Today's Must Read
Amgen (AMGN) Rides on Solid Pipeline and Regular Deals
LNG Focus, Strong Production Portfolio Aid TOTAL (TOT)
Friday, August 14, 2020
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 Amazon.com (AMZN), Amgen (AMGN) and TOTAL (TOT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Amazon shares have outperformed the S&P 500 in the year-to-date period (+69.5% vs. +4.6%), with the pandemic accelerating digitization trends that had already been in place. The company has been a leader in both online sales as well as cloud computing and both of those businesses have been thriving during the pandemic.
Moreover, surge in online grocery shopping was a major positive. Additionally, solid Prime momentum owing to ultrafast delivery services and expanding content portfolio remained tailwind.
Further, strengthening AWS services and its growing adoption rate contributed well. Additionally, improving Alexa skills and features remained a major positive. Expanding smart home products offerings were tailwinds. However, accelerating coronavirus related expenses remain major concerns. Also, foreign exchange headwinds and rising cloud competition are risks.
Shares of Amgen have gained +7% over the past six months against the Zacks Biomedical and Genetics industry’s rise of +2.5%. The Zacks analyst believes that while Amgen’s drugs like Prolia, Evenity, Repatha, Aimovig, Otezla and biosimilars are driving sales, increasing competition for its legacy products continue to hurt the same.
Amgen beat Q2 estimates for earnings and sales. Sales of in-office administration products were hurt by COVID-19 related business disruption, which subsided later in Q2. Amgen boasts a strong biosimilars portfolio, which can drive long-term growth.
Amgen is also progressing with its pipeline while regularly pursuing “external opportunities” such as the acquisition of Otezla and the stake in China's BeiGene. Amgen also expects several important clinical data readouts from its innovative pipeline in the second half of 2020. However, pricing and competitive pressure are concerns.
TOTAL shares have gained +20% over the past three months against the Zacks Integrated International Oil industry’s rise of +6.4%. The Zacks analyst believes that the company is gaining from project startups, renewable assets, LNG portfolio and expanding upstream portfolio that has above industry-average exposure to faster-growing hydrocarbon producing regions.
TOTAL implemented cost-saving measures for preserving liquidity. Streamlining its portfolio and syncing it with long-term objectives are likely to strengthen operations. However, the company’s profitability can be adversely impacted by the ongoing decline in commodity prices.
It remains exposed to acquisition-related risk as these assets contribute a sizeable volume to production. TOTAL's operations in some politically-troubled regions and increasing competition might affect profitability.
Other noteworthy reports we are featuring today include American Tower (AMT), Vertex Pharmaceuticals (VRTX) and FedEx (FDX).
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Director of Research
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>>>