Friday, March 12, 2021
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 Netflix (NFLX), Toyota Motor (TM) and AbbVie (ABBV). 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 >>>
Netflix shares have underperformed the Zacks Broadcast Radio and Television industry over the past year (+52.7% vs. +83%). The Zacks analyst believes that Netflix has been benefiting from heavy investments in the production and distribution of localized, foreign-language content.
Higher numbers of originals are expected to aid user-base growth in 2021 despite rising competition from Apple TV+, Amazon prime video, HBO Max, Disney+, Peacock, Discovery+ and TikTok. The company plans to release at least one new original film every week in 2021. User-friendly features like Downloads For You and more efficient Parental Controls are key positives.
The launch of low-priced mobile plans is also expected to expand Netflix’s subscriber base in Asia Pacific. However, Netflix’s leveraged balance sheet and higher streaming obligation is also a concern.
(You can read the full research report on Netflix here >>>)
Shares of Toyota have gained +12.2% in the last six months against the Zacks Foreign Automotive industry’s gain of +29.9%. The Zacks analyst believes that the firm’s sharp focus on electric vehicles (EVs) and driverless cars offer ample growth visibility.
Toyota targets to achieve 40% of its global sales from EVs by 2025 and nearly 70% by 2035. Partnership with Subaru and Mazda is likely to drive Toyota’s electrification plans. Collaboration with Hino, Aurora, Uber and Pony.ai also augur well. Thus, Toyota is viewed as a lucrative bet.
Toyota put up a stellar show in fiscal third quarter 2021, with earnings and sales not just beating estimates but also rising year over year. The upward revision of its fiscal 2021 view is encouraging. The company now projects 2021 operating income at ¥2,000 billion, up from the prior estimate of ¥1,300 billion.
(You can read the full research report on Toyota Motor here >>>)
AbbVie’s shares have gained +3.2% over the past three months against the Zacks Large-Cap Pharmaceuticals industry’s gain of +1.6%. The Zacks analyst believes that AbbVie’s key drug, Humira, continues to see strong demand trends in the United States.
AbbVie has been successful in expanding labels of its cancer drugs, Imbruvica and Venclexta. It has an impressive late-stage pipeline with several early/mid-stage pipeline candidates that have blockbuster potential. Its two new immunology drugs, Skyrizi and Rinvoq, performed beyond expectations in 2020.
Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas. However, sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind. Also, the decline in HCV drug Mavyret’s sales is a concern.
(You can read the full research report on AbbVie here >>>)
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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>>>
Today’s Must Read
EV Push & Strategic Collaborations to Drive Toyota (TM)
AbbVie’s (ABBV) Pipeline Solid; Skyrizi, Rinvoq Shine
Per the Zacks analyst, key Merck drugs are driving sales amid generic competition for several drugs and rising competitive pressure on the diabetes franchise.
AMD Rides on Robust 7 nm Product Portfolio & Partnerships
Per the Zacks analyst, Advanced Micro Devices is benefiting from strong adoption of latest 7 nm based EYPC and Ryzen processors.
Sinopec (SNP) Banks on Sichuan Basin, Refining Weak
Per the Zacks analyst, new oil and gas discoveries in Sichuan and Tarim Basins brighten Sinopec’s (SNP) production outlook.
UBS Group (UBS) Exhibits Cost Control, Low Rates a Concern
Per the Zacks analyst, UBS Group’s cost saving measures to drive operational efficiency are encouraging.
The Zacks analyst expects Walgreens Boots to be consistent with its solid performance within the Pharmaceutical Wholesale arm. Recent expanded financial service tie-ups of the company buoy optimism.
AIG Benefits From Divestitures and Cost Control Measures
Per the Zacks analyst, business streamlining by selling low returning business and focusing on high growth businesses enhances operational capacities. Cost control measures are aiding margins
Masco (MAS) Rides on R&R Activity Amid Higher Input Cost
The Zacks analyst stresses, increased repair and remodeling (R&R) activity have been driving Masco’s revenues over the last few quarters. However, rise in raw material costs is a concern.
Eni (E) to Ride on Exploration Campaign in Offshore Angola
The Zacks analyst believes Eni’s exploration campaign in offshore Angola, which led to several discoveries, to boost cash flows. Moreover, its new GreenIT renewables JV is commendable.
Assurant (AIZ) Gains on Solid Premiums Amid Escalating Costs
Per the Zacks analyst, Assurant is set to grow on solid Global Lifestyle and Global Lifestyle segments, which will drive improvement in earned premiums and fees. However, high costs remain a concern.
Cost-reduction Actions, Restructuring to Aid Ashland (ASH)
Per the Zacks analyst, Ashland’s cost-cutting actions should support its margins. Its restructuring actions have also provided it with a diverse business portfolio focused on high-quality markets.
Rising Expenses, Growing Competition Ail MercadoLibre (MELI)
Per the Zacks analyst, MercadoLibre is hurt by rising expenses related to warehousing, free shipping subsidies and mPOS discounts. Also, intensifying e-commerce competition poses risk.
Twilio’s (TWLO) Profitability To Hurt By Elevated Expenses
Per the Zacks analyst, elevated investment toward enhancing sales capabilities to gain enterprise customers and grab larger market share to weigh on Twilio’s bottom-line results in the near-term.
High Debt & Low Passenger Revenues Ail Gol Linhas (GOL)
The Zacks analyst is concerned about COVID-19 induced dwindling travel demand, which led to significant loss of passenger revenues. Moreover, high debt is also a concern.
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Toyota Motor Corporation (TM): Free Stock Analysis Report
China Petroleum & Chemical Corporation (SNP): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Merck & Co., Inc. (MRK): Get Free Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
AbbVie Inc. (ABBV): Get Free Report
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