Tuesday, May 6, 2025

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), Honeywell International Inc. (HON) and American Tower Corp. (AMT). 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 >>>

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You can read today's AWS here >>> Pre-Markets Slip Lower on Record Trade Deficit, Q1 Earnings

Today's Featured Research Reports

Shares of Novo Nordisk have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-44.9% vs. -6.9%). The company’s failure to meet the weight-loss target with CagriSema twice caused Novo Nordisk a huge setback. Intense rivalry in the obesity sector also threatens its market share. Patent expiry and pricing pressure across the diabetes market remain a headwind.

Nevertheless, Novo Nordisk’s diabetes drugs Ozempic and Rybelsus and obesity drug Wegovy are performing well, fueled by increasing demand. Label expansions in cardiovascular and other indications will likely boost sales. It has been tackling the supply constraints of Wegovy by making serious investments to ramp up production.

It is now indicated in the U.S. and the EU to also reduce heart risks, which is a huge boost. Novo Nordisk is also pursuing other indications like liver fibrosis and MASH for semaglutide.

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

Honeywell’s shares have outperformed the Zacks Diversified Operations industry over the past year (+11.2% vs. +8.3%). The company’s strength in the commercial aviation and building automation businesses augurs well for Honeywell. The Aerospace segment is particularly strong, driven by strength in the defense business and growth in air transport flight hours.

Strong demand across the commercial aviation aftermarket business is aiding the segment. The company also continues to reward shareholders, which adds to the stock’s appeal. While acquisitions have expanded its product range and geographic reach, they have increased the company’s balance sheet debt as well.

However, weakness in the Industrial Automation segment, due to lower demand for smart energy and thermal solutions, is worrisome. The weakened demand for personal protective equipment within the sensing and safety technologies business is also concerning. Foreign currency translation remains an overhang.

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

Shares of American Tower have outperformed the Zacks REIT and Equity Trust - Other industry over the past year (+27.5% vs. +13.9%). The company owns a extensive, geographically diversified communication real estate portfolio. Its first-quarter 2025 results reflect a rise in revenues, led by revenue growth in property and service segments.

With wireless carriers increasing capital expenditure due to rising wireless penetration, accelerated 5G network deployment efforts, and spectrum auctions, demand is likely to stay strong. The long-term leases with its tenants assure stable cash flows. Its continued efforts toward macro-tower investments to expand its global footprint and address the demand in these markets bode well for long-term growth.

A decent financial position supports its growth endeavors. However, customer concentration and consolidation are a concern in the wireless industry, and will likely weigh on top-line growth. It also faces headwinds from Sprint churn.

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

Other noteworthy reports we are featuring today include Amphenol Corp. (APH), Northrop Grumman Corp. (NOC) and Vulcan Materials Co. (VMC).

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>>>