Today's Must Read
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
Novo Nordisk's (NVO) Diabetes Drugs Aid Growth Amid Rivalry
Thursday, April 1, 2021
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 Facebook (FB), Adobe (ADBE), and Novo Nordisk (NVO). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Facebook shares have outperformed the S&P 500 over the past year (+86.2% vs. +59.4%). The Zacks analyst believes that Facebook is benefiting from steady user growth across all regions, particularly Asia-Pacific.
Increased engagement for its products like Instagram, WhatsApp and Messenger is a major growth driver. Strong advertising revenues were driven by a strong holiday shopping season for retail that benefited from the ongoing shift to online commerce.
Facebook expects year-over-year growth rates in total revenues to remain stable or modestly accelerate on a sequential basis in the first and second quarters of 2021. However, increasing regulatory headwinds in the EU and other countries is a concern.
Adobe’s shares have lost 0.8% over the last six months against the Zacks Software industry’s gain of 9.9%. The Zacks analyst believes that Adobe is benefiting from strong demand for its creative products.
The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Further, rising subscription revenues and solid momentum across the mobile apps are major positives.
Additionally, growth in emerging markets, robust online video creation demand and improving average revenue per user are tailwinds. However, lower end-market demand and exposure to Europe remain overhangs. High acquisition expenses do not bode well for its margin expansion.
Shares of Novo Nordisk have lost 5.6% in the past three months against the Zacks Large Cap Pharmaceuticals industry’s loss of 0.1%. The Zacks analyst believes that Victoza, Ozempic, Xultophy and Saxenda have been helping the company maintain momentum.
Label expansion of existing drugs is likely to further boost sales. Novo Nordisk beat both sales and earnings estimates for the fourth quarter of 2020.
In 2021, the company will continue its focus on commercial execution, while conducting more late-stage clinical studies than ever to meet the needs of the people living with diabetes and other serious chronic diseases. However, lower realized prices in the United States, loss of exclusivity for products in hormone replacement therapy and intensifying competition will affect sales.
Other noteworthy reports we are featuring today include PetroChina (PTR), Edwards Lifesciences (EW) and Teladoc Health (TDOC).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
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>>>