Monday, March 13, 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 AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) 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 AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-1.6% vs. +3.3%). The company is facing concerns about long-term sales growth as Humira generics have entered the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales.

Slowing consumer demand due to economic pressures is hurting the aesthetics franchise’s sales. Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025.

However, AbbVie has several new drugs in its portfolio, which have the potential to drive the top line to make up for lost Humira revenues. Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by approval in new indications. It has several early/mid-stage candidates that have blockbuster potential.

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

Shares of NextEra Energy have declined -7.9% over the past year against the Zacks Utility - Electric Power industry’s decline of -9.2%. The company’s nature of its business is subject to complex federal, state and other regulations. Risk in operating nuclear units, unfavorable weather conditions and an increase in supply costs adversely impact earnings.

Nevertheless, NextEra Energy continues to expand its operations through the efficient execution of organic projects and strategic acquisitions. The company currently has many renewable projects in its backlog and their completion will ensure reduced emissions.

The merger of Gulf Power and FPL strengthens NextEra’s position in Florida. FPL’s customer base is expanding as Florida’s economy improves and continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations and efficient debt management acting as tailwinds.

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

Shares of ConocoPhillips have gained +7.9% over the past year against the Zacks Oil and Gas - Integrated - United States industry’s gain of +10.4%. The company holds a bulk of acres in the unconventional plays of Eagle Ford shale, Permian Basin and Bakken shale. Significant opportunities are there for the company in the Bakken Shale, where it owns about 750 undrilled locations that could provide access to huge reserves.

ConocoPhillips projects its 2023 production at 1.76-1.8 MMBoe/d, suggesting an increase from 1.74 MMBoe/d last year. COP’s balance sheet is significantly less leveraged than the industry it belongs to. Additionally, the company announced its 2023 planned return of capital to shareholders of $11 billion.

However, ConocoPhillips is highly exposed to oil price fluctuations, which makes things challenging for the company. Also, the company been generating lower dividend yield than the industry for the past few years. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Canadian Pacific Railway Limited (CP) and Intercontinental Exchange, Inc. (ICE).

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>>>