Top Stock Reports for Oracle, Allergan & Abbott
Friday June 23 2017
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Oracle ( ORCL ), Allergan ( AGN ), and Abbott ( ABT ).These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Buy rated Oracle shares have outperformed the Zacks Technology Sector year-to-date, gaining +33.1% vs. +15.4%. The company's offerings in SaaS and PaaS have gained significant momentum in the past few quarters, which improves the company's competitive position in the red hot cloud space, particularly against salesforce.com and Workday. The Zacks analyst likes the company's growing cloud market share and sees the positive momentum in this area as a notable top-line growth driver. Moreover, Oracle continues to win new customers in HCM, ERP and CX. However, high investments in IaaS will affect gross margin expansion in the near-term. Further, a strong U.S. dollar remains a headwind.
Shares of Allergan have gained +17.1% year to date, outperforming the Zacks Medical-Generic Drugs industry, which has increased +0.3% over the same period. The Zacks analyst likes products like Botox and Linzess as well as new products, which are supporting sales growth. With the closing of the Teva deal, Allergan can now focus on the branded segment and is using the proceeds to buy back shares, pay down debt and pursue additional deals. Biosimilars also represent a significant opportunity. However, Allergan faces generic threats for legacy brands like Namenda IR as well as patent challenges for some of the other products in its branded portfolio. Also new competition for key growth drivers, Restasis and Linzess, is an investor concern.
Abbott 's shares have outperformed the Zacks Medical sector in the year-to-date period (the stock is up +28.1% vs. +14.3% gain for the sector) on the back of greater appreciation for the company's strategic repositioning through acquisitions/divestitures. A case in point is the St. Jude Medical buyout that complements the company cardiovascular devices business. Recently, Abbott received CE mark for its TactiCath Sensor and Confirm Rx ICM products which is quite encouraging. All in all, market participants like management's strategic focus on core therapeutic areas. On the flip side, the analyst identifies weakness in the nutrition business in China and sluggish growth in the Venezuelan market as areas of concern.
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Investment Research Coordinator
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 Trendsand Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Alexion's blockbuster drug, Soliris, continues to perform while Kanuma lagged expectations. Per the Zacks analyst, the successful development of ALXN1210 will boost growth prospects significantly.
While the covering analyst likes Valero's diversified refinery base and high dividend yield, its rise in expenses following heavy maintenance activities limits upside.
Per the Zacks analyst, Fioptics internet and video subscriber gain is a major positive for Cincinnati Bell. However, loss in local access lines, heavy capital expenses and legal woes raises concerns.
The Zacks analyst thinks CME Group's focus on expansion of its derivative product lines will continue to drive growth.
Per the covering analyst, Lululemon is capable of driving impressive sales growth by focusing on eCommerce and investing in innovation.
Per the Zacks analyst, organic growth remained a key strength at M&T Bank, as reflected by rising loans and deposits aiding revenue growth. Further, easing of margin pressure is a favorable factor.
With Adobe delivering strong Q2 results, the covering analyst believes that the company's strong position in creative cloud market and continued innovation will continue to drive growth going forward.
Per the Zacks analyst, John Wiley & Sons' top line is likely to be hurt as it continues to face weak demand for printed books. Evidently, revenues for publishing declined 7% in fiscal 2017.
The covering analyst believes gross margin compression due to rising land and construction costs can keep the housing momentum in check. Lennar's gross margin declined 160 bps year over year in Q2.