Tuesday, June 20, 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 PepsiCo, Inc. (PEP), AbbVie Inc. (ABBV) and Honeywell International Inc. (HON). 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 >>>

PepsiCo shares have gained +3.4% over the past six months against the Zacks Beverages - Soft drinks industry’s gain of +7.4%. The company’s results reflect gains from strength and resilience in its diversified portfolio, modernized supply chain, improved digital capabilities, flexible go-to-market distribution systems and robust consumer demand trends.

It also gained from the resilience and strength in the global beverage and convenient food businesses. However, PepsiCo witnessed margin pressures in the first quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. Adverse currency rates also remain headwinds.

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

Shares of AbbVie have gained +0.4% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +17.5%. The company has several new drugs in its portfolio that 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 the approval in new indications. It has several early/mid-stage candidates that have blockbuster potential. However, there are concerns about long-term sales growth since Humira generics have entered the U.S. market.

Increasing competition from newer therapies is hurting Imbruvica’s sales. Slowing consumer demand due to economic pressure 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.

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

Honeywell shares have outperformed the Zacks Diversified Operations industry over the past year (+14.8% vs. +12.4%). The company is benefitting from the recovery in commercial flight hours, strength in advanced materials and UOP businesses augur well for Honeywell’s growth. Solid operational execution, pricing actions and cost-control measures continue to drive the company’s top line.

The company’s bullish forecast for 2023 holds promise. Efforts to handsomely reward shareholders with dividends and share buybacks hold promise. HON’s deal to acquire Compressor Controls raises optimism in the stock.

However, supply-chain disruptions remain a concern for the company. Weakness in the Safety and Productivity Solutions unit due to lower warehouse, and workflow and productivity solutions volumes is worrisome. Raw material cost inflation and adverse foreign currency movements are other headwinds.

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

Other noteworthy reports we are featuring today include Salesforce, Inc. (CRM), The Goldman Sachs Group, Inc. (GS) and CVS Health Corporation (CVS).

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>>>