Today's Must Read
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
Bristol-Myers' (BMY) Cancer Drugs Aid Growth Amid Stiff Rivalry
Thursday, March 31, 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 Walmart Inc. (WMT), Adobe Inc. (ADBE), and Bristol-Myers Squibb Company (BMY). 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 >>>
Walmart shares have lagged the Zacks Retail - Supermarkets industry over the past one year period (+12.2% vs. +15.4%), reflecting the high costs incurred by the company related to supply chain, wages and COVID-19 that are weighing on the outlook for margins. The company envisions operating income and earnings per share to decline in the first quarter, as it cycles stimulus gains witnessed last year, along with higher wages for this year.
Walmart continues to benefit from its robust omnichannel efforts and last-mile delivery capabilities. With more customers and members returning to stores and clubs, demand seems to be strong. Reflection of the same was visible in fourth-quarter results, wherein both top and bottom lines grew year over year.
Adobe shares have gained +52.8% over the past two period against the Zacks Computer - Software industry’s gain of +91%. The Zacks analyst believes that the company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products drove the top-line growth. Further, rising subscription revenues and solid momentum across the mobile apps remained major positives. Growth in emerging markets, robust online video creation demand and solid adoption of Acrobat are tailwinds.
Also, continued key customers wins of the company are contributing well. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and strong Workfront momentum. However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment.
Shares of Bristol-Myers have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+20% vs. -27.7%). The Zacks analyst believes that strong performance of Eliquis and accelerated growth for Opdivo. Eliquis is the leading oral anticoagulant drug and continues to experience growth in its market share. The label expansion of Opdivo into indications of lung cancer, renal cancer and gastric cancer boosted sales. Revlimid continues to gain from demand for triple-based therapies and increasing treatment duration.
The approval of new drugs adds a new stream of revenues, which should boost growth in the coming quarters. The pipeline progress has been impressive and strategic collaborations will further expand the portfolio. Shares have outperformed the industry in the year so far. However, Revlimid is facing generic competition, which will adversely impact sales. Competition is stiff for Opdivo.
Other noteworthy reports we are featuring today include Lowe's Companies, Inc. (LOW), BHP Group Limited (BHP) and Micron Technology, Inc. (MU).
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>>>