Today's Must Read
Intel (INTC) Rides on Diversified Portfolio, Holistic Growth
Qualcomm (QCOM) Rides on 5G Traction, Portfolio Strength
Tuesday, July 5, 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 Novo Nordisk A/S (NVO), Intel Corp. (INTC), and Qualcomm Inc. (QCOM). 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 >>>
Novo Nordisk shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+32.6% vs. +20.1%) on the back of the company’s promising diabetes drug, Ozempic. The Zacks analyst has described the Rybelsus launch as further strengthening Novo Nordisk's best-in-class diabetes portfolio.
Ozempic, Rybelsus, Xultophy and Saxenda have been helping the company maintain momentum. Label expansion of these existing drugs is expected to boost sales.
However, lower realized prices in the U.S., loss of exclusivity for products and stiff competition are affecting sales totals. Patent expiration on some of the products in Novo Nordisk’s portfolio is a concern. Sales continue to be negatively impacted by the Covid pandemic. Supply challenges for Wegovy have also hurt the stock.
Intel shares have declined -28.3% year to date versus the Zacks Semiconductor - General industry’s decline of -41.6%. The chip-making major reaffirmed its earlier guidance for 2022 despite short-term headwinds, as it expects demand to pick up in the second half of the year.
The company is riding on prospects of the Internet of Things and Mobileye businesses. Mobileye growth should be driven by design wins amid a recovering auto industry. Recovery in the enterprise business of the data center segment is a positive. Intel is developing more integrated solutions that will likely be competitive on a cost-per-watt basis while offering customized solutions for bigger firms.
Qualcomm shares have declined -10.9% over the past year against the Zacks Wireless Equipment industry’s decline of -16.7%. The company faces intense competition from low-cost chip manufacturers. High research and development costs are expected to dent margins, while the global chip shortage due to supply-chain disruptions is a headwind. It is susceptible to risks arising from lower handset shipments, especially in China.
However, Qualcomm is focused on retaining its leadership in 5G and the chipset market, delivering low-power resilient multi-gigabit connectivity with best-in-class security. It is witnessing healthy traction in EDGE networking solutions across diverse sectors.
The buyout of Arriver will bolster its ability to deliver fully integrated Advanced Driver Assistance System solutions to automakers. The company is well-positioned to benefit from solid 5G traction with greater visibility and diversified businesses to meet its long-term revenue targets.
(You can read the full research report on Qcom here >>>)
Other noteworthy reports we are featuring today include T-Mobile US, Inc. (TMUS), Blackstone Inc. (BX), and Sony Group Corp. (SONY).
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>>>