Top Analyst Reports for AbbVie, Square & Honda Motor

Original post

Friday, November 13, 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 Inc. (ABBV), Square, Inc. (SQ) and Honda Motor Co., Ltd. (HMC). 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 >>>
 

AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry in the year to date period (+10.2% vs. -0.1%). The Zacks analyst believes that AbbVie’s key drug, Humira is seeing strong demand trends in the United States.

AbbVie has been successful in expanding labels of its cancer drugs, Imbruvica and Venclexta. It gained approvals for two new drugs with significant potential, Skyrizi and Rinvoq, in 2019. Both are off to a strong start. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.
 

However, sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind.  Also, the decline in hepatitis C virus (HCV) drug Mavyret’s sales is a concern.
 

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

Shares of Square have gained +183.4% over the past one-year period against the Zacks Internet – Software industry’s rise of +85.7%. The Zacks analyst believes that Square’s comprehensive commerce ecosystem, accelerated business growth and entry into bitcoin space remain major positives.

Notably, strong momentum in online channels and growing card-not-present GPV are expected to be tailwinds. Moreover, robust online products, such as Square Online Store, Invoices, Virtual Terminal and eCommerce API are expected to accelerate the GPV growth in the near term.
 

However, uncertainties related to the COVID-19 pandemic remain concerns. Higher investments and increasing product development expenses might hurt margins. Intensifying competition and foreign exchange fluctuations remain headwinds.
 

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

Honda Motor shares have underperformed the Zacks Automotive – Foreign industry in the year to date period (-1.6% vs. +12.8%). The Zacks analyst believes that in anticipation of a slowdown in India and North America, the company expects sales to decline year over year in fiscal 2021.

With the coronavirus pandemic wreaking havoc on the auto industry, sales and earnings of Honda is likely to suffer a major blow, going forward. Further, high capex to develop advanced technologies may also limit its cash flows.
 

However, the firm’s frequent collaborations with companies like General Motors and Hitachi, among others, are expected to expand business and bolster prospects. Its healthy balance sheet, improving cash flows and investor-friendly moves are other positives.
 

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

Other noteworthy reports we are featuring today include Canadian Pacific Railway Limited (CP), Roper Technologies, Inc. (ROP) and Wayfair Inc. (W).
 

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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

Steady Investment Aids Ameren Corp. (AEE), Regulations Hurts

Per the Zacks Analyst, it plans to invest $16 billion over 2020-2024 period in regulated operations to boost earnings.

Cheniere Energy’s (LNG) Gas Export Dominance Bodes Well

The Zacks analyst likes Cheniere’s competitive advantage of being the first and dominant natural gas exporter in the U.S. market but is concerned over the huge debt load of $31 billion.

Automotive revenue aid Canadian Pacific (CP), Debts ail

The Zacks analyst is optimistic about strong grain movement and rising automotive revenue. However, high debt is a concern.

Loan Growth Supports M&T Bank (MTB), Rising Costs a Woe

Per the Zacks analyst, M&T Bank’s top line gets support from increasing loans and deposits balances.

Robust Adoption of Fox News & FBN Aids Fox (FOXA) Prospects

Per the Zacks analyst, Fox is benefiting from robust adoption of Fox News and Fox Business Network (FBN). Higher pricing and stronger ratings at FOX News Media drove Cable advertising revenues.

International Strength Drives Wayfair (W); Expense A Concern

The Zacks analyst believes that Wayfair’s strong retail business along with its efforts to expand in international markets are positives.

Network Software Unit to Aid Roper (ROP), Demand Stays Weak

Per the Zacks analyst, robust network software & systems unit on the back of business resiliency will drive Roper’s near-term results.

New Upgrades

Sturdy Comps Run to Fuel Grocery Outlet’s (GO) Top Line

Per the Zacks analyst, rise in average transaction size has been supporting Grocery Outlet’s comparable-store sales growth. In third-quarter 2020, comps increased 9.1% year over year.

Brand Reputation & Rising Parts Revenue to Aid PACCAR (PCAR)

PACCAR’s leading brands and consistent product quality along with its persistent growth in the less-cyclical aftermarket parts are likely to aid the firm’s top line in future, per the Zacks analyst.

Rebound in Procedure Volumes Aids STERIS (STE) Amid Pandemic

The Zacks analyst is upbeat about higher demand for STERIS’ medical device offerings following a rebound in procedure volumes. Robust sales of COVID-19-related products and services also buoy optimism

New Downgrades

Lower Enrollment at Strayer Hurts Strategic Education (STRA)

Per the Zacks analyst, Strategic Education’s Strayer segment is facing lower demand due to higher unemployment levels caused by COVID-19-led restrictions.

Escalating Costs, Higher Cat Losses Hurt RLI Corp. (RLI)

Per the Zacks Analyst, the company’s exposure to catastrophe losses induce volatility in its underwriting results. High costs can put margins under pressure.

Juniper (JNPR) Plagued by COVID-19 Induced Supply-Chain Woes

Per the Zacks analyst, supply-chain headwinds, triggered by uncertain macro environment & weak investment patterns among carriers due to virus outbreak, are likely to affect Juniper’s growth momentum.

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Wayfair Inc. (W): Free Stock Analysis Report
 
Square, Inc. (SQ): Free Stock Analysis Report
 
Roper Technologies, Inc. (ROP): Free Stock Analysis Report
 
Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report
 
Canadian Pacific Railway Limited (CP): Free Stock Analysis Report
 
AbbVie Inc. (ABBV): Free Stock Analysis Report
 
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