Today's Must Read
Strategic Initiatives Aid Anthem (ANTM), Rising Costs Hurt
Digital Transformation, AI Proliferation Aid Infosys (INFY)
Wednesday, January 19, 2022
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), Anthem, Inc. (ANTM), and Infosys Limited (INFY). 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 modestly underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+12.8% vs. +17.5%), however, things seem to be improving for it. The Zacks analyst believes that strong growth in Ocrevus, Evrysdi, Tecentriq and Hemlibra helps Roche counter biosimilar competition for several of its legacy drugs. Approval of new drugs is another major positive.
Roche’s Diagnostics segment’s is likely to continue exhibiting strong performance on the back of new launches in the year ahead. The division is poised to benefit from strong demand for COVID-19 tests as well as other diagnostics platforms. RHHBY performance in the year has been encouraging, with the core pharmaceuticals business showing signs of recovery.
Anthem shares have gained +15.6% over the past six months against the Zacks Medical Health Maintenance Organization industry’s gain of +9.4%. The Zacks analyst believes that strategic buyouts and collaborations, an improving top line as well as an expanded product portfolio is likely to drive Anthem’s long-term growth.
Acquisitions and collaborations have enabled ANTM boost its Medicare Advantage growth and also strengthened its business portfolio. Momentum in Medicare and Medicaid businesses, coupled with contract wins are expected to drive Anthem’s membership. Escalating costs and a weak balance sheet, however, continue to weigh on its margins and impact financial flexibility.
Shares of Infosys have gained +6.5% in the last three months against the Zacks IT Services industry’s loss of -16.6%. The Zacks analyst believes that Infosys has been benefiting significantly from large deal wins as well as momentum in digital services.
INFY’s sustained focus on Agile Digital and artificial intelligence-driven Core services is a tailwind. Strong demand for its services in cloud, Internet of Things, cyber security, data and analytics is a key driver. Steadily rising anti-outsourcing sentiments in certain parts of the world, higher subcontractor costs and Infosys’ compensation revision have been weighing on margins, though.
Other noteworthy reports we are featuring today include Mitsubishi UFJ Financial Group, Inc. (MUFG), Norfolk Southern Corporation (NSC) and Chipotle Mexican Grill, Inc. (CMG).
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>>>