Today's Must Read
Suncor (SU) Buoyed by Integrated Business Model
Accelerating Non-Trading Revenue Base Aids Nasdaq (NDAQ)
Friday, September 30, 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 Novo Nordisk A/S (NVO), Suncor Energy Inc. (SU) and Nasdaq, Inc. (NDAQ). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Novo Nordisk shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+4.7% vs. +7.1%). The Zacks analyst believes that lower realized prices in the United States, loss of exclusivity for products and stiff competition are affecting company’s sales. Sales are also being negatively impacted by the COVID-19 pandemic. The supply challenges for Wegovy have impacted the stock. The patent expiry on some of the products in Novo Nordisk’s portfolio remains a woe.
However, the promising diabetes drug, Ozempic, is off to a solid start since its launch. The drug remains the growth engine for the company. The launch of Rybelsus also looks impressive. Novo Nordisk has one of the broadest diabetes portfolios in the industry. Drug sales have been gaining and maintaining momentum.
Suncor Energy’s shares have advanced +35.1% over the past year against the Zacks Oil and Gas - Integrated - Canadian industry’s gain of +42.8%. The Zacks analyst believes that the company has an impressive supply chain network, owning significant oil sands and conventional production platforms, along with a strong downstream portfolio. Suncor Energy is one of the best positioned companies in the energy space given its access to abundant resources, rich operating experience and technical know-how. Suncor Energy's major projects, including Fort Hills and Syncrude, should support its growth momentum.
The company's strong liquidity and modest near-term debt maturities are other positives. Moreover, Suncor Energy plans to maintain a disciplined capital approach and estimates to repay further debt in 2022, thereby indicating its ability to generate cash flow.
Nasdaq shares have outperformed the Zacks Securities and Exchanges industry over the past three-month period (+10.1% vs. -4.4%). The Zacks analyst believes that the company has been successful in maximizing opportunities as a technology and analytics provider and growing core marketplace businesses. Focus on growth via acquisitions and organic initiatives, which aided its entry into new markets and helped it gain cross-selling opportunities, bodes well. Intense focus on Market Technology and Information Services businesses also helps the company to explore vast opportunities per its developmental strategies.
Nasdaq remains committed to deploy capital effectively by investing in organic growth initiatives. Its board announced a three-for-one stock split in the form of a stock dividend. However, high expenses weigh on margin expansion. High leverage ratio poses risk.
Other noteworthy reports we are featuring today include W.W. Grainger, Inc. (GWW), Textron Inc. (TXT), and Magnolia Oil & Gas Corporation (MGY).
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>>>