Top Stock Reports for Tesla, Adobe & Merck

Thursday, December 23, 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 Tesla, Inc. (TSLA), Adobe Inc. (ADBE), and Merck & Co., Inc. (MRK). 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 >>>

Shares of Tesla have outperformed the Zacks Domestic Automotive industry over the past year (+52.4% vs. +19.5%). The Zacks analyst believes that robust demand for Models 3 and Y has been buoying Tesla's revenues. TSLA achieved record levels of production and deliveries, despite a chip crunch, in the third quarter of 2021.

Tesla has also started ramping up volumes of Models S and X. China, being the biggest EV market, means Tesla's Shanghai factory is buoying its revenue prospects. Steadily increasing automotive as well as energy generation and storage revenues have also been boosting earnings prospects.

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

Adobe shares have gained +12.7% in the year to date period against the Zacks Software industry’s gain of +39.1%; however, things seem to be improving. The Zacks analyst believes that Adobe’s Creative Cloud, Document Cloud and Adobe Experience Cloud products drove top-line growth in the fiscal fourth quarter.

Growth in emerging markets, robust online video creation demand, solid adoption of Acrobat and improving average revenue per user are some of the major tailwinds. Adobe’s dominant market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and strong Workfront momentum are likely to boost its prospects in the quarters ahead. Low end-market demand and high acquisition expenses remain as concerns though.

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

Shares of Merck have gained +1.6% in the last six months against the Zacks Large Cap Pharmaceuticals industry’s gain of +18.2%, but things are likely to improve. The Zacks analyst believes that key drugs like Keytruda, Lynparza and Bridion have been driving Merck’s sales.

Continued uptake in lung cancer and increasing usage in other cancer indications have been driving Keytruda’s sales. Animal health and vaccine products remain as core growth drivers. Generic competition for several of Merck’s drugs as well as rising competitive pressure, primarily on the diabetes franchise, remain as major concerns though.

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

Other noteworthy reports we are featuring today include Edwards Lifesciences Corp. (EW), Enbridge Inc. (ENB) and Norfolk Southern Corp. (NSC).

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>>>

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.