Tuesday, February 21 2017
Today's Research Daily features new research reports on 16 major stocks, including Amgen (AMGN), Procter & Gamble (PG) and Bank of America (BAC). These reports have been hand-picked from the roughly 70 research reports issued by our analyst team today. You can see all of today's research reports here >>>>.
Amgen shares surpassed the Biomed-Genetics industry over the past one year, gaining +16.7% vs. a decline of -3.3%. Helping this momentum was the company's better-than-expected Q4 results, with the company beating on all fronts. The analyst likes its portfolio of blockbuster drugs, the prospect for efficiency gains from the restructuring plan and track record of returning excess cash to shareholders through dividends and buybacks. Amgen is also progressing with its pipeline given quite a few regulatory and data updates scheduled for the coming quarters. However, the company has some challenges in store given the presence of biosimilar competition and slowdown in sales of mature products. Volume growth of recently launched products may not be enough to offset the decline in mature brands. (You can read the full research report onAmgenhere >> )
Procter & Gamble shares outperformed the Zacks Consumer Staples sector in the past year (+10.9% vs. +6.7%) on the back of improved organic sales and improving margins as a result of productivity gains and cost-saving efforts. Also, P&G shares have outperformed the S&P 500 index in the year-to-date period (up +8.3% vs +4.9%). P&G's quarterly results exceeded expectations. On the flip side, the Zacks analyst points to mature end markets and the negative impact of the strong U.S. dollar as some of the headwinds for the stock. Also, flat pricing/mix is reflective of increased competition and lack of transformational innovation. The company also lost global market share in three of its five reporting segments. (You can read the full research report on Procter & Gamble here >> )
Buy rated Bank of America's fourth-quarter 2016 earnings outpaced the Zacks Consensus Estimate, driven by impressive growth in trading revenue and mortgage banking fees. The company's shares have been one of the biggest beneficiaries of the changed macro backdrop following the election, which includes expectations of faster economic growth and overhaul of the country's tax and regulatory systems. No doubt, Bank of America shares have been strong performers since the election - up +44.2% since November 8th vs. +28.1% gain for the Zacks Major Banks industry in that time period, but the analyst still sees plenty of upside in this Buy-rated stock.(You can read the full research report on Bank of America here >> )
Other noteworthy reports we are featuring today include Netflix (NFLX), Monster Beverage (MNST) and Honda (HMC).
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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
The Zacks analyst thinks profits gained in all its primary segments drove American Electric's better-than-expected Q4 results.
The covering analyst appreciates the company's stance on passenger unit revenues. Its efforts to reward shareholders are also encouraging.
Honda reported higher earnings in Q3 that beat estimates and provided improved outlook for the year. The Zacks analyst thinks the company's expansion plans should further boost performance.
According to the covering analyst, NetApp is benefitting from strong adoption of its flash-based solutions as evident from the fourth-quarter earnings and revenue beat.
The Zacks analyst thinks LabCorp continues to trade above the broader industry on better-than-expected 4Q. While organic growth was strong on new test release, currency headwinds are a dampener.
The covering analyst views AON's earnings performance favorably. It is poised for growth on back of its acquisitions, cost control, strong balance sheet but high debt, forex volatility are worries.
International Flavors' fourth quarter earnings and sales beat the respective Zacks Consensus Estimate by 5.2% and 0.3%.
The Zacks Analyst believes that solid production from Noble Energy's organic and inorganic assets, cost reduction and higher demand from both international and domestic assets are driving results.
The covering analyst thinks Netflix will continue to reap benefits of its global expansion strategy and focus on original content. However, stiff competition and rising costs remain a concern.
The Zacks analyst is encouraged by the company's upbeat outlook and thinks its focus on growth through acquisitions & expansion of operations and cost control actions will drive results in 2017.
The Zacks analyst thinks despite witnessing improvement in assets under management, Invesco's profitability is likely to be hampered because of high debt levels and various regulatory restrictions.
The covering analyst thinks Q4 results reflect weakness in revenue growth amid tough operating backdrop. Also, the company expects 2017 GAAP revenues to be flat to low-single digit decline.
The covering analyst believes that Monster Beverage's profits are getting significantly affected by transition costs related to the Coca-Cola deal and unfavorable currency translations.