Today's Must Read
Amgen (AMGN) Rides on Solid Pipeline and Regular Deals
Strategic Acquisitions to Aid Morgan Stanley's (MS) Profits
Monday, January 25, 2021
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 NIKE (NKE), Amgen (AMGN) and Morgan Stanley (MS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
NIKE shares have outperformed the Zacks Shoes and Retail Apparel industry over the past year (+39% vs. +35.5%). The Zacks analyst believes that even as stores reopen, NIKE witnesses strong digital trends, which demonstrates the strength of its brands and investments made over the past several years to improve digital consumer experiences.
Digital sales for the NIKE brand improved in double digits across EMEA, Greater China and APLA along with triple-digit growth in North America. Moreover, it started the holiday season on a strong note with record online sales during the Black Friday week.
However, it is witnessing lower revenues at the wholesale business and NIKE-owned stores. Higher restructuring costs and continued investments in digital capabilities also acted as headwinds. SG&A expenses are envisioned to grow in low-single digit in fiscal 2021.
Shares of Amgen have lost -0.1% in the last six months against the Zacks Biomedical and Genetics industry’s gain of +7.7%. The Zacks analyst believes that Amgen’s drugs like Prolia, Evenity, Repatha, Aimovig, Otezla and biosimilars are driving sales, increasing competition for its legacy products is hurting the same.
Amgen is also progressing with its pipeline while regularly pursuing “external opportunities”. Amgen expects several important data readouts from its innovative pipeline, which could be catalysts for the stock. Amgen boasts a strong biosimilars portfolio, which is an important source of revenues. However, pricing and competitive pressure are concerns.
Though trends have improved, sales of physician-administered drugs are being hurt by COVID-19 related business disruption. Amgen’s shares have underperformed the industry in the past year. Estimates have gone down slightly ahead of Q4 results. Amgen has a positive record of earnings surprise in recent quarters.
Morgan Stanley shares have gained 47.3% over the past three months against the Zacks Investment Banking industry’s rise of +43.8%. The Zacks analyst believes that the planned acquisition of Eaton Vance and the buyout of E*Trade Financial are in sync with its efforts to focus less on capital markets driven sources.
These efforts, along with increasing focus on corporate lending, are likely to support financials. Further, the company’s solid capital deployments will continue enhancing shareholder value.
The company’s earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The company’s fourth-quarter 2020 results reflect efforts from business diversification, and solid trading and investment banking performance. A strong balance sheet is likely to aid growth.
Other noteworthy reports we are featuring today include Duke Energy (DUK), Vertex Pharmaceuticals (VRTX) and Moderna (MRNA).
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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>>>