Back to top

Research Daily

Wednesday, November 13, 2019

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 Microsoft (MSFT), Novartis (NVS) and Novo Nordisk (NVO). 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 >>>

Microsoft’s shares have outperformed the S&P 500 year to date (44.8% vs. 23.7%). The Zacks analyst believes that Microsoft is benefiting from growing user base of its different applications like Office 365 commercial, Dynamics, Outlook mobile and Teams.

Moreover, Azure’s expanding customer base is a key catalyst. Microsoft’s gaming segment is performing well, primarily driven by a combination of Xbox Live, Game Pass subscriptions and Mixer, which are driving user engagement. Further, acquisitions like PlayFab and GitHub expand Microsoft’s total addressable market (TAM) and penetration.

Additionally, latest contract wins from the Department of Defense remain notable. However, projections of a moderating growth rate in commercial cloud gross margin, and OEM Pro and Windows commercial businesses is a headwind. Moreover, stiff competition from the likes of Google, Apple, and Sony is a woe.

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

Shares of Novartis have gained 10.6% in the past six months against Zacks Large-Cap Pharmaceuticals industry’s rise of 6.2%. The Zacks analyst believes that Novartis’ beat on earnings and sales in the third quarter, driven by the solid performance of key drugs like Cosentyx and Entresto, contribution from Zolgensma, and the Xiidra acquisition.

The increase in guidance was encouraging as well. New launches like Piqray and Beovu should further boost the company’s performance in the upcoming quarters. A strong uptake is expected particularly from Beovu as it is the first FDA approved anti-VEGF to offer greater fluid resolution as compared to Eylea.

However, price erosion in the United States has adversely impacted the generic business. Of late, Novartis has restructured its business and spun off the eye-care unit, Alcon, to become a core drug-focused company. However, pipeline setbacks and generic competition for key drugs are concerns.

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

Novo Nordisk’s shares have gained 13.4% over the past three months against the Zacks Biotech industry’s rise of 7.4%. The Zacks analyst believes that the company has one of the broadest diabetes portfolios in the industry.

A solid performance from Tresiba, Victoza, Ozempic, Xultophy and Saxenda drove the company’s sales in the year so far. Label expansion of Victoza continues to boost performance. Ozempic, once-weekly GLP-1, continues to gain market share.

The FDA recently approved semaglutide in tablet form under the brand name, Rybelsus. Approval of new drugs will further broaden the company’s portfolio. Shares of the company have outperformed the industry year to date.

However, lower realized prices in the Unites States, loss of exclusivity for products in hormone replacement therapy and intensifying competition within the diabetes and biopharmaceuticals markets will adversely impact sales.

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

Other noteworthy reports we are featuring today include VMware (VMW), Tesla (TSLA) and General Dynamics (GD).

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

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>>>

Featured Reports

New Upgrades

New Downgrades