Today's Must Read
Solid Investments Aid Duke Energy (DUK), Weak Solvency Woes
New Buyouts Aid Boston Scientific (BSX), Core CRM Grows
Friday, July 29, 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 Novartis AG (NVS), Duke Energy Corporation (DUK), and Boston Scientific Corporation (BSX). 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 >>>
Novartis shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+21.0% vs. -3.0%). The company’s second quarter performance was good on improvement in the lagging Sandoz business and cardiovascular drug Entresto’s momentum. Sandoz's performance was driven by growth in Europe on both launches and the recovery of the healthcare systems.
Consequently, the company also raised the full-year guidance for Sandoz. Drugs like Cosentyx, Entresto, Kesimpta, Zolgensma, Kisqali and Leqvio should continue to fuel growth and offset the impact of generic competition. The launch of additional drugs like Pluvicto, Piqray, Leqvio and Mayzent, and the label expansion of key drugs should also boost performance further.
The pipeline progress is impressive, and the company has some promising candidates. However, generic competition for key drugs and pipeline setbacks pose concerns.
Duke Energy shares have outperformed the Zacks Utility - Electric Power industry over the year-to-date basis (+5.8% vs. +2.3%). The company is a premier utility service provider that invests heavily in infrastructure and expansion projects. During the 2022-2026 period, it projects to spend the capital of $63 billion, while $130 billion over the next decade.
It has lowered its carbon emissions by 44% since 2005 and is now expanding its 2050 net-zero goals to include Scope 2 and certain Scope 3 emissions. It expects a projects load growth to increase nearly 1.5% in 2022. Yet, its ability to achieve a net-zero target by 2050 at a cost-effective price could be at risk due to higher technological resources prices.
Also, the fluctuating energy prices may impact its results. A comparative analysis of the its trailing 12-month Enterprise Value/Sales ratio shows a gloomy picture that may concern investors.
Boston Scientific shares have declined -9.7% over the past year against the Zacks Medical - Products industry’s decline of -29.0%. The company’s mounting costs and expenses are putting pressure on its margins. The ongoing macro-environment challenges related to increasing freight costs and higher direct labor wages continue to hamper business. Unfavorable foreign exchange deters growth. The upper end of the full-year adjusted EPS guidance has been reduced increasing concerns.
However, Boston Scientific ended the second quarter of 2022 on a bullish note with adjusted earnings and revenues surpassing the Zacks Consensus Estimate. The company registered a year-over-year improvement in organic sales, indicating a strong rebound in the legacy business from the pandemic mayhem. Organic revenues at each of its core business and geographies were up. The raised 2022 organic revenue guidance looks promising.
Other noteworthy reports we are featuring today include Norfolk Southern Corporation (NSC), Centene Corporation (CNC), and Cadence Design Systems, Inc. (CDNS).
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>>>