Tuesday, March 12, 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 Novo Nordisk A/S (NVO), Tesla, Inc. (TSLA) and Airbnb, Inc. (ABNB). 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 Novo Nordisk have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+88.4% vs. +36.8%). The company has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus in the diabetes market and obesity drug Wegovy have been performing well fueled by increasing demand.

Label expansions of these drugs in cardiovascular and other indications will likely boost sales. Novo Nordisk has been tackling the supply constraints of Wegovy by increasing its manufacturing capabilities. Wegovy is now indicated in the United States to also reduce heart risks, which is a huge boost. Studies on other pipeline candidates are also progressing well.

Acquisitions to widen its portfolio are also encouraging. However, intense rivalry in the obesity sector threatens Novo Nordisk’s 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 >>>)

Tesla’s shares have outperformed the Zacks Automotive - Domestic industry over the past year (+1.9% vs. -6.8%). The company also cautioned that its vehicle volume growth rate for 2024 is expected to be lower than 2023.

That said, production ramp-up at Gigafactory 4 and 5 and new models, including Cybertruck, are set to support long-term delivery growth. Importantly, the prospects of Tesla’s Energy Storage business are encouraging. The company anticipates the growth rate of deployments and revenues in the Energy Storage business to surpass that of the Automotive business in 2024.

Robust liquidity and the solid potential of its charging business are other positives. While shrinking margins remain a near-term concern, the Zacks analyst expects Tesla to deliver outsized returns in the long run.

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

Shares of Airbnb have outperformed the Zacks Internet - Content industry over the past year (+40.6% vs. +35.2%). The company is benefiting from continuous improvements in Nights and Experiences Booked, enabling it to witness a positive trend in its Gross Booking Value. Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers is a tailwind.

Further, increasing guest demand and continuous recovery in cross-border travel are major positives. Strong momentum in active listings, owing to supply growth across all regions, particularly in Asia Pacific and Latin America, is benefiting the top line. Moreover, growing awareness around hosting and new features introduced for hosts is a plus.

However, greater volatility in travel demand due to macroeconomic uncertainties, rising competition and impacts of geopolitical conflicts, remain concerns.

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

Other noteworthy reports we are featuring today include Schlumberger Ltd. (SLB), ONEOK, Inc. (OKE) and CDW Corp. (CDW).

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>>>