Monday, July 17, 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 Walmart Inc. (WMT), AbbVie Inc. (ABBV) and Nike, Inc. (NKE). 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 >>>

Walmart’s shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+21.5% vs. +19.3%). The company has been benefiting from its robust omnichannel operations due to its efforts to enhance store and online experience. Walmart has been particularly gaining from its efforts to boost delivery services.

Increased market share in grocery continued to boost U.S. comp sales in the first quarter of fiscal 2024, wherein the top and bottom lines beat the Zacks Consensus Estimate and grew year over year. Strong comp sales growth globally, expense leverage and e-commerce growth across all units were upsides.

Although Walmart raised its guidance for fiscal 2024, its adjusted earnings per share view suggests a decline from the year-ago period figure. The company is battling cost inflation, which is likely to remain elevated. An adverse product mix has also been a downside for margins.

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

Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-6.1% vs. +9.7%). 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. Estimates have declined ahead of Q2 earnings. AbbVie has a positive record of earnings surprises in recent quarters.

However, AbbVie 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. It has several candidates that have blockbuster potential.

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

Shares of Nike have gained +4.2% over the past year against the Zacks Shoes and Retail Apparel industry’s gain of +9.2%. The company’s results benefited from its business strategy, compelling product innovation and digital leadership. The strong results were also supported by continued strength in retail traffic trends within Nike Direct, which has boosted conversion rates.

Its Consumer Direct Acceleration strategy, along with robust performance in its digital and DTC businesses have been key drivers. Backed by solid consumer momentum, a robust product innovation pipeline and a strong inventory, management provided solid outlook for fiscal 2024.

However, shares of Nike have lagged the industry in the past three months owing to dismal fiscal fourth quarter earnings performance. Nike witnessed decline in gross margin owing to higher freight, logistics and input costs, and currency headwinds.

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

Other noteworthy reports we are featuring today include Uber Technologies, Inc. (UBER), PayPal Holdings, Inc. (PYPL) and Becton, Dickinson and Co. (BDX).

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>>>