Today's Must Read
Accenture (ACN) Continues to Benefit From Acquisitions
Production Boost from Startups, Cost Savings Aid TOTAL (TOT)
Tuesday, February 11, 2020
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 (ABBV), Accenture (ACN) and TOTAL (TOT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
AbbVie’s shares have outperformed the Zacks Large-Cap Pharmaceuticals industry in the past six months (+46.8% vs. +15.9%). The Zacks analyst believes that AbbVie’s key drug, Humira is performing well based on strong demand trends despite new competition.
AbbVie has been successful in expanding approvals for its cancer drugs, Imbruvica and Venclexta. Moreover, it has an impressive late-stage pipeline. It gained approvals for two new drugs with significant potential, Skyrizi (risankizumab) and Rinvoq, in 2019. Both are off to a strong start.
The acquisition of Allergan, if successful, should diversify AbbVie’s revenue base and accelerate its non-Humira business. However, sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind. Also, the decline in HCV sales is a concern.
Shares of Accenture have gained +35.7% over the past year against the Zacks Consulting industry's rise of +27.1%. The Zacks analyst believes that Accenture has been steadily gaining traction in its outsourcing and consulting businesses.
The company has been strategically enhancing its cloud and digital marketing suite through acquisitions and partnerships. The company’s strong operating cash flow has helped it reward its shareholders in the form of dividends and share repurchases, and pursue opportunities in areas that show true potential. Accenture is currently a global leader in the Salesforce implementation service space.
However, Accenture continues to face pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys. Global presence exposes Accenture to foreign currency exchange rate fluctuations. Buyout-related integration risks is a concern.
TOTAL’s shares have lost -9.7% over the past three months against the Zacks Integrated International Oil industry's fall of -11.7%. The Zacks analyst believes that company has been benefiting from startups, renewable projects, its LNG portfolio and expanding upstream portfolio that has above industry-average exposure to faster-growing hydrocarbon producing regions.
Streamlining the asset portfolio and syncing the same with long-term objectives are going to boost its performance and strengthen operations. Cost-saving initiatives are also aiding it to boost margins.
However, TOTAL's operations in some politically-troubled regions and increasing competition might affect profitability. Due to its global presence, the company is exposed to risks associated with pursuing business abroad.
Other noteworthy reports we are featuring today include Amazon.com (AMZN), Enbridge (ENB) and Intuit (INTU).
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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>>>