Today's Must Read
Focus on Pro Customers to Aid Home Depot's (HD) Top Line
Sanofi's (SNY) Drug Dupixent is Key Driver of Sales
Thursday, June 17, 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 Apple (AAPL), The Home Depot (HD), and Sanofi (SNY). 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 Apple have underperformed the S&P 500 in the year-to-date period (-0.8% vs. +13.2%) on persistent worries that the iPhone maker may struggle in the post-pandemic world as demand for its products was pulled forward.
This is a plausible view, but the Zacks analyst believes that Apple should continue to benefit from momentum in the Services segment, driven by App Store, Cloud Services, Music, advertising and AppleCare.
Apple’s near-term prospects are bright, driven by new iPhones that support 5G, revamped iPad and Mac line-up of devices, healthcare-focused Apple Watch, and an expanding App Store ecosystem. Also, its focus on user privacy, as reflected by its latest iOS 15, iPadOS 15, macOS Monterey, and watchOS 8 updates, is a game changer. However, Apple refrained from providing any guidance due to uncertainties triggered by the COVID-19 pandemic.
The Home Depot shares have gained +13.4% over the last six months against the Zacks Retail Building Products industry’s gain of +10.1%. The Zacks analyst expects this momentum to continue as the company executes its One Home Depot plan, which focuses on expanding supply chain, technology investments and digital enhancements.
The company is also effectively adapting to the continued boom in renovations and construction activities, driven by investments in its business over the years. However, increased penetration of lumber products in the company’s sales mix continue to hurt gross margin. Also, continued pressure from shrink and higher transportation costs are major headwinds.
Shares of Sanofi have gained +10.7% in the past three months against the Zacks Large Cap Pharmaceuticals industry’s gain of +10.8%. The Zacks analyst believes that Sanofi’s Specialty Care unit is on a strong footing, particularly with regular label expansion of Dupixent.
Meanwhile, its R&D pipeline is strong and several data readouts are expected in 2021. Further, the 2020 Synthorx and Principia acquisitions have strengthened its R&D pipeline. However, weak performance of the Diabetes unit and generic competition for many drugs remain major headwinds for the company. Meanwhile, the ongoing pandemic has resulted in a slowdown of new patient starts of certain drugs as well as deferral of some vaccinations.
Other noteworthy reports we are featuring today include Honeywell International (HON), Applied Materials (AMAT) and CVS Health (CVS).
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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>>>