For Immediate Release
Chicago, IL - October 29, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Allergan Plc. AGN , Regeneron Pharmaceuticals Inc. REGN , Amgen Inc. AMGN , Alnylam Pharmaceuticals Inc. ALNY and AMAG Pharmaceuticals, Inc. AMAG .
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Here are highlights from Friday's Analyst Blog:
5 Drug/Biotech Stocks Likely to Beat Estimates in Q3 Earnings
The drug/biotech industry has seen a mixed performance in the past six months. The Large Cap Pharmaceuticals sector (comprising some of the biggest drugmakers in the world) has gained 6.5% compared with the S&P 500's increase of 1.6%.
However, the riskier Medical-Biomedical and Genetics sector, which includes large as well as small biotech companies, has underperformed the S&P 500. The biotech industry has declined 10.3% against the S&P 500 increase of 1.6%, probably because of some pipeline setbacks faced by the industry.
Rising demand for new products, rampant innovation and product line extensions, strong clinical study results and frequent FDA approvals keep this sector on the growth track. Merger and acquisition (M&A) activity is gaining momentum with the new tax reform in place which is obviously a boon for any sector.
Meanwhile, government scrutiny of high drug prices, pricing and competitive pressure, slowdown in sales of some of the most high-profile older drugs and major pipeline setbacks act as deterrents.
Nonetheless, the drug/biotech industry is expected to recover from here. We believe that pipeline success, cost cutting, share buybacks, product launches, increased M&A and collaboration activity as well as appropriate utilization of cash should act in favor of the drug/biotech sector.
How to Pick Potential Q3 Winners?
There are a number of drug/biotech companies poised to surpass third-quarter estimates. However, given the large number of drug/biotech firms, the task of selecting stocks with possibilities to beat could appear quite daunting.
With the help of the Zacks Stock Screener , we have zeroed in on five drug/ biotech stocks that carry a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and have a positive Earnings ESP . It is a valuable tool for investors looking for stocks that are most likely to beat earnings estimates. Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
5 Stocks Poised to Outperform
Allergan Plc. has an Earnings ESP of +3.38% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2018 is pegged at $4.01. The company has a trailing four-quarter average positive earnings surprise of 5.72%. The company is scheduled to report results on Oct 30, before market opens. You can see the complete list of today's Zacks #1 Rank stocks here.
Regeneron Pharmaceuticals Inc. has an Earnings ESP of +4.65% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2018 earnings is pegged at $5.21. The company has beaten earnings in the trailing four quarters, the average beat being 8.18%. The company is slated to release earnings on Nov 6, before market opens.
Amgen Inc. has an Earnings ESP of +3.54% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2018 is pegged at $3.42. The company has beaten earnings in three of the trailing four quarters, the average positive earnings surprise being 4.29%. The company is scheduled to release earnings on Oct 30 after market close.
Alnylam Pharmaceuticals Inc. has an Earnings ESP of +12.54% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2018 bottom line is pegged at a loss of $1.80. Alnylam is expected to report earnings on Nov 6.
AMAG Pharmaceuticals, Inc. has an Earnings ESP of +13.76% and a Zacks Rank #3. The consensus mark for the third quarter stands at a loss of 67 cents. AMAG is slated to announce results on Nov 1, before market opens.
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About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAllergan plc (AGN): Free Stock Analysis ReportAMAG Pharmaceuticals, Inc. (AMAG): Free Stock Analysis ReportAlnylam Pharmaceuticals, Inc. (ALNY): Free Stock Analysis ReportAmgen Inc. (AMGN): Free Stock Analysis ReportRegeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research