysis Report
 
SAP SE (SAP) : Free Stock Analysis Report
 
Cigna Corporation (CI) : Free Stock Analysis Report
 
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
 
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