Top Stock Reports for Alphabet, AbbVie & Walt Disney

Globe and Mail

17 hours ago

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 Alphabet Inc. (GOOGL), AbbVie Inc. (ABBV) and The Walt Disney Co. (DIS). 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 >>>
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You can read today's AWS here >>> Plenty of Data to Start 2nd Half of 2025
Today's Featured Research Reports
Shares of Alphabet have underperformed the Zacks Internet - Services industry over the year-to-date period (-7.7% vs. -4.4%). The company's increasing litigation issues are a concern. Intensifying competition from Microsoft and Amazon in cloud computing is a headwind.
Nevertheless, Alphabet is riding on strong cloud and search growth. Google Cloud is benefiting from accelerated growth across AI infrastructure, enterprise AI platform Vertex and strong adoption of Generative AI solutions. The company expects capital expenditures in 2025 to be relatively higher than in 2024, aimed at building technical infrastructure, primarily for servers, followed by data centers and networking.
Alphabet's dominant position in the search engine market is a strong growth driver. In first-quarter 2025, GOOGL saw continued double-digit revenue growth in Search. Alphabet surpassed 270 million paid subscriptions with YouTube and Google One as key drivers.
(You can read the full research report on Alphabet here >>>)
AbbVie's shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+6.2% vs. -0.6%). The company has successfully navigated Humira's loss of exclusivity (LOE) by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well -- bolstered by approvals in new indications and should support top-line growth in the next few years.
AbbVie has several early/mid-stage candidates that have the potential to drive long-term growth. It expects to return to robust revenue growth in 2025, which is just the second year following the U.S. Humira LOE. AbbVie has been on an acquisition spree, mainly in its core space of immunology.
However, the company faces several near-term headwinds like Humira LOE impact, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise.
(You can read the full research report on AbbVie here >>>)
Shares of Walt Disney have gained +11.5% over the year-to-date period against the Zacks Media Conglomerates industry's gain of +14.7%. The company is benefiting from strength in Domestic Parks & Experiences revenues driven by growth at domestic parks, Disney Vacation Club and Disney Cruise Line, partially offset by decline at international locations including
Shanghai Disney Resort and Hong Kong Disneyland Resort. In Entertainment, DIS expects double-digit segment operating income growth in fiscal 2025. The Zacks analyst expects fiscal 2025 net sales to increase 3.7% from fiscal 2024.
However, Disney+'s profitability is expected to be hurt by higher investments in content, which will also increase programming and production costs in the Entertainment segment. For fiscal Q3, Disney expects a modest increase in its Disney+ subscriber base on a sequential basis. Disney's declining ad revenues is an overhang. The company's leveraged balance sheet remains a concern.
(You can read the full research report on Walt Disney here >>>)
Other noteworthy reports we are featuring today include Humana Inc. (HUM), Essex Property Trust, Inc. (ESS) and BJ's Wholesale Club Holdings, Inc. (BJ).
Mark Vickery
Senor 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>>>
Today's Must Read
Alphabet (GOOGL) Benefits From Cloud & Search Initiatives
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth
Disney (DIS) Banks on Disney+, Theme Parks Business Growth
Featured Reports
Renter Unit Demand Aids Essex Property (ESS) Amid High Debt
Per the Zacks Analyst, ESS is likely to gain from a sturdy property base in the West Coast market with favorable demand drivers and technology initiatives. Yet, a high debt burden is a concern.
Digitization Holds Key to BJ's Wholesale (BJ) Sales Growth
Per the Zacks analyst, BJ's Wholesale Club has been investing in enhancing digital capabilities to better engage with members. Digitally-enabled sales rose 35% in the first quarter of fiscal 2025.
Robust Public Spending Aids AECOM (ACM), Macro Risks Hurt
Per the Zacks analyst, AECOM is gaining from robust public infrastructure spending and its focus on high-margin markets. However, ongoing macro risks and lingering inflation restrict growth.
HealthEquity (HQY) Gains on HSA Growth Amid Macro Challenges
Per the Zacks Analyst, HealthEquity's HSA-driven momentum and strong solvency position support its growth, though regulatory hurdles, competition, and data security concerns remain key risks.
InterDigital (IDCC) Rides on Healthy Demand, Portfolio Strength
Per the Zacks analyst, strong licensing momentum in the smartphone business will likely drive InterDigital's top line. A strong focus on innovation is a positive.
Rising Loans & Deposits Aid Flagstar (FLG), High Costs Ail
Per the Zacks analyst, Flagstar's strong balance sheet position, driven by rising loans and deposits balances, will likely support its financials. Yet, escalating costs remain a concern.
Northern Oil and Gas (NOG) Benefits from Non-Operated Model
The Zacks analyst notes that Northern Oil and Gas' non-operated business model allows it to optimize investments ensuring efficient capital deployment, but oil price volatility remains a key risk.
New Upgrades
Humana (HUM) Rides on Solid Medicare Business, Balance Sheet
Per the Zacks analyst, Humana's Medicare Advantage business remains a driving factor for its top line. Also, its strong balance sheet enables business investments that drive long-term growth.
Verona Pharma's Ohtuvayre Launch Powers Breakout Growth
Per the Zacks analyst, VRNA's differentiated COPD drug, Ohtuvayre, is expected to drive significant growth for the company in the upcoming quarters.
Clean Assets, North America Focus Aid Clearway Energy (CWEN)
Per the Zacks analyst Clearway Energy is expected to gain from its expanding modern clean renewable projects and focus on North America, saves it from currency fluctuation and sovereign risks.
New Downgrades
Schneider (SNDR) is Hurt by Lower Brokerage Revenues & Volumes
The Zacks Analyst is worried about the fact that lower Network volumes and lower brokerage revenue per order hurt Schneider's top line.
Raw Material Shortage & Logistics Concerns Ail Ashland (ASH)
Per the Zacks Analyst, supply-demand issues in the intermediates market, rising freight costs, and raw material shortages will continue to weigh on the company's results.t
Avnet (AVT) Hurt by Declining Demand, High Inventory Levels
Per the Zacks analyst, softened demand in a tight IT spending environment, along with high inventory levels at customers, is likely to hurt Avnet's financial performance in the near term.
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The Walt Disney Company (DIS): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report