Tuesday, February 20, 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 Merck & Co., Inc. (MRK), ServiceNow, Inc. (NOW) and Blackstone Inc. (BX). 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 >>>

Merck shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (+18.2% vs. +13.7%) reflecting favorable demand momentum for products like Keytruda and Gardasil. With continued label expansion into new indications, particularly earlier-stage launches, Keytruda is expected to see continued growth.

Animal health and vaccine products are core growth drivers. Merck boasts a strong cancer pipeline, including Keytruda, which should drive long-term growth. Merck is investing in M&A activity to strengthen its pipeline.

However, generic competition for several drugs and rising competitive pressure, mainly on the diabetes franchise, will continue to be overhangs on the top line. There are concerns about Merck’s ability to grow its non-oncology business ahead of Keytruda’s loss of exclusivity later in the decade.

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

Shares of ServiceNow have outperformed the Zacks Computers - IT Services industry over the past six months (+37.9% vs. +30.9%). The company has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. It had 1897 total customers with more than $1 million in annual contract value at the end of the fourth quarter.

ServiceNow has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. Security and risk had a terrific quarter with 12 of the top 20 deals, out of which nine deals were more than $1 million. Customer, Employee and Creator workflows each had double-digit deals over $1 million.

It is benefiting from strong demand for its generative AI-powered solutions with the launch of Vancouver. Nevertheless, ServiceNow is suffering from high inflation, stiff competition, and challenging macro-economic environment.

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

Blackstone shares have outperformed the Zacks Financial - Miscellaneous Services industry over the past six months (+31.6% vs. +17.7%). The company’s strong revenue mix, global footprint and solid assets under management (AUM) balance are expected to keep aiding its financials. Its robust fund-raising ability will support top-line growth.

Yet, elevated consolidated expenses are likely to hamper Blackstone’s bottom-line growth in the near term. Also, lower chances of sustainability of the company's capital distribution activities are worrisome. The company has been facing substantial outflows in some of its funds of late, which are likely to hurt its financials.

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

Other noteworthy reports we are featuring today include Marsh & McLennan Companies, Inc. (MMC), Gilead Sciences, Inc. (GILD) and Diageo plc (DEO).

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>>>