Monday, April 22, 2024

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 Novartis AG (NVS), American Express Company (AXP) and ConocoPhillips (COP). 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 Novartis have gained +2.3% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +16.2%. The company’s efforts to restructure its business are encouraging. With the separation of Sandoz, it has become a pure-play pharmaceutical company.

Drugs like Entresto, Kesimpta, Zolgensma, Kisqali and Leqvio continue to fuel growth and offset the impact of generic competition. The uptake of Pluvicto and Scemblix has been outstanding and should fuel top-line growth. The acquisition of Chinook Therapeutics has strengthened its renal pipeline.

However, generic competition for key drugs like Gilenya and pipeline setbacks are concerning. Earnings estimates for the first quarter are static ahead of the quarterly results.

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

American Express shares have outperformed the Zacks Financial - Miscellaneous Services industry over the past year (+44.1% vs. +17.1%). The company’s growth initiatives, like launching new products, reaching new agreements and forging alliances, are boosting its revenues. Consumer spending on T&E, which carries higher margins for AmEx, is advancing well.

American Express’ balance sheet looks strong with ample cash. Solid cash-generation abilities enable the pursuit of business investments and prudent deployment of capital via buybacks and dividends.

However, with higher utilization of the firm’s cards, expenses in the form of card member services and card member rewards are likely to go up and strain its margins. Its current debt level amid a high-interest rate environment induces a rise in interest expenses. As such, the stock warrants a cautious stance.

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

Shares of ConocoPhillips have outperformed the Zacks Oil and Gas - Integrated - United States industry over the past year (+27.8% vs. +20.3%). The company is poised for a robust oil and natural gas production outlook, benefiting from its extensive untapped drilling locations in cost-effective and diverse upstream assets such as Eagle Ford shale, Permian Basin and Bakken shale.

ConocoPhillips is strategically expanding its presence in the liquefied natural gas market to address the growing demands of energy transition toward a low-carbon future. Further, ConocoPhillips’ minimal debt exposure provides resilience during periods of low commodity prices and enhances its capacity to increase dividends.

However, a significant reliance on crude exposes the exploration and production firm to oil price fluctuations. On the cost front, inflationary pressures may contribute to a significant increase in production and operating expenses in 2024, thereby squeezing margins.

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

Other noteworthy reports we are featuring today include Netflix, Inc. (NFLX), Eaton Corporation plc (ETN) and Schlumberger Limited (SLB).

Director of Research

Sheraz Mian

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 Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>