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Top Analyst Reports for Novartis, Duke Energy & Boston Scientific

·6-min read

Friday, July 29, 2022
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 Novartis AG (NVS), Duke Energy Corporation (DUK), and Boston Scientific Corporation (BSX). 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 >>>

Novartis shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+21.0% vs. -3.0%). The company’s second quarter performance was good on improvement in the lagging Sandoz business and cardiovascular drug Entresto’s momentum.  Sandoz's performance was driven by growth in Europe on both launches and the recovery of the healthcare systems.

Consequently, the company also raised the full-year guidance for Sandoz. Drugs like Cosentyx, Entresto, Kesimpta, Zolgensma, Kisqali and Leqvio should continue to fuel growth and offset the impact of generic competition. The launch of additional drugs like Pluvicto, Piqray, Leqvio and Mayzent, and the label expansion of key drugs should also boost performance further.

The pipeline progress is impressive, and the company has some promising candidates. However, generic competition for key drugs and pipeline setbacks pose concerns.

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

Duke Energy shares have outperformed the Zacks Utility - Electric Power industry over the year-to-date basis (+5.8% vs. +2.3%). The company is a premier utility service provider that invests heavily in infrastructure and expansion projects. During the 2022-2026 period, it projects to spend the capital of $63 billion, while $130 billion over the next decade.

It has lowered its carbon emissions by 44% since 2005 and is now expanding its 2050 net-zero goals to include Scope 2 and certain Scope 3 emissions. It expects a projects load growth to increase nearly 1.5% in 2022. Yet, its ability to achieve a net-zero target by 2050 at a cost-effective price could be at risk due to higher technological resources prices.

Also, the fluctuating energy prices may impact its results. A comparative analysis of the its trailing 12-month Enterprise Value/Sales ratio shows a gloomy picture that may concern investors.

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

Boston Scientific shares have declined -9.7% over the past year against the Zacks Medical - Products industry’s decline of -29.0%. The company’s mounting costs and expenses are putting pressure on its margins. The ongoing macro-environment challenges related to increasing freight costs and higher direct labor wages continue to hamper business. Unfavorable foreign exchange deters growth. The upper end of the full-year adjusted EPS guidance has been reduced increasing concerns.

However, Boston Scientific ended the second quarter of 2022 on a bullish note with adjusted earnings and revenues surpassing the Zacks Consensus Estimate. The company registered a year-over-year improvement in organic sales, indicating a strong rebound in the legacy business from the pandemic mayhem. Organic revenues at each of its core business and geographies were up. The raised 2022 organic revenue guidance looks promising.

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

Other noteworthy reports we are featuring today include Norfolk Southern Corporation (NSC), Centene Corporation (CNC), and Cadence Design Systems, Inc. (CDNS).

Sheraz Mian
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>>>

Today's Must Read

Cosentyx, Entresto Fuel Novartis (NVS) Amid Competition

Solid Investments Aid Duke Energy (DUK), Weak Solvency Woes

New Buyouts Aid Boston Scientific (BSX), Core CRM Grows

Featured Reports

Dividends Lift Norfolk Southern (NSC) Despite Cost Woes
The Zacks analyst is impressed with the company's efforts to pay out dividends even in the current uncertain scenario. High costs due to elevated oil price are, however, stunting bottom-line growth.

Centene (CNC) Rides on Growing Revenues Amid Rising Costs
Per the Zacks analyst, solid Medicaid business, several contract wins and acquisitions continue to drive the company's revenues. However, elevated expenses remain a concern.

Energy Drinks Category Aids Growth at Monster Beverage (MNST)
Per the Zacks analyst, Monster Beverage is experiencing continued strength in its energy drinks category driven by its Monster Energy brand. This is likely to continue throughout 2022.

United Rentals (URI) Rides on Buyouts Amid Supply Chain Woes
Per the Zacks analyst, United Rentals gains from accretive acquisitions and solid end-market demand. However, unprecedented supply-chain disruptions are headwinds.

Growth Projects, Kirkland Buyout Aid Agnico Eagle (AEM)
Per the Zacks analyst, the company will benefit from investment in growth projects to expand output and its acqusition of Kirkland Gold amid headwinds from higher costs.

Ecolab (ECL) Continues to Gain From its Business Strength
The Zacks analyst is upbeat about Ecolab's strength in its business despite its operation in a stiff competitive space.

Uber (UBER) Rides on Delivery Business Amid Rising Expenses
The Zacks Analyst likes Uber's efforts to expand its Delivery operations in response to the surge in business. However rising costs and expenses are concerning as they pose a threat to its bottomline

New Upgrades

Cadence (CDNS) Benefits from Product Portfolio & Acquisitions
Per the Zacks analyst, Cadence's performance is gaining from robust demand for the company's diversified product portfolio. Synergies from recent acquisitions also bode well.

Higher Rates, Loan Demand to Aid East West Bancorp (EWBC)
Per the Zacks analyst, steady rise in loan demand, rising interest rates, a strong balance sheet and liquidity position will support East West Bancorp. Its capital deployments are sustainable.

Corcept (CORT) Rides High on Robust Korlym Sales Performance
Per the Zacks analyst, solid performance of its approved drug, Korlym, has fueled growth for Corcept, and should be a top-line booster. The company's pipeline progress has been encouraging as well.

New Downgrades

Crestwood (CEQP) to Suffer From Rising Operation Expenses
The Zacks analyst is worried about Crestwood's rising operation and maintenance expenses limiting earnings. Also, lower cash-generating abilities show weakness in the partnership's operations.

Logitech (LOGI) Hurt by Soft Demand & Higher Component Costs
Per the Zacks analyst, waning pandemic-led demand for peripherals and accessories will hurt Logitech's sales in the near-term while elevated component costs might weigh on profitability.

Soft Demand & Lower Lease Renewal Rate Ails Aaron's (AAN)
Per the Zacks analyst, Aaron's weak demand stemming from continued inflation as well as lower lease portfolio size and lease renewal rates are likely to dent second half 2022 performance.

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Novartis AG (NVS) : Free Stock Analysis Report
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
Centene Corporation (CNC) : Free Stock Analysis Report
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