Today's Must Read
Edwards' (EW) Critical Care Business Solid Amid Forex Woes
Spree of Buyouts to Aid Johnson Controls (JCI) Amid Cost Woes
Wednesday, January 26, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including AbbVie Inc. (ABBV), Edwards Lifesciences Corp. (EW), and Johnson Controls International plc (JCI). 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 AbbVie have outperformed the Zacks Large-Cap Pharmaceuticals industry over the past year (+27.1% vs. +11.7%). The Zacks analyst believes that several new drugs in AbbVie’s portfolio have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Successful label expansions of Imbruvica and Venclexta have been boosting AbbVie’s revenues. ABBV also has an impressive late-stage pipeline with several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified its revenue base, enhancing its long-term growth potential. FDA’s order to include a heart-risk warning in the label of JAK inhibitor drug, Rinvoq, however, may hurt the drug’s sales.
Edwards Lifesciences shares have gained +1.5% over the past six months against the Zacks Medical Instruments industry’s loss of -10.2%. The Zacks analyst believes that the huge untapped potential in emerging markets will act as a positive catalyst for Edwards Lifesciences.
Edwards Lifesciences finished the third quarter of 2021 with better-than-expected earnings despite the impact of the Delta variant. Edwards has also reinstated its full-year 2021 outlook, which is indicative of the continuation of the current bullish trend. Continued strong adoption of the SAPIEN 3 Ultra platform and the PASCAL system across Europe is another catalyst. Tough competition in the cardiac devices market and reimbursement issues, however, remain as the major headwinds.
Shares of Johnson Controls have gained +1.4% in the last three months against the Zacks Security and Safety Services industry’s loss of -9.3%. The Zacks analyst believes that Johnson Control is poised to benefit from a strong balance sheet, COGS reduction initiative and the OpenBlue digital platform.
Strategic buyouts of Synchrony, EasyIO BEMS product line, Qolsys and Silent-Aire along with collaborations with Microsoft, Pelion, DigiCert, UL, SafeTraces and Phylagen also augur well for Johnson's growth prospects. Supply chain issues, forex woes, as well as stiff competition are likely to weigh on JCI’s margins, though.
Other noteworthy reports we are featuring today include Prudential Financial, Inc. (PRU), PG&E Corporation (PCG) and Etsy, Inc. (ETSY).
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>>>