Top Analyst Reports for Amgen, TOTAL & Intuit
Wednesday, July 15, 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 Amgen (AMGN), TOTAL (TOT) and Intuit (INTU). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Amgen shares have outperformed the Zacks Biomedical and Genetics industry over the past year (+42.6% vs. +18.9%) and the Zacks analyst expects the momentum to continue on the back of growth products like Prolia, Evenity, Repatha, Aimovig, Otezla and biosimilars that will drive near- to medium-term sales.
Amgen boasts a strong biosimilars portfolio, which can drive long-term growth. Amgen is also progressing with its pipeline while regularly pursuing “external opportunities” such as the acquisition of Otezla and the stake in China's BeiGene. However, pricing and competitive pressure are concerns.
Amgen also expects a significant impact from coronavirus-related business disruption in Q2, which it expects to ease in the second half of 2020. Estimates have gone down slightly ahead of Q2 results. Amgen has a positive record of earnings surprise in the recent quarters.
Shares of TOTAL have lost -28.1% over the past six months against the Zacks Integrated International Oil industry’s fall of -36.8%. The Zacks analyst believes that TOTAL is benefiting from project startups, renewable assets, 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 likely to boost its performance and strengthen operations. However, the company’s operations and profitability can be adversely impacted by the ongoing decline in commodity prices.
TOTAL decided to lower capital expenditure for 2020 by 25% for preserving liquidity. If commodity prices continue to remain choppy, the company might have to resort to further cost management. TOTAL's operations in some politically-troubled regions and increasing competition might affect profitability.
Intuit’s shares have gained +10.8% over the past three months against the Zacks Computer Software industry’s rise of +18.5%. The Zacks analyst believes that Intuit is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues.
The TurboTax Live offering is also driving growth in the Consumer tax business. Solid momentum in the company’s lending product, QuickBooks Capital, remains a positive. Moreover, Intuit’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run.
Nonetheless, Intuit’s near-term prospect looks gloomy as the global lockdown amid the coronavirus crisis has affected small businesses, posing risks to the company’s revenue growth. Additionally, higher costs and expenses due to increased investments in engineering and marketing is likely to continue impacting bottom-line results in the near term.
Other noteworthy reports we are featuring today include Air Products and Chemicals (APD), Applied Materials (AMAT) and Marsh & McLennan (MMC).
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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>>>
Today's Must Read
While Air Products faces headwind from weak volumes in the Americas and EMEA, it should gain from investments in high-return industrial gas projects and productivity actions, per the Zacks analyst.
Per the Zacks analyst, strength in semiconductor equipment and strong customer spending in foundry and logic remain growth drivers.
Per the Zacks analyst, its increasing topline driven by product offerings, geographic expansion and acquisitions has led to significant growth.
Per the Zacks analyst, Deere will likely gain from cost-reduction initiatives and acquisitions.
Per the Zacks analyst, Workday's revenue growth continues to be driven by high demand for its cloud-based HCM and financial management solutions.
Per the Zacks analyst, General Mills' (GIS) is gaining from higher demand due to coronavirus-led stockpiling.
The Zacks analyst is upbeat about Zimmer Biomet's strategic investments in emerging markets over the past few quarters to improve its operational and sales performance.
Per a Zacks analyst, Fortune Brands (FBHS) seems well placed to gain from growth opportunities in segments, especially Plumbing and Doors & Security.
AutoNation's cost cutting efforts, including staffing adjustments and compensation cuts will aid its near-term margins. Further, its focus on digital ramp up will drive sales, per the Zacks analyst.
Per the Zacks analyst, Aaron's witnesses growth on the reopening of Progressive's partner stores, which should get reflected in second-quarter results.
Per the Zacks analyst, Marriott is witnessing dismal Revpar and occupancy rate due to the coronavirus pandemic. Moreover, demand for 2020 continues to be impacted by the same.
Per the Zacks analyst, HealthEquity deals with high level personal data and information that leads to incurrence of significant costs to protect against security breaches.
Per the Zacks analyst, high cost due to higher acquisition and other operating expenses weigh on margin expansion. Also, provision for losses in Mortgage Insurance Business result in lower net income.
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TOTAL S.A. (TOT): Free Stock Analysis Report
Marsh McLennan Companies, Inc. (MMC): Free Stock Analysis Report
Intuit Inc. (INTU): Free Stock Analysis Report
Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
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