Today's Must Read
New Drugs Propel Roche (RHHBY) Amid Biosimilar Competition
Intel (INTC) Rides on AI-based Alliances & Product Rollouts
Thursday, March 12, 2020
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Alibaba Group (BABA), Roche Holding (RHHBY) and Intel (INTC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Alibaba’s shares have outperformed the Zacks Internet Commerce industry over the past six months (+5.1% vs. -0.2%). The Zacks analyst believes that Alibaba’s higher costs associated with new initiatives remain a major concern. Also, uncertain economy and macro headwinds in China are major concerns.
In addition, rising competition from e-commerce players poses a risk. However, the steady improvement in core commerce and strong cloud business remain positives. The company continues to benefit from strong growth in metrics. Further, Alibaba’s strengthening cloud business with its expanding customer base continues to drive its performance.
Its New Retail strategy is also gaining momentum. This is aiding growth in Tmall Import, Hema fresh food grocery business and Intime Department Stores.
Shares of Roche have gained +7.8% over the past year against the Zacks Large Cap Pharmaceuticals industry’s fall of -3.2%. The Zacks analyst believes that Roche’s performance has been impressive, propelled by solid sales of new drugs.
Strong growth of Ocrevus, Perjeta, Tecentriq and Hemlibra countered biosimilar competition for Herceptin, MabThera and Avastin. Particularly, MS drug Ocrevus witnessed strong growth on increased demand. Roche’s dominant position in the breast cancer space continues to boost performance on label expansion of drugs. Also, label expansion of blockbuster immune-oncology drug Tecentriq into additional indications is a positive.
The recent Spark acquisition will boost Roche’s presence in the gene therapy space as well. However, most of the legacy drugs are facing biosimilar competition. Additionally, pipeline setbacks are concerns as well.
Intel’s shares have lost -16.2% over the past three months against the Zacks General Semiconductor industry’s fall of -6.6%. The Zacks analyst believes that Intel is benefiting from strong data-centric growth. Robust mix of high-performance 2nd-Gen Xeon Scalable processors and solid demand from Cloud service providers is expected to drive near-term growth.
The company is also making advancements in the IoT space, courtesy of product introductions and tie ups. Moreover, Intel is witnessing strong momentum for its first 10-nanometer (nm) mobile CPU. The company is planning nine product releases on 10 nm this year.
Further, it is adding 25% wafer capacity across its 14 nm and 10 nm nodes in 2020. Nevertheless, declining PC total addressable market, higher expenses pertaining to 10-nm ramp up and constrained supply amid coronavirus outbreak in China remain concerns.
Other noteworthy reports we are featuring today include Welltower (WELL), Tyson Foods (TSN) and Canadian Natural Resources (CNQ).
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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>>>