Top Analyst Reports for Procter & Gamble, Novo Nordisk & PepsiCo

Wednesday, April 9, 2025

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 The Procter & Gamble Co. (PG), Novo Nordisk A/S (NVO) and PepsiCo, Inc. (PEP), as well as two micro-cap stocks Genie Energy Ltd. (GNE) and Canterbury Park Holding Corp. (CPHC). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 >>> China Cranks Up Tariff "Pain" to +84%

Today's Featured Research Reports

Procter & Gamble's shares have gained +3.2% over the past year against the Zacks Consumer Products - Staples industry’s gain of +4.3%. The company is gaining from a strategy that focuses on sustainability and adaptability, responding to the evolving demands of consumers.

Procter & Gamble has been focused on productivity and cost-saving plans to boost margins. This led to the bottom line beating the consensus mark for the tenth consecutive quarter in second-quarter fiscal 2025. PG reiterated its view for fiscal 2025. PG estimates organic sales to grow 3-5% for the fiscal year versus our estimate of a 3% growth.

PG has been witnessing headwinds related to market issues in Greater China, geopolitical tensions, and financial impacts from currency volatility. PG’s fiscal 2025 EPS view includes an after-tax headwind of $200 million related to unfavorable commodity costs, and adverse currency.

(You can read the full research report on Procter & Gamble here >>>)

Shares of Novo Nordisk have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-50% vs. -14%). The company has faced failure to meet the weight-loss target with its CagriSema injection treatment twice, which caused Novo Nordisk a huge setback. Intense rivalry in the obesity sector also threatens its market share. Patent expiry and pricing pressure across the diabetes market remain a concern.

Nevertheless, Novo Nordisk’s diabetes drugs Ozempic and Rybelsus and obesity drug Wegovy are performing well, fueled by increasing demand. Label expansions of the same in cardiovascular and other indications will likely boost sales.

Novo Nordisk has been tackling the supply constraints of Wegovy by making serious investments to ramp up production. It is now indicated in the United States and the EU to also reduce heart risks, which is a huge boost. Novo Nordisk is also pursuing other indications like liver fibrosis and MASH for semaglutide.

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

PepsiCo’s shares have underperformed the Zacks Beverages - Soft drinks industry over the past year (-14.2% vs. +1.9%). The company is facing weaker consumer demand in North America, QFNA product recalls, and geopolitical tensions. Adverse currency rates continue to pose challenges.

Nevertheless, PepsiCo is well-positioned to benefit from its strong core categories, diversified portfolio, modernized supply chain, enhanced digital capabilities, and flexible distribution systems. Its international business remains a key driver, delivering strong volume and organic revenue growth in the fourth quarter.

Productivity and cost-management initiatives further support its positive outlook. In 2025, PepsiCo aims to expand its international business while improving North America performance. Its multi-year productivity initiatives are poised to help fund disciplined commercial investments and aid profitability.

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

Shares of Genie Energy have underperformed the Zacks Utility - Electric Power industry over the past year (-0.8% vs. +16.3%). This microcap company with a market capitalization of $394.16 million faces risks which include margin compression in its Genie Retail Energy (GRE) segment, reliance on insurance reserves, execution risks in solar, flat revenues despite meter growth, weather-driven demand variability, and a 30% drop in non-GAAP EPS, which clouds earnings visibility.

Nevertheless, Genie Energy offers a compelling mix of financial strength, strategic growth and emerging renewable exposure. It ended 2024 with $201 million in cash/securities and $117.6 million in working capital, supporting $70.7 million in operating cash flow and capital returns.

GRE added 60,000+ meters, boosting recurring revenues while churn improved. GRE's pivot to utility-scale solar shows promise, aided by its first financing deal and $7 million cash return. Diversegy reversed losses with 70% revenue growth. Expansion into Texas and California adds scale, and Roded, which is its recycling venture, opens a green growth path.

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

Canterbury Park’s shares have underperformed the Zacks Gaming industry over the past year (-18.7% vs. -0.7%). This microcap company with market capitalization of $89.85 million is facing risks which include competitive casino pressure, equity JV losses, lower land sale gains, EBITDA margin compression, pari-mutuel softness and sharp earnings volatility, as profitability remains tied to episodic real estate gains and rising operational costs challenge core margins.

Nevertheless, Canterbury Park’s growth is focused on Canterbury Commons, advancing as a mixed-use hub with strong residential leasing, entertainment venues and 50 acres for future expansion, driving diversified revenues. Disciplined expense control and declining capex support cash flow stability, while record non-gaming events and land monetization enhance income diversity.

Liquidity remains robust, with $15 million in cash and TIF receivables bolstering development funding and dividend continuity. CPHC is strategically positioned to benefit from the potential legalization of online sports betting, creating additional revenue opportunities.

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

Other noteworthy reports we are featuring today include Union Pacific Corp. (UNP), CME Group Inc. (CME) and Eni S.p.A. (E).

Mark Vickery
Senior 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

P&G's (PG) Productivity & Cost Savings Plan to Aid Margins

GLP-1 Drugs Boost Novo Nordisk (NVO), Market Rivalry a Woe

PepsiCo's (PEP) Business Investments to Bolster Performance

Featured Reports

Union Pacific (UNP) Rides on Dividends Amid Declining Volume
The Zacks analyst likes the shareholder-friendly measures adopted by Union Pacific. The decline in volumes due to soft consumer markets and reduced fuel surcharge revenue is a concern.

Eni's (E) Hydrocarbon Finds and Renewables Drive Growth
Eni's upstream growth, fueled by new hydrocarbon discoveries and renewable capacity expansion, supports long-term growth. However, weak refining margins concern the Zacks analyst.

Improving Volumes to Aid Crown Holdings (CCK) As Costs Ail
Per the Zacks Analyst, improved volumes in the Americas Beverage and European Beverage segments will help offset the impact of higher costs and tariffs on Crown Holdings' margins.

Spec Strategy Aids Meritage Homes (MTH), Macro Woes Ail
Per the Zacks analyst, Meritage Homes benefits from its solid spec strategy. However, ongoing affordability concerns in the housing market and high mortgage rates remain a concern.

Acquisitions Aid Ormat Technologies (ORA) Amid Poor Solvency
Per the Zacks analyst, Ormat Technologies is likely to benefit from profitable strategic acquisitions and power purchase agreements. Yet its poor financial ratios indicate weak solvency position.

RingCentral (RNG) Rides on Strong Portfolio, Partner Base
Per the Zacks analyst, RingCentral benefits from solid demand for its Unified Communications as a Service and contact center software-as-a-service solutions.

Focus on Natural Products to Drive United Natural (UNFI)
Per the Zacks analyst, United Natural is benefiting from growing sales in the Natural segment. In the second quarter of fiscal 2025, sales in the Natural segment grew 8.2%.

New Upgrades

Improving Clearing and Transaction Fees Aid CME Group (CME)
Per the Zacks analyst, CME Group is set to grow on higher clearing and transaction fees as market position, diverse derivative product lines and expansion of futures products drive volumes.

Telefonica (TEF) Gains on Service Growth, AI & 5G Expansion
Per the Zacks analyst, robust B2B and B2C demand, AI-led innovation and 5G rollout fuel Telefonica's growth, with Tech unit gains in cybersecurity and IoT boosting long-term prospects.

AngioDynamics (ANGO) Gains on NanoKnife Tech, Cancer Focus
Per the Zacks analyst, AngioDynamics is gaining from NanoKnife prospects and a deeper focus on pancreatic cancer. A strong product portfolio further supports growth and boosts investor confidence.

New Downgrades

Agios' (AGIO) Sole Dependence on Pyrukynd A Concern
Per the Zacks Analyst, Agios is highly dependent on its sole marketed drug, Pyrukynd, to drive sales. Other than Pyrukynd, the company's pipeline drugs are still in early-stage development.

Macroeconomic Woes Dent Bandwidth's (BAND) Operations
Per the Zacks Analyst, increasing operating costs due to new product launches are hurting Bandwidth's margins. Macroeconomic woes and increased competition from peers are also worrisome.

Volatile Investment Management Fees Hurt Franklin (BEN)
Per the Zacks analyst, Volatility in investment management fees on market fluctuations adversely impacts Franklin's financials. Also, the rising expense base is concerning.

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This article originally published on Zacks Investment Research (zacks.com).

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