Today's Must Read
Segmental Demand Benefits Danaher (DHR), High Cost Hurts
New Drugs Fuel Novartis (NVS), Generic Competition A Headwind
Monday, July 26, 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), Danaher (DHR), and Novartis (NVS). 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 outperformed the S&P 500 over the past year (+57.8% vs. +40.6%), but the stock has lagged the broader Tech sector this year on lingering market worries about the company's standing in the post-Covid world.
The Zacks analyst sees the company's Q2 earnings report after the market's close on Tuesday (7/27) to reconfirm the momentum in its Services segment, driven by App Store, Cloud Services, Music, advertising and AppleCare.
An expanding App Store ecosystem, iPhones that support 5G, and a revamped iPad and Mac line-up of devices, are likely to boost Apple’s growth in the near term. Its ability to attract small developers is another major catalyst for growth. The company, however, refrained from providing any guidance due to the pandemic-related uncertainties.
Danaher shares have gained +31.3% over the last six months against the Zacks Diversified Operations industry’s gain of +19.2%. The Zacks analyst believes that the company is poised to gain from the Danaher Business System, buyouts and investment in product innovation in the quarters ahead.
For third-quarter 2021, Danaher anticipates core revenue growth in the mid to high-teens percentage range. Core sales are expected to benefit from pandemic-led tailwinds. A rise in costs and expenses, however, can be a major cause of concern for the company.
Shares of Novartis have gained +5.7% in the past three months against the Zacks Large-Cap Pharmaceuticals industry’s gain of +10.7%, however, the business is gradually recovering from the impacts of the pandemic. The Zacks analyst believes that momentum in key brands such as Cosentyx, Entresto, and Zolgensma, are likely to keep supporting Novartis’ growth in the quarters ahead.
New launches like Piqray and Mayzent are expected to boost sales and offset the resultant impact of the decline in sales of its legacy drugs. Novertis’ struggling Sandoz business also posted growth in the second quarter as the business is starting to stabilize. The oncology and generics businesses, however, are still reeling under the pressure of pandemic-led uncertainties.
Other noteworthy reports we are featuring today include AT&T (T), PetroChina (PTR) and Estée Lauder Companies (EL).
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>>>