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Top Stock Reports for Facebook, Adobe & Amgen

Sheraz Mian

Monday, June 22, 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 Facebook (FB), Adobe Systems (ADBE) and Amgen (AMGN). 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 >>>

Facebook’s shares have outperformed the S&P 500 over the past year (+24% vs. +5.1%). The Zacks analyst believes that Facebook is benefiting from growth in Instagram Stories and Feed, and expanding user base in the Asia Pacific.

The company helped people connect during the coronavirus pandemic. Notably, voice and video calling more than doubled on Messenger and WhatsApp. The launch of Messenger Rooms for video call, which can accommodate 50 people, and WhatsApp video support for up to eight users are noteworthy in this regard. Further, the GIPHY buyout will boost user engagement.

However, Facebook expects ad-sales to be hurt by weakness in travel and automotive industry. The company didn’t provide any specific revenue guidance for the second quarter of 2020 as well as the full year. Moreover, higher operating expense is expected to dent the operating margin in 2020 due to sluggish revenue growth.

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

Shares of Adobe have gained +30.1% over the past six months against the Zacks Software industry’s rise of +17.2%. The Zacks analyst is optimistic about Adobe’s market position, compelling product lines, solid adoption of Creative Cloud and Adobe marketing cloud.

The company is benefiting from strong demand for its creative products. Its Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Further, rising subscription revenues and solid momentum across the mobile apps are major positives.

Additionally, growth in emerging markets, robust online video creation demand and improving average revenue per user are tailwinds. However, lower end-market demand and exposure to Europe remain overhangs. High acquisition expenses do not bode well for margin expansion.

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

Amgen’s shares have gained +28.4% over the past three months against the Zacks Biomedical and Genetics industry’s rise of +35.3%. The Zacks analyst believes that growth products like Prolia, Evenity, Repatha, Aimovig, Otezla and biosimilars will drive sales this year.

However, increasing competition for its legacy products will continue to hurt 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.

Amgen also expects several important clinical data readouts from its innovative pipeline in 2020. 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.  

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

Other noteworthy reports we are featuring today include Lowe's (LOW), Regeneron Pharmaceuticals (REGN) and TJX Companies (TJX).

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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

Expanding User Base, Instagram Strength Aid Facebook (FB)

Adobe (ADBE) Counts on Creative Strength; Expenses A Concern

Amgen (AMGN) Boasts a Strong Branded/Biosimilars Pipeline

Featured Reports

Lowe's (LOW) Omnichannel, Pro Customer Strategy to Lift Sales

Per the Zacks analyst, Lowe's pro customer strategy, omni-channel efforts and merchandising initiatives may help boost sales.

Eylea, Dupixent Fuel Regeneron (REGN), Competition Worrisome

Per the Zacks analyst, label expansions of key drugs like Eylea and Dupixent boost Regeneron. Its efforts to develop REGN-COV2 for COVID-19 are encouraging but competition is a concern.

Coronavirus-Led Store Closures Hurt TJX Companies (TJX)

Per the Zacks analyst, TJX Companies is bearing the brunt of coronavirus-led temporary store closures across U.S. and Europe among other regions.

ConocoPhillips (COP) Banks on Oil-Rich Eagle Ford Acres

The Zacks analyst expects ConocoPhillips to gain from unconventional oil-resources in the prolific Eagle Ford shale play.

Growth Projects Aid Newmont (NEM) Amid Cost Woes

While the company faces headwind from high production costs, it should gain from investment in its growth projects and efforts to improve efficiency, per the Zacks analyst.

Norfolk Southern (NSC) Volume Woes a Bane, Cost Curbs a Boon

The Zacks analyst is pleased with the improvement in operating ratio owing to the company's efforts to control costs.

Higher Flows Aid Blackstone (BX), Dividend Uncertainty a Woe

Per the Zacks analyst, Blackstone's solid fund raising ability during tough operating backdrop will continue to support revenues. However, a volatile earnings trend makes dividend payments uncertain.

New Upgrades

Murphy USA (MUSA) to Gain from Proximity to Walmart Stores

The Zacks analyst believes that the proximity of Murphy USA's fuel stations to Walmart supercenters helps the company to leverage the strong and consistent traffic that these stores attract.

Cost Cuts, Lower Alumina Costs Aid Century Aluminum (CENX)

Per the Zacks analyst, Century Aluminum is likely to gain from its actions to reduce operating costs. Lower realized alumina cost is also expected to support the company's margins.

Robust Network Solutions Drive ADTRAN's (ADTN) Performance

Per the Zacks analyst, robust networking solutions, accretive subscriber base and differentiated product offerings along with augmented geographic footprint drives ADTRAN's performance.

New Downgrades

Supply Chain Disruptions & Weak Demand Hurt Keysight (KEYS)

Per the Zacks analyst, coronavirus-related supply chain disruptions and sluggish demand in automotive sector are major headwinds for Keysight.

Low Demand in Printing Segment Ails International Paper (IP)

Per the Zacks analyst, decline in commercial printing due to the pullback in print advertising and lower paper demand in schools and offices amid the COVID-19 crisis will impact the company's results.

Coronavirus Impacts Concern Ralph Lauren's (RL) Investors

Per the Zacks analysts, Ralph Lauren is likely to be hurt by the coronavirus-led uncertainties owing to store closures in North America since Mar 18 along with earlier shutdowns in China and Europe.

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The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
Lowes Companies, Inc. (LOW) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
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