Today's Must Read
AbbVie's (ABBV) Pipeline Solid; Skyrizi, Rinvoq Shine
Streamlining Efforts Aid Citi (C) Amid Falling Fee Income
Tuesday, May 11, 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 Exxon Mobil Corp. (XOM), AbbVie Inc. (ABBV) and Citigroup Inc. (C). 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 Exxon Mobil have gained +51.8% over the year-to-date period against the Zacks Integrated Oil industry’s gain of +28.3%. The Zacks analyst believes that ExxonMobil's bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns, make it a relatively lower-risk energy sector play.
Notably, the firm estimates gross recoverable resource of nearly 9 billion oil-equivalent barrels from its offshore Guyana discoveries. As compared to 2019, this firm projects annual structural expense savings of $6 billion by 2023, aiding the bottom line. Also, ExxonMobil has significantly lower debt exposure as compared to other integrated majors. It reported strong first-quarter earnings thanks to improved realized commodity prices.
However, a lower fuel margin is keeping its downstream unit under pressure. Also, the pandemic affecting major economies around the world will likely keep energy demand low. This will, in turn, hurt the company's bottom line.
Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+8.5% vs +5.1%). The Zacks analyst believes that AbbVie’s key drug, Humira will continue to see strong demand trends in the United States.
AbbVie has been successful in expanding labels of its cancer drugs, Imbruvica and Venclexta. It has an impressive late-stage pipeline with several early/mid-stage candidates that have blockbuster potential. Its two new immunology drugs, Skyrizi and Rinvoq, are performing beyond expectations.
However, sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind. Also, the decline in HCV drug Mavyret’s sales is a concern.
Shares of Citigroup have outperformed the Zacks Banks - Major Regional industry over the last six-month period (+55.6% vs. +52.7%). The Zacks analyst believes that the company’s first-quarter 2021 results reflect strong capital markets performance and reserve releases.
Citigroup’s streamlining efforts, along with strategic investments in core business, bode well. Also, net interest revenues are likely to be supported by loan growth and mix, despite the low interest rate environment. Further, manageable debt level makes it less likely to default interest and debt repayment obligations in case of any economic downturn.
However, pending litigation issues might keep legal expenses elevated for the company. Additionally, a subdued consumer banking business might dent fee income base to some extent.
Other noteworthy reports we are featuring today include Alphabet Inc. (GOOGL), Altria Group, Inc. (MO) and Micron Technology, Inc. (MU).
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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>>>