Today's Must Read
Tesla (TSLA) Rides on Robust Demand for Models 3 &Y
Amgen (AMGN) Key Drugs Drive Sales Amid Biosimilar Woes
Monday, March 20, 2023
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 Alphabet Inc. (GOOGL), Tesla, Inc. (TSLA) and Amgen Inc. (AMGN). 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 Alphabet were in line with the Zacks Internet - Services industry over the past six months (+2.3% vs. +2.4%). The company's fourth quarter results were driven by its strength in the cloud business. Solid momentum across Other Bets segment was a positive. Its robust cloud division remains the key catalyst. Expanding data centers will continue to bolster its presence in the cloud space.
Also, strong focus on AI techniques and the home automation space should aid business growth. The company’s growing efforts to gain a foothold in the healthcare industry are other positives. Its deepening focus on its wearables category remains a tailwind. Alphabet’s expanding presence in the autonomous driving space is contributing well.
However, sluggishness in the company’s advertisement business remains a major headwind. Declining YouTube and Network advertising revenues are concerns.
(You can read the full research report on Alphabet here >>>)
Shares of Tesla have declined -41.3% over the past year against the Zacks Automotive - Domestic industry’s decline of -46.3%. The company is facing inflation and economic concerns, which could pose near-term challenges, The Zacks analyst expects Tesla to deliver outsized returns in the long run on the back of output ramp-up and the introduction of new models.
Nevertheless, though Tesla witnessed a massive sell-off last year, its shares have seen a sharp rebound of late. The company's long-term prospects remain solid. The electric vehicle (EV) king is set to benefit from the soaring popularity of its Models 3 and Y. We expect deliveries to see an annualized growth of around 33% in 2023.
Production ramp-ups at gigafactory 4 (in Berlin) and 5 (in Austin) and the introduction of new models, including Semi and Cybertruck, are set to support long-term deliveries growth. Additionally, Tesla’s energy generation and storage revenues outlook is promising. Falling debt levels is another positive.
(You can read the full research report on Tesla here >>>)
Amgen’s shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past six months (+2.4% vs. +0.4%). The company beat Q4 estimates for earnings and sales. Amgen is rapidly advancing its robust pipeline. The acquisition of ChemoCentryx added a strategic new growth asset, Tavneos, to Amgen’s portfolio.
Amgen boasts a strong biosimilars portfolio with potential new products expected to drive long-term growth. While key drugs like Prolia, Repatha and Evenity are driving sales, increasing competition for its legacy products is hurting the same.
However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products including some biosimilars. Increasing biosimilar competition for some legacy products and weakness in key brands like Otezla and Lumakras, create potential revenue headwinds.
(You can read the full research report on Amgen here >>>)
Other noteworthy reports we are featuring today include Fomento Económico Mexicano, S.A.B. de C.V. (FMX), FedEx Corp. (FDX) and Capital One Financial Corp. (COF).
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>>>