Today's Must Read
ExxonMobil (XOM) Banks on Oil-Rich Offshore Guyana Assets
Strong Demand Drives Honeywell (HON), Aerospace Sector Ails
Friday, October 8, 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 Roche Holding AG (RHHBY), Exxon Mobil Corporation (XOM), and Honeywell International Inc. (HON). 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 Roche have performed inline with the Zacks Large Cap Pharmaceuticals industry in the year to date period (+12.6% vs. +12.3%). The Zacks analyst believes that a significant presence in the oncology market, strong demand for its breast cancer drugs and the expansion of portfolio into immunology are the major positives for Roche.
The base diagnostics business has maintained its momentum on the back of strong demand for COVID-19 tests. A steady growth in Ocrevus, Evrysdi, Tecentriq, and Hemlibra continues to boost revenues. Stiff competition from biosimilars for some of Roche’s key drugs such as Avastin, MabThera/Rituxan and Herceptin are likely to impact sales in the near term.
Exxon Mobil shares have gained +92.1% over the past year against the Zacks Integrated International Oil industry’s gain of +77.1%. The Zacks analyst believes that major discoveries in the Stabroek Block have enhanced prospects for ExxonMobil's upstream businesses. The company recently raised the estimate for discovered recoverable resources from the Stabroek Block to approximately 10 billion oil-equivalent barrels.
Its optimal integrated capital structure as well as management's track record of CAPEX discipline across the commodity price cycle make it a relatively lower-risk energy sector play. Above-average capital spending program, weakness in the downstream business, and lower estimated profits from its chemical business are some of the major headwinds though.
Shares of Honeywell have lost -3.6% over the past six months against the Zacks Diversified Operations industry’s gain of +5.8%, however, things seem to be improving for the company. The Zacks analyst believes that Honeywell is set to benefit from strength in warehouse and workflow solutions businesses in the quarters ahead.
Cost control as well as operational excellence initiatives, acquisitions and a strong cash flow are some of the other tailwinds. Weakness in defense and space businesses, high-debt levels and high costs and operating expenses are likely to weigh on its revenues though.
Other noteworthy reports we are featuring today include Chevron Corporation (CVX), Equinix, Inc. (EQIX) and Aon plc (AON).
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>>>