Top Research Reports for Netflix, Exxon Mobil & Amgen

Sheraz Mian

Thursday, July 02, 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 Netflix (NFLX), Exxon Mobil (XOM) 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 >>>

Netflix’s shares have outperformed the Zacks Broadcast Radio and Television industry over the past year (+25.7% vs. +3.1%). The Zacks analyst believes that regional programming focus has expanded the streaming giant's user base. The launch of low-priced mobile plans in India, Indonesia, Malaysia, Philippines and Thailand is also expected to expand the subscriber base in the Asia Pacific.

Netflix is dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content.

However, Netflix expects viewing and subscriber growth to decline once the coronavirus-related lockdowns and movement restrictions are lifted. Moreover, absence of new seasons for popular shows like Money Heist and Stranger Things is expected to affect subscriber growth in the third and fourth quarter of 2020 amid increasing competition. 

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

Shares of Exxon Mobil have lost -37.1% over the past six months against the Zacks Integrated International Oil industry’s fall of -39.5%. The Zacks analyst believes that the integrated firm also has a strong balance sheet with significant low debt exposure. This will help the firm weather the low commodity pricing environment.

ExxonMobil’s bellwether status in the energy space, optimal integrated capital structure that has historically produced industry-leading returns and management’s track record of capex discipline across the commodity price cycle makes it a relatively lower-risk energy sector play. Notably, the company estimates gross recoverable resource of more than 8 billion oil-equivalent barrels from offshore Guyana discoveries.

However, strict social-distancing measures, taken to combat the coronavirus pandemic, have dented demand for the company’s refined petroleum products. Outlook for ExxonMobil’s chemical business is also gloomy since demand for petrochemicals remains weak.

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

Amgen’s shares have gained +26.1% over the past three months against the Zacks Biomedical and Genetics industry’s rise of +29.6%. The Zacks analyst believes that products like Prolia, Evenity, Repatha, Aimovig, Otezla and biosimilars will drive Amgen’s sales this year.

Amgen boasts of 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 PayPal (PYPL), Humana (HUM) and FedEx (FDX).

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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

Robust Content Aids Netflix (NFLX) Amid Stiff Competition

ExxonMobil (XOM) Banks on Guyana Discoveries, Refining Weak

Amgen (AMGN) Boasts a Strong Branded/Biosimilars Pipeline

Featured Reports

PayPal (PYPL) Benefits From Increasing Total Payment Volume

Per the Zacks analyst, PayPal's total payment volume is rising owing to solid adoption of Venmo and One Touch. Further, growing momentum of core peer to peer and merchant services is positive.

Humana (HUM) Rides on Strong Medicare Business, Costs High

Per the Zacks Analyst, solid Medicare business has helped the company to expand business, which in turn, has led to top-line growth.

Higher Ground Revenues Aid FedEx (FDX), Express Unit Ails

The Zacks analyst is optimistic about the surge in Ground revenues owing to residential delivery volume growth.

Growing Top Line Aids, High Leverage Ails Centene (CNC)

Per the Zacks analyst, its rising revenues on the back of buyouts, solid Health Insurance Marketplace business and expansions poise it well for growth. However, its weak balance sheet bothers.

Investments Aids Sempra Energy (SRE), Operational Risks Hurt

Per the Zacks Analyst, company's disciplined investments in various projects bolster growth prospects. However, it is subject to operational risks associated with breakdown or failure of equipment.

Inorganic Growth Aids, High Costs Hurt HCA Healthcare (HCA)

Per the Zacks analyst, a number of strategic acquisitions have strengthened its portfolio and added to its scale, thereby leading to overall growth.

Fastenal (FAST) Benefits From Industrial Vending Business

Fastenal benefits from industrial vending business and existing Onsite locations along with cost-saving measures, per the Zacks analyst.

New Upgrades

Emergent (EBS) Boasts of a Strong Vaccine Portfolio and Pipeline

Per the Zacks analyst, Emergent's vaccine portfolio looks promising at this juncture. The company's recent acquisitions also bode well and expanded its presence in the public health threats market.

Sonic (SAH) Aided by EchoPark Unit & Digital Ramp-Up

Robust sales from Sonic's used car segment, EchoPark, along with increasing e-commerce initiatives undertaken by the firm has made the Zacks analyst turn bullish on the stock.

Group 1 (GPI) to Gain From Omni-Channel Efforts in U.S.

Per the Zacks Analyst, Group 1's omni-channel efforts in the United States bodes well. Its AcceleRide platform, active at all of the firm's U.S. dealerships are likely to aid its long-term prospects.

New Downgrades

Stiff Competition and High Debt to Mar Western Digital (WDC)

Per the Zacks analyst, stiff competition in storage market from Seagate and a highly leveraged balance sheet, are likely to hurt Western Digital's growth.

Strength in Radixact and CyberKnife Aids Accuray (ARAY)

Accuray has been gaining from solid prospects of its flagship Radixact platform. The Zacks Analyst is however apprehensive about decline in both its Product and Service revenues.

AVEO's Delay in NDA Filling For Tivozanib Does Not Bode Well

Per the Zacks analyst, AVEO's recent string of pipeline setbacks does not bode well. Heavy dependence on partners for the development of its pipeline candidates is a worry.

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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Humana Inc. (HUM) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
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