Top Analyst Reports For Microsoft, Salesforce.com & Novo Nordisk
Zacks Investment Research | Mar 20, 2020 12:23AM ET
Friday, March 20, 2020
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 Microsoft (MSFT), salesforce.com (CRM) and Novo Nordisk (CSE:NOVOb) (NVO). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Microsoft’s shares have outperformed the S&P 500 over the past six months (+4.1% vs. -18.9%). The Zacks analyst believes that Microsoft is benefiting from growing user base of its different applications like Office 365 commercial, Dynamics, Outlook mobile and Teams.
Moreover, Azure’s expanding customer base is a key catalyst. Markedly, the ongoing expansion in Microsoft Teams’ subscriber base is strengthening the company’s competitive position in the enterprise communication market against Slack and Zoom. Furthermore, the company is well poised to widen the total addressable market through acquisitions of GitHub and PlayFab.
However, management doesn’t expect to meet its previous third-quarter fiscal 2020 projection for More Personal Computing segment revenues due to the coronavirus outbreak in China. This, in turn, raises investors’ concerns, at least in the near term.
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Shares of salesforce.com have lost 15.9% over the past year against the Zacks Computer Software industry’s rise of 2%. The Zacks analyst believes that Salesforce has been benefiting from a robust demand environment as customers are undergoing a major digital transformation.
The rapid adoption of its cloud-based solutions is driving demand for its products. Continued deal wins in the international market is another growth driver. Furthermore, Salesforce’s recent acquisition of Tableau positions the company to be a leader in business analytics for actionable results in everything from operations to HR.
However, stiff competition from Oracle (NYSE:ORCL) and Microsoft is a concern. Besides, increasing investments in international expansions and data centers are an overhang on near-term profitability.
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Novo Nordisk’s shares have lost 10% over the past three months against the Zacks Large Cap Pharmaceuticals industry’s fall of -18.2%. The Zacks analyst believes that a solid performance from Tresiba, Victoza, Ozempic, Xultophy and Saxenda maintains momentum for the company.
Ozempic, a once-weekly GLP-1, continues to gain market share. The label of Ozempic was further expanded by the FDA to include a cardiovascular indication. Rybelsus was recommended for approval for treatment of adults with type II diabetes by the European regulatory authorities and a potential approval will boost sales.
Label expansion of existing drugs will further boost sales for the company. However, lower realized prices in the Unites States, loss of exclusivity for products in hormone replacement therapy and intensifying competition will adversely impact sales.
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Other noteworthy reports we are featuring today include NextEra Energy (NYSE:NEE) (NEE), American Express (AXP) and Fiserv (NASDAQ:FISV) (FISV).
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Mark Vickery
Senior Editor
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
Today's Must Read/h6
Featured Reports/h6
Per the Zacks analyst, NextEra's investment in electricity generation and strengthening its infrastructure will boost profitability.
Per the Zacks analyst, revenue gains from business growth in new verticals, shift toward digital, increase in consumer spending, is impressive.
Per the Zacks analyst, the First Data acquisition has bolstered Fiserv's position as a payments and financial technology provider.
Per the Zacks analyst, Vertex's new triple combo cystic fibrosis (CF) pill, Trikafta, should drive 2020 sales growth.
Per the Zacks analyst, The Panjiva buyout has enhanced S&P Global's data and analytical offerings, generating higher revenues.
Per the Zacks analyst, Martin Marietta is poised to benefit from higher shipments, strong pricing and cost-management efforts.
Per the Zacks analyst, NVR is poised to benefit from the current positive housing market scenario, solid business model and strong backlog.
Per the Zacks analyst, NextEra's investment in electricity generation and strengthening its infrastructure will boost profitability.
Per the Zacks analyst, revenue gains from business growth in new verticals, shift toward digital, increase in consumer spending, is impressive.
Per the Zacks analyst, the First Data acquisition has bolstered Fiserv's position as a payments and financial technology provider.
Per the Zacks analyst, Vertex's new triple combo cystic fibrosis (CF) pill, Trikafta, should drive 2020 sales growth.
Per the Zacks analyst, The Panjiva buyout has enhanced S&P Global's data and analytical offerings, generating higher revenues.
Per the Zacks analyst, Martin Marietta is poised to benefit from higher shipments, strong pricing and cost-management efforts.
Per the Zacks analyst, NVR is poised to benefit from the current positive housing market scenario, solid business model and strong backlog.
New Upgrades/h6
Per the Zacks analyst, Novo Nordisk's strong and broad diabetes portfolio drives growth for the company. However, intensifying competition is a concern for the company.
The Zacks Analyst is impressed with Xerox's Strategic Transformation program, which is helping it achieve gross productivity gains and cost savings.
Per the Zacks analyst, Ensign is set to grow on acquisitions of real estate and nursing operations, which, in turn, will drive revenue growth.
Per the Zacks analyst, Novo Nordisk's strong and broad diabetes portfolio drives growth for the company. However, intensifying competition is a concern for the company.
The Zacks Analyst is impressed with Xerox's Strategic Transformation program, which is helping it achieve gross productivity gains and cost savings.
Per the Zacks analyst, Ensign is set to grow on acquisitions of real estate and nursing operations, which, in turn, will drive revenue growth.
New Downgrades/h6
Sales of Harley Davidson's bikes, especially in the United States, are on the decline amid aging consumer demographics. The Zacks analyst is also worried about the firm's elevated leverage of 74%.
Per the Zacks analyst, sluggish travel trends across the world on account of the coronavirus pandemic are negatively impacting TripAdvisor.
Per the Zacks analyst, B&G Foods has been grappling with input cost inflation, which was witnessed in the fourth quarter. Cost inflation is likely to persist in 2020, which may weigh on margins.
Sales of Harley Davidson's bikes, especially in the United States, are on the decline amid aging consumer demographics. The Zacks analyst is also worried about the firm's elevated leverage of 74%.
Per the Zacks analyst, sluggish travel trends across the world on account of the coronavirus pandemic are negatively impacting TripAdvisor.
Per the Zacks analyst, B&G Foods has been grappling with input cost inflation, which was witnessed in the fourth quarter. Cost inflation is likely to persist in 2020, which may weigh on margins.
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