Thursday, November 7, 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 Amazon.com, Inc. (AMZN), The Procter & Gamble Co. (PG) and Abbott Laboratories (ABT), as well as a micro-cap stock NVE Corp. (NVEC). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 >>>

Amazon.com shares have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+44.1% vs. +34.0%). The company’s third-quarter results were driven by Prime and AWS momentum. The stock has outperformed its industry in the year-to-date period. Strengthening AWS services portfolio and its growing adoption rate contributed well to AWS performance. 

Ultrafast delivery services and expanding content portfolio were beneficial. Strengthening relationship with third-party sellers was a positive. Robust advertising business contributed well. Amazon’s expanding global presence remains a positive. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. 

Deepening focus on generative AI is a major plus. The company issued positive Q4 2024 guidance fueling investor enthusiasm. However, macroeconomic challenges remain headwinds. Rising transportation and fulfillment center costs are concerns.

(You can read the full research report on Amazon.com here >>>)

Shares of Procter & Gamble have gained +10.8% over the year-to-date period against the Zacks Soap and Cleaning Materials industry’s gain of +15.9%. The company has been gaining from a strategy that focuses on sustainability and adaptability, responding to the evolving demands of consumers and society. 

Procter & Gamble has been focused on productivity and cost-saving plans to boost margins. This led to the bottom line beating the consensus mark for the ninth consecutive quarter in first-quarter fiscal 2025. PG reiterated its view for fiscal 2025. PG estimates organic sales to grow 3-5% for the fiscal year versus our estimate of a 3.1% growth. 

However, PG has been witnessing headwinds related to the market issues in Greater China, geopolitical tensions and financial impacts from currency volatility. PG’s fiscal 2025 EPS view includes an after-tax headwind of $200 million related to unfavorable commodity costs and adverse currency.

(You can read the full research report on Procter & Gamble here >>>)

Abbott’s shares have gained +6.4% over the year-to-date period against the Zacks Medical - Products industry’s gain of +15.1%. The company’s pipeline is generating new growth prospects to help sustain the positive momentum and contribute to the strong growth projection in 2024. Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business. 

EPD's impressive performance stems from the company’s unique business model. The company is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales, beginning 2025. Freestyle Libre CGM device is also on a great trajectory. 

Within Nutrition, despite softness in global pediatric arm, Abbott is regaining market share banking on strong Adult Nutrition business. Yet, the significant runoff of COVID-19 testing-related sales is hurting Abbott’s Diagnostics growth. Tough macro conditions also pose a concern.

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

Shares of NVE have gained +21.3% over the year-to-date period against the Zacks Electronics - Semiconductors industry’s gain of +44.8%. This microcap company with market capitalization of $397.26 million pivot to direct sales lifted its gross margin year over year to 86% in second-quarter fiscal 2025, enhancing profitability and resilience in slowdowns. 

Contract R&D revenues, largely from a defense contract, surged 3,950% year over year, creating a high-margin stream with potential defense sales. A $4-$5 million investment in advanced packaging strengthens self-sufficiency and growth capacity. Innovations like the ALT521-10E sensor help the company tap into the industrial and medical markets. 

Yet, product sales dropped 14% year over year due to distributor inventory buildup and weak demand, pressuring revenues. Rising R&D and SG&A expenses, combined with cash declines from capex and dividends, squeeze profits. Dividend sustainability concerns grow amid profit pressures. A higher tax rate and distributor inventory risks could further impact earnings.

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

Other noteworthy reports we are featuring today include DoorDash, Inc. (DASH), ONEOK, Inc. (OKE) and Baker Hughes Co. (BKR).

Mark Vickery
Senior Editor

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>>>