Top Analyst Reports for Thermo Fisher, SAP & Bristol-Myers
Wednesday, October 28, 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 Thermo Fisher Scientific (TMO), SAP SE (SAP) and Bristol-Myers Squibb (BMY). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Thermo Fisher shares have outperformed the Zacks Medical Instruments industry in the year-to-date period (+50.6% vs. +20.6%) on the back of strong momentum in the company's Life Sciences Solutions and Specialty Diagnostics segments.
Thermo Fisher ended the third quarter with better-than-expected numbers. The company delivered an outstanding quarterly performance, leveraging on its capacity to extend support amid the pandemic. In terms of end market, pharma and biotech registered growth on robust performance in bioproduction and pharma services.
In diagnostics and healthcare, the company experienced exceptionally high demand for COVID-19 testing. A strong capital structure looks encouraging. However, the coronavirus outbreak has massively disrupted the global supply chain. One of the end markets registered loss in the third quarter, largely due to customer shutdowns in China.
Shares of SAP have lost -13% over the past year against the Zacks Computer Software industry’s rise of +39.3%, with the German software giant losing big following weak cloud computing results in the Q3 report. That said, the Zacks analyst believes that SAP is poised to gain from robust uptake of S/4HANA, Fieldglass, and SuccessFactors Employee Central solutions. Further, SAP's alliances with IBM, Microsoft, Accenture and Verizon favor business prospects.
SAP’s Q3 earnings gained from solid contribution from Sapphire Ventures. However, revenues fell on soft uptake of software licenses and support offerings. Also, lingering coronavirus crisis led business impacts dented 2020 view. Nevertheless, high demand for e-commerce, digital supply chain, Qualtrics and cloud platform solutions, limited the decline.
However, rise in investments to enhance cloud-based offerings are likely to weigh on margins in near term. Also, coronavirus crisis led reductions in business travel are anticipated to impact Concur revenues.
Bristol-Myers shares have lost -4.7% over the past six months against the Zacks Biomedical and Genetics industry’s fall of -5.2%. The Zacks analyst believes that the label expansion of Opdivo for first-line NSCLC should boost prospects. The addition of sales from Celgene’s drugs has boosted growth prospects.
Blockbuster immuno-oncology drug, Opdivo, and blood thinner drug, Eliquis, drive growth for Bristol-Myers. Eliquis is the leading oral anti-coagulant drug and the company continues to witness growth in both Eliquis brand and the market.
Moreover, the addition of Revlimid has strengthened the oncology portfolio and fueled the top line. The company lifted its earnings guidance for 2020 in hope of a possible recovery in the second half. However, Opdivo’s performance was dismal as it faces stiff competition. Moreover, concerns will rise once Revlimid loses patent protection.
Other noteworthy reports we are featuring today include NextEra Energy (NEE), BHP Group (BHP) and Morgan Stanley (MS).
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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
Per the Zacks analyst, NextEra's planned investment in the range of $50 to $55B through 2022 to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.
The Zacks analyst believes BHP's strong cash flow, focus on lowering debt, investment in major projects, recent rally in iron prices, and efforts to make operations more efficient will drive growth.
Per the Zacks analyst, inorganic expansion efforts with an aim to focus on fewer capital-markets dependent operations are likely to aid Morgan Stanley amid low rates and economic slowdown.
Per the Zacks analyst, Altria is set to gain on efforts to expand oral tobacco products unit, wherein revenues rose 9.6% in the second quarter.
Per the Zacks analyst, the key source of Goldman's earnings stability is business diversification. However, legal hassles and volatile client-activity amid coronavirus-induced slowdown are concerns.
Per the Zacks analyst, strategic initiatives have enabled the company to control costs, which is driving margins.
Per the Zacks analyst, Pinterest is benefiting from strength in user base backed by enhanced product offerings and a wider advertiser base.
Gentex's favorable product mix along with new product launches and its structural & purchasing cost reductions are likely to aid the firm's bottom line going forward, per the Zacks analyst.
Per the Zacks analyst, Moelis & Company's geographical expansion efforts, continued solid mergers and acquisitions along with restructuring efforts across the world will likely aid revenue growth.
Per the Zacks analyst, an accretive subscriber base and robust demand for connected home products driven by growing work-from-home trends are likely to boost NETGEAR's near-term revenues.
The Zacks analyst believes that increasing competition in the e-commerce space from Amazon and small players remains a major concern. Also, higher expenses could impact the company's profitability.
The Zacks analyst is concerned about the intense competition to Fresenius Medical in the niche market of dialysis products. A tough regulatory environment is another concern.
Per the Zacks analyst, BJ's Restaurants have been negatively impacted by dismal traffic due to social distancing protocols. Moreover, high operating costs also act as a headwind.
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Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report
SAP SE (SAP): Free Stock Analysis Report
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
Morgan Stanley (MS): Free Stock Analysis Report
Bristol Myers Squibb Company (BMY): Free Stock Analysis Report
BHP Group Limited (BHP): Free Stock Analysis Report
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