Top Research Reports for Merck, ServiceNow & Blackstone
Tuesday, February 20, 2024
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 Merck & Co., Inc. (MRK), ServiceNow, Inc. (NOW) and Blackstone Inc. (BX). 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 >>>
Merck shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (+18.2% vs. +13.7%) reflecting favorable demand momentum for products like Keytruda and Gardasil. With continued label expansion into new indications, particularly earlier-stage launches, Keytruda is expected to see continued growth.
Animal health and vaccine products are core growth drivers. Merck boasts a strong cancer pipeline, including Keytruda, which should drive long-term growth. Merck is investing in M&A activity to strengthen its pipeline.
However, generic competition for several drugs and rising competitive pressure, mainly on the diabetes franchise, will continue to be overhangs on the top line. There are concerns about Merck’s ability to grow its non-oncology business ahead of Keytruda’s loss of exclusivity later in the decade.
(You can read the full research report on Merck here >>>)
Shares of ServiceNow have outperformed the Zacks Computers - IT Services industry over the past six months (+37.9% vs. +30.9%). The company has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. It had 1897 total customers with more than $1 million in annual contract value at the end of the fourth quarter.
ServiceNow has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. Security and risk had a terrific quarter with 12 of the top 20 deals, out of which nine deals were more than $1 million. Customer, Employee and Creator workflows each had double-digit deals over $1 million.
It is benefiting from strong demand for its generative AI-powered solutions with the launch of Vancouver. Nevertheless, ServiceNow is suffering from high inflation, stiff competition, and challenging macro-economic environment.
(You can read the full research report on ServiceNow here >>>)
Blackstone shares have outperformed the Zacks Financial - Miscellaneous Services industry over the past six months (+31.6% vs. +17.7%). The company’s strong revenue mix, global footprint and solid assets under management (AUM) balance are expected to keep aiding its financials. Its robust fund-raising ability will support top-line growth.
Yet, elevated consolidated expenses are likely to hamper Blackstone’s bottom-line growth in the near term. Also, lower chances of sustainability of the company's capital distribution activities are worrisome. The company has been facing substantial outflows in some of its funds of late, which are likely to hurt its financials.
(You can read the full research report on Blackstone here >>>)
Other noteworthy reports we are featuring today include Marsh & McLennan Companies, Inc. (MMC), Gilead Sciences, Inc. (GILD) and Diageo plc (DEO).
Director of Research
Sheraz Mian
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
Keytruda to Remain Merck's (MRK) Key Top-Line Driver
Growing Customer Base & Partnerships Aid ServiceNow (NOW)
Fund-Raising Ability Aids Blackstone (BX), High Costs Ails
Featured Reports
Rising Revenues Aid Marsh & McLennan (MMC) Amid High Costs
Diverse product offerings & solid client retention will boost Marsh & McLennan's top line, as per the Zacks analyst. However, increasing expenses are likely to hamper margins.
Biktarvy, Oncology Fuel Gilead (GILD) Amid Pipeline Setbacks
Per the Zacks analyst, strong performance from flagship HIV therapy Biktarvy and contribution from the oncology franchise boost Gilead. However, the recent pipeline setbacks weigh on shares.
Productivity Initiatives to Aid Diageo (DEO) Amid Inflation
Per the Zacks analyst, Diageo is on track with its commitment to deliver $2 billion of productivity savings over the next three years. Productivity cost savings aided margins in 1H24.
Robust Public Sector Demand Aids Vulcan (VMC), High Cost Ail
Per the Zacks Analyst, Vulcan is benefiting from robust public sector demand and pricing growth. However, low residential demand and uncertain energy costs are a concern.
Overseas Growth Aids DaVita (DVA) Amid Stiff Competition
The Zacks analyst is upbeat about DaVita's steady expansion in the international markets via acquisitions of dialysis centers despite its operation in a highly competitive market.
Iridium's (IRDM) Performance Gains from Higher Subscribers
Per the Zacks analyst, Iridium's performance is gaining from increasing subscribers. The company expects engineering and support revenue to benefit owing to the space development agency contract
Allegiant's (ALGT) Fleet-Upgrade Efforts Aid, Costs Ail
Per the Zacks analyst, Allegiant Travel's fleet modernization program is praiseworthy. High labor costs are, however, hurting the bottom line.
New Upgrades
Honda (HMC) Set to Ride on Cost Containment Initiatives
The Zacks analyst is optimistic about Honda's efforts to control costs and optimize production capacity, thereby generating savings that can be directed toward more profitable opportunities.
Strong Clientele & Bookings Aids GoDaddy's (GDDY) Prospects
Per the Zacks analyst, GoDaddy benefits from strong bookings primarily driven by strong customer additions and price increases in various domains.
Rising Money Market Assets Aid Federated's (FHI) AUM Growth
Per the Zacks analyst, the continued strategic acquisition of money market assets will aid Federated's AUM growth. Manageable debt levels and sustainable capital distributions are other positives.
New Downgrades
Stiff Competition and Regulations Ail Devon Energy (DVN)
Per the Zacks analyst, Devon (DVN) results likely to be impacted by competition it faces to secure drilling rights and acquire properties. New regulations can increase cost and lower profitability.
Nabors (NBR) Weighed Down by Massive Debt Burden
The Zacks analyst believes that Nabors Industries' high debt-to-capitalization of 82% is a concern, as it restricts the company's financial freedom to tap into growth opportunities.
Cenovus (CVE) to Suffer From Halting Crude Price Hedging
Per the Zacks analyst, Cenovus' decision to cease crude price hedging leaves it more vulnerable to crude price declines than competitors with hedge protection.
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Blackstone Inc. (BX) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
