Tuesday, April 9, 2024

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 AbbVie Inc. (ABBV), Salesforce, Inc. (CRM) and General Electric Company (GE). 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 >>>

AbbVie’s shares have modestly outperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (+16.3% vs. +15%) on the back of optimism about the company's portfolio of new drugs.

Newer products, Skyrizi and Rinvoq, are performing extremely well, bolstered by approval in new indications, which should support top-line growth in the next few years. AbbVie has several early/mid-stage candidates that have the potential to drive long-term growth. Though revenues declined in 2023, AbbVie expects to return to robust sales growth in 2025.

However, the company faces several near-term headwinds like Humira’s biosimilar erosion, increasing competitive pressure on Imbruvica and weakness in fillers. Estimates have risen slightly ahead of Q1 earnings. AbbVie has a positive record of earnings surprises in recent quarters.

(You can read the full research report on AbbVie here >>>)

Shares of Salesforce have outperformed the Zacks Computer - Software industry over the past year (+57.8% vs. +44%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line.

Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned the company as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuously expanding generative AI offerings will help it tap the growing opportunities in the space.

However, stiff competition and unfavorable currency fluctuations are concerns. Also, softening IT spending amid the ongoing macroeconomic uncertainties could hurt its growth prospects.

(You can read the full research report on Salesforce here >>>)

General Electric shares have significantly outperformed the Zacks Diversified Operations industry over the past year (+66.2% vs. +11.3%) reflecting the value unlocked by the company's restructuring. The company has been witnessing strength in its Aerospace business, driven by robust demand for commercial engines and services. Rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel auger well for the company.

General Electric’s portfolio reshaping actions are likely to unlock values for its shareholders. GE Aerospace’s shareholder-friendly policies are also encouraging. Shares of the company have outperformed the industry in the past six months.

However, it has been dealing with high costs and expenses related to certain projects and restructuring activities, which might affect its margins and profitability. Supply-chain disruptions in the defense market continue to take a toll on its operations. Also, foreign exchange headwinds might be worrying.

(You can read the full research report on General Electric here >>>)

Other noteworthy reports we are featuring today include BP p.l.c. (BP), The TJX Companies, Inc. (TJX) and UBS Group AG (UBS).

Director of Research

Sheraz Mian

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>>>