Tuesday, March 23, 2021

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 Abbott Laboratories (ABT), AstraZeneca (AZN), and Booking Holdings (BKNG). 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 >>>

Abbott shares have outperformed the Zacks Medical Products industry over the past year (+74.5% vs. +47.1%). The Zacks analyst believes that the branded generics and international diabetes businesses should drive growth in the coming quarters. New product launches and acquisitions should boost sales further.

Moreover, its consumer-facing businesses like diabetes care, nutrition and established pharmaceuticals (EPD), are catching up pace. In Adult Nutrition, the company reported strong double-digit growth on robust sales of Ensure and Glucerna in the fourth quarter of 2020. Diabetes Care sales were strong on solid worldwide adoption of FreeStyle Libre.

In 2020, the company received U.S. approval of Freestyle Libre 2 and CE Mark for Libre 3 and Libre Sense Glucose Sport. Yet, the company’s performance was disappointing particularly in Pediatric Nutrition, Cardiovascular and Neuromodulation.

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

AstraZeneca shares have lost -8.1% over the last six months against the Zacks Large Cap Pharmaceuticals industry’s gain of +4.8%. The Zacks analyst believes that products like Nexium and Seroquel have been facing generic competition, which in turn is hurting sales.

The diabetes franchise also faces stiff competition while pricing pressure is hurting sales in the respiratory unit. Nonetheless, AstraZeneca’s newer drugs like Lynparza, Tagrisso and Imfinzi should keep driving revenues.

Its pipeline is strong with several phase III data readouts lined up for 2021. AstraZeneca has also engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like China.

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

Shares of Booking Holdings have gained +2.5% in the past three months against the Zacks Internet Commerce industry’s gain of +1.9%. The Zacks analyst believes that Booking Holdings has been benefiting from improving bookings. The re-opening of economy is contributing well to the company's bookings.

Additionally, its expanding payment platform is acting as a tailwind. The company remains optimistic about its highly variable cost structure and strong liquidity position, which are expected to help it in navigating through the current crisis scenario.

Moreover, growing alternative accommodation business and strengthening flight capabilities are other positives. However, disruptions in the travel industry caused by coronavirus remain major headwinds. Furthermore, continued sluggishness in the company's agency business remains an overhang.

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

Other noteworthy reports we are featuring today include Duke Energy (DUK), Vertex Pharmaceuticals (VRTX) and Yum China Holdings (YUMC).

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Sheraz Mian

Director of Research

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>>>