Thursday, October 5, 2023

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 Alphabet Inc. (GOOGL), Sanofi (SNY) and Mondelez International, Inc. (MDLZ). 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 Alphabet have outperformed the Zacks Internet - Services industry over the year-to-date period (+53.3% vs. +50.9%). The company’s strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space.

Further, major updates in its search segment are enhancing the search results. Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Further, its deepening focus on its wearables category remains a tailwind. Alphabet’s expanding presence in the autonomous driving space is contributing well.

Its growing efforts to gain a foothold in the healthcare industry can be considered other positives. However, sluggishness in the company’s Network advertisement business remains a headwind. Additionally, its growing litigation issues and increasing expenses are concerns.

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

Sanofi’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+14.2% vs. +4.9%). The company beat Q2 estimates for earnings but missed the same for sales. Sanofi’s Specialty Care unit is on strong footing, particularly with the outstanding growth trajectory of Dupixent, which has become the key top-line driver for Sanofi.

Dupixent enjoys strong demand trends across all approved indications and geographies. Sanofi possesses a leading vaccine portfolio, which has become the primary top-line driver. Its R&D pipeline is strong. Several data readouts are expected in 2023.

The company has also launched several new drugs in the past couple of years and is expanding its pipeline through M&A deals. However, headwinds include the weak performance of diabetes drugs and recent negative pipeline developments.

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

Shares of Mondelez International have outperformed the Zacks Food - Miscellaneous industry over the year-to-date period (+4.8% vs. -14.9%). The company has been benefiting from strength in emerging markets and its core chocolate and biscuit categories. It has also been focused on strengthening areas with higher growth potential via prudent acquisitions (like Clif Bar and Ricolino) and divestitures.

These upsides, together with pricing actions, fueled second-quarter 2023 results, wherein the top and bottom lines increased year over year and surpassed the Zacks Consensus Estimate. Backed by the stellar year-to-date performance, management raised its 2023 organic net revenue and earnings guidance.

However, Mondelez has been battling challenges related to global cost inflation. The company continues to anticipate double-digit inflation in 2023 stemming from continued elevated costs of packaging, ingredients and labor.

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

Other noteworthy reports we are featuring today include Uber Technologies, Inc. (UBER), Airbnb, Inc. (ABNB) and American Tower Corp. (AMT).

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