Monday, November 6, 2017
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 Facebook (NASDAQ:FB) (FB), Celgene (CELG) and BlackRock (BLK). 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 >>>
Facebook’s shares have outperformed the S&P 500 index over the last year, gaining +46.5% vs. +21.3%. Facebook reported strong third quarter 2017 results as mobile and live video efforts continue to pay off in a big way. Instagram remains another important revenue stream.
Apart from mobile and video, the monetization opportunities of the company’s other subsidiaries – Messenger, WhatsApp and Oculus – and a huge user base/higher engagement levels are expected to drive growth going ahead. Facebook is also dabbling in AR/VR and AI technologies, which bodes well for long term growth.
However, due to the recent uproar caused by apparent usage of the platform by Russian elements for interfering in the election process has put Facebook in a spot. As a result, Facebook CEO Mark Zuckerberg has said that it will make sizable investments to tighten security on the platform which along with continued investments in video, AR/VR and AI, will dent operating margins going ahead.
(You can read the full research report on Facebook here >>>).
Shares of Celgene have underperformed the Zacks Biomedical and Genetics industry in the year so far, losing -13.6% vs. an increase of +3.9%. Celgene’s third-quarter results were mixed with the company beating on earnings but missed on sales estimates.
While Revlimid sales were impressive yet again, Otezla sales in the United States were weak due to challenges in the dermatology market which led the management to cut guidance. Celgene’s Revlimid continued to outperform driven by further market share increases in newly diagnosed myeloma and the continued increase in treatment duration. Pomalyst and Abraxane also performed well.
The Zacks analyst likes the company’s progress with its label expansion efforts and pipeline development. The approval of Idhifa in the United States for relapsed and/or refractory acute myeloid leukemia has further boosted the company’s portfolio.
However, Celgene is highly dependent on Revlimid while Abraxane sales are under competitive pressure. Weakness in Otezla’s performance will also remain a headwind.
(You can read the full research report on Celgene here >>>).
Buy-rated BlackRock’s shares have outperformed the Zacks Investment Management industry in the last six months, (+25.3% vs. +16.9%). This performance is supported by impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters.
The company’s third quarter 2017 earnings were supported by a rise in revenues and steady asset inflows while higher expenses were the undermining factor. The Zacks analyst likes Blackrock’s initiatives to restructure its actively managed equities business with an aim to meet changing client needs.
These efforts, along with technological changes and its attempt to expand globally via acquisitions will further help top-line growth going forward. However, mounting expenses mainly due to continued rise in marketing costs and high dependence on overseas revenues remain major concerns.
(You can read the full research report on BlackRock here >>>).
Other noteworthy reports we are featuring today Danaher (DHR), EOG Resources (NYSE:EOG) (EOG) and BP (LON:BP) (BP).
Wall Street’s Next Amazon (NASDAQ:AMZN)
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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
Featured Reports
Intercontinental (ICE) Grows on Solid Data Services Revenue
Per the Zacks analyst, Intercontinental Exchange's is poised for growth banking on improving Data Services revenue, which management estimates will increase at least 6% in constant currency in 2017.
BP Plc (BP) Banks on Upstream Projects
The strong lineup of upstream projects will help BP fetch significant cash flow starting 2020.
Eaton (ETN) Gains From Restructuring and End Market Growth
The Zacks analyst believes Eaton is gaining from end market growth that will help organic sales increase 2-3%, while its restructuring initiatives will result in a net gain of $55 million in 2017.
EOG Resources (EOG) to Gain From Oil-Rich Eagle Ford Acreage
Huge inventory of premium drilling wells in the Bakken and Eagle Ford shale plays will drive EOG Resources' oil production, per the Zacks analyst.
Cummins (NYSE:CMI) Gains from High Truck Demand, 2017 Guidance Up
Per the Zacks analyst, increased demand for on-highway trucks and construction equipment from global mining customers has encouraged Cummins to anticipate a higher revenue growth in 2017.
Valspar Buyout to Aid Sherwin-Williams (SHW)
The Zacks analyst thinks while Sherwin-Williams will gain from synergies of the Valspar acquisition, hefty costs related to the buyout and higher raw materials costs will weigh on its FY17 earnings.
Rising Healthcare Spending, Buyouts to Drive Danaher (DHR)
Per the Zacks analyst, Danaher is enjoying sustained margin expansion and sales growth amid rising spending on healthcare and fitness.
New Upgrades
Equinix's (NASDAQ:EQIX) IBX Expansion Strategy to Boost Revenues
The Zacks analyst thinks that Equinix's aggressive IBX expansion strategy will fortify its global footprint in the data center space and bring in additional revenues over the long run.
Solid Investment Plan Continues to Boost PG&E Corp (PCG)
Per the Zacks analyst, PG&E Corp's solid capital expenditure plan in gas-related projects and electric system safety enables the company to provide reliable services to its customers.
Sinopec (SNP) Banks on Oil-Rich Shengli Field, Junggar Basin
Per the Zacks analyst, Sinopec's discovery of attractive and economically-viable oil reserves in the Shengli field and Junggar Basin will drive production.
New Downgrades
Lower U.S. Life Insurance Sales Hurt Genworth (GNW)
Per the Zacks analyst, declining sales at U.S. Life Insurance segment, owing to product innovation and pricing changes, will continue to weigh on Genworth's overall performance.
Competition, Weak Printer Demand Restrict 3D Systems (DDD)
Per the Zacks analyst, 3D Systems is struggling with execution amid contracting printer demand and intensifying competition. Sustained margin contraction and high operating expenses remain a concern.
Weak North American Mailing Sales Hurting Pitney Bowes (NYSE:PBI)
Per the Zacks analyst, lacklustre performance of Pitney Bowes' Small & Medium business solutions due to lower sales in the North American Mailing business is weighing on the company's bottom line.
Facebook, Inc. (FB): Free Stock Analysis Report
EOG Resources, Inc. (EOG): Free Stock Analysis Report
Danaher Corporation (NYSE:DHR): Free Stock Analysis Report
Celgene Corporation (NASDAQ:CELG): Free Stock Analysis Report
BP p.l.c. (BP): Free Stock Analysis Report
BlackRock, Inc. (BLK): Free Stock Analysis Report
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