Top Research Reports For Apple, Facebook & AbbVie
Zacks Investment Research | Mar 09, 2020 03:45AM ET
Monday, March 9, 2020
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 Apple (AAPL), Facebook (NASDAQ:FB) (FB) and AbbVie (ABBV). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Apple’s shares have outperformed the S&P 500 over the past six months (+33.2% vs. +1.6%). The Zacks analyst believes that the company is benefiting from continued momentum in the Services segment, driven by strong App Store sales and the robust adoption of Apple Music and Apple Pay.
Non-iPhone devices, particularly Apple Watch and AirPod, are expected to drive the top line. Solid uptake of Apple Watch Series 5 is now helping the iPhone maker strengthen its presence in the personal health monitoring space. However, the company doesn’t expect to achieve its second-quarter revenue guidance due to the COVID-19 outbreak, which is expected to hurt iPhone supply and demand in China.
This in turn will likely dent investor confidence in the near term. Moreover, the company’s intensifying legal woes due to antitrust investigations and App Store-related lawsuits raise a concern.
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Shares of Facebook have gained +6.9% over the past year against the S&P 500’s rise of +8.7%. The Zacks analyst believes that Facebook is benefiting from growth in Instagram Stories and Feed, and expanding user base in Asia Pacific.
The company’s initiatives to improve privacy, transparency and authenticity of ads are likely to boost user trust and engagement. The launch of Facebook View app, Facebook Pay, a simpler and faster Messenger for iOS app and more location control feature for Android users is positive.
However, Facebook expects top-line growth to slow down due to increasing limitations in tracking user activity amid the growing privacy-related regulations and changes made in mobile operating systems and browser platforms by Apple and Google (NASDAQ:GOOGL) as well as in its own tools like the Off Facebook Activity controls. Moreover, a persistent mix shift toward Stories is anticipated to hurt ARPU.
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AbbVie’s shares have gained +2.3% over the past three months against the Zacks Large-Cap Pharmaceuticals industry’s fall of -0.4%. 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 and Rinvoq in 2019. Both are off to a strong start.
The acquisition of Allergan (NYSE:AGN), if successful, should diversify AbbVie’s revenue base and accelerate its non-Humira business. AbbVie’s shares have outperformed the industry in the past one year. However, 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.
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Other noteworthy reports we are featuring today include Illumina (NASDAQ:ILMN) (ILMN), TD Ameritrade (AMTD) and Freeport-McMoRan (FCX).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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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
The Zacks analyst expects Illumina to maintain its growth momentum on continued uptake of sequencing consumables, instruments and microarray portfolios.
Per Zacks analyst, TD Ameritrade's improved digital platforms have helped it witness higher client activities, thus aiding revenues.
Per the Zacks analyst, Freeport should gain from its progress in exploration activities to expand production capacity and efforts to deleverage balance sheet amid rising cash costs.
Per the Zacks analyst, higher investment income on the back of increase in yields and allocation of portfolio to fixed maturities will drive its long-term growth.
Viper Energy generates steady royalty income from mineral interests in Eagle Ford and Permian Basin.
The Zacks analyst expects Illumina to maintain its growth momentum on continued uptake of sequencing consumables, instruments and microarray portfolios.
Per Zacks analyst, TD Ameritrade's improved digital platforms have helped it witness higher client activities, thus aiding revenues.
Per the Zacks analyst, Freeport should gain from its progress in exploration activities to expand production capacity and efforts to deleverage balance sheet amid rising cash costs.
Per the Zacks analyst, higher investment income on the back of increase in yields and allocation of portfolio to fixed maturities will drive its long-term growth.
Viper Energy generates steady royalty income from mineral interests in Eagle Ford and Permian Basin.
New Upgrades/h6
Per the Zacks analyst, PulteGroup's annual land acquisition strategies and increased focus on growing demand for entry-level homes will drive growth.
Per the Zacks analyst, DICK'S Sporting is on track with the removal of the hunt category from its Field & Stream stores and its replacement with more compelling assortments. This should boost comps.
Per the Zacks analyst, PulteGroup's annual land acquisition strategies and increased focus on growing demand for entry-level homes will drive growth.
Per the Zacks analyst, DICK'S Sporting is on track with the removal of the hunt category from its Field & Stream stores and its replacement with more compelling assortments. This should boost comps.
New Downgrades/h6
Per the Zacks Analyst, Carpenter Technology's results will continue to bear the brunt of dismal global light vehicle markets and weak transportation demand amid coronavirus outbreak
Per the Zacks analyst, lower product pricing is hurting Olin's Chlor Alkali Products and Vinyls unit. Weak demand in automotive and industrial coatings markets is also weighing on its Epoxy segment.
Per the Zacks Analyst, Carpenter Technology's results will continue to bear the brunt of dismal global light vehicle markets and weak transportation demand amid coronavirus outbreak
Per the Zacks analyst, lower product pricing is hurting Olin's Chlor Alkali Products and Vinyls unit. Weak demand in automotive and industrial coatings markets is also weighing on its Epoxy segment.
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