Prime Analysis Studies for Novo Nordisk, Amgen & ADP – November 16, 2022

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Wednesday, November 16, 2022

The Zacks Analysis Day by day presents the perfect analysis output of our analyst crew. At this time’s Analysis Day by day options new analysis experiences on 16 main shares, together with Novo Nordisk A/S (NVO), Amgen Inc. (AMGN) and Computerized Knowledge Processing, Inc. (ADP). These analysis experiences have been hand-picked from the roughly 70 experiences printed by our analyst crew immediately.

You may see all of immediately’s analysis experiences right here >>>

Novo Nordisk’s shares have gained +1.4% over the year-to-date foundation towards the Zacks Giant-Cap Prescription drugs business’s achieve of +4.3%. The corporate’s promising diabetes drug, Ozempic, is off to a stable begin since its launch. The drug stays the expansion engine for the corporate.

The launch of Rybelsus additionally appears to be like spectacular. Novo Nordisk has one of many broadest diabetes portfolios within the business. Drug gross sales have been gaining and sustaining momentum. Label growth of the prevailing medicine is prone to enhance gross sales.

Nonetheless, decrease realized costs in america, lack of exclusivity for merchandise and stiff competitors have an effect on gross sales. Gross sales are additionally being negatively impacted by the COVID-19 pandemic. The availability challenges for Wegovy have hurts the inventory. The patent expiry on among the merchandise in Novo Nordisk’s portfolio stays a woe.

(You may learn the complete analysis report on Novo Nordisk right here >>>)

Amgen’s shares have outperformed the Zacks Medical – Biomedical and Genetics business over the previous 12 months (+37.8% vs. -23.5%). The corporate’s key medicine like Prolia, Repatha and Xgeva are driving gross sales. New medicine Lumakras and Tezspire, are off to an encouraging begin.

The acquisition of ChemoCentryx, if efficiently closed, will add a strategic new development asset in Tavneos to Amgen’s portfolio. Amgen boasts a robust biosimilars portfolio with potential new merchandise anticipated to drive long-term development.

Nonetheless, elevated pricing headwinds and aggressive stress are hurting gross sales of a lot of Amgen’s legacy merchandise together with some biosimilars. The IRS tax litigation is an overhang on Amgen shares. Estimates have declined barely forward of Q3 outcomes. Amgen has a constructive report of earnings shock in latest quarters.

(You may learn the complete analysis report on Amgen right here >>>)

Shares of Computerized Knowledge Processing have outperformed the Zacks Outsourcing business over the previous 12 months (+7.0% vs. -2.0%). The corporate continues to get pleasure from a dominant place within the human capital administration market by strategic buyouts like Celergo, WorkMarket, International Money Card and The Marcus Buckingham Firm.

It has a robust enterprise mannequin, excessive recurring revenues, good margins, sturdy consumer retention and low capital expenditure. Additional, it continues to innovate, enhance operations and spend money on its ongoing transformation efforts.

Nonetheless, ADP faces vital competitors in every of its product traces. Failure to stay technologically up to date may cut back the demand for its options and providers. Rising bills on account of funding in transformation efforts stays a priority. Excessive debt stays a priority.

(You may learn the complete analysis report on Computerized Knowledge Processing right here >>>)

Different noteworthy experiences we’re that includes immediately embody Equinor ASA (EQNR), Duke Vitality Corp. (DUK), and Illinois Software Works Inc. (ITW).

Mark Vickery
Senior Editor

Word: Sheraz Mian heads the Zacks Fairness Analysis division and is a well-regarded professional of combination earnings. He’s steadily quoted within the print and digital media and publishes the weekly Earnings Tendencies and Earnings Preview experiences. In order for you an e-mail notification every time Sheraz publishes a brand new article, please click on right here>>>

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