Tuesday, August 15, 2023

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Visa Inc. (V), Novo Nordisk A/S (NVO) and Medtronic plc (MDT). 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 >>>

Visa shares have modestly outperformed rival Mastercard this year (+15.8% vs. +13.8%), but somewhat lagged the S&P 500 index (+15.8% vs. +18.4%). The stock has done better than the equal-weighted version of index, given the strong performance of a few megacap Tech stocks.

The company’s numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues. For fiscal 2023, our estimate for revenues indicates almost 11.1% year-over-year growth.

Constant investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon for Visa. Steady domestic volumes and transactions rise will aid its overall performance. It reported solid fiscal third-quarter results thanks to higher cross-border volumes. A strong cash position enables it to boost shareholder value.

However, high operating expenses stress its margins. Ramped-up client incentives will dent the top line. Its volumes are likely to see diminishing effects of the Russia-Ukraine conflict. As such, it warrants a cautious stance.

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

Shares of Novo Nordisk have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+71.3% vs. +22.7%). The company has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the market. Saxenda and Wegovy sales have been gaining momentum.

Label expansions of diabetes and obesity care drugs are likely to further boost sales. Novo Nordisk raised its 2023 view along with its second-quarter results, expecting better sales of its GLP-1 diabetes products. Its diversifying efforts to develop new treatments are encouraging.

However, competition is getting stiffer from pharma bigwigs like Pfizer, who are likely to eat away from Novo Nordisk’s Diabetes care market share. Patent expiry and pricing pressure across the diabetes market also remain a woe.

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

Medtronic shares have outperformed the Zacks Medical - Products industry over the past six months (+0.4% vs. -1.9%). The company is strategically expanding its global presence to address the unmet demand for advanced medical technologies. Within Cardiovascular, Medtronic is gaining market share, banking on product launches.

Within MedSurg, Medtronic is scaling production of Hugo RAS. Innovations and market expansion efforts are helping it offset the impact of the inflation and supply disruptions.

However, strong liquidity position should allow it to meet its near-term debt obligations. All these factors support our bullish stance on the stock.

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

Other noteworthy reports we are featuring today include Shopify Inc. (SHOP), Colgate-Palmolive Company (CL) and Amphenol Corporation (APH).

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>>>