Tuesday, July 11, 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 Eli Lilly (LLY), NVIDIA (NVDA) and American Express (AXP). 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 >>>
Pharmaceutical stocks have been under pressure since last year on pricing and regulatory concerns and Eli Lilly shares have been no different. That said, the stock has done modestly better than the peer group; it is up +3.3% over the last 12 months vs. -1.4% loss for the Zacks Pharma industry and +0.6% gain for the Zacks Medical sector as a whole.
Lilly’s recent high-profile pipeline setbacks are a concern for investors. But the Zacks analyst is encouraged by the fact that Lilly expects to launch 20 new products in a 10 year time-frame ranging from 2014 to 2023 and could launch at least 2 new indications/line extensions on average every year.
Moreover, Lilly returned to annual dividend hikes in Dec 2016 and plans to return excess cash through share buybacks. Estimates have remained stable ahead of the company’s Q2 release. The company has a negative record of earnings surprises in recent quarters. (You can read the full research report on Eli Lily here >>>).
Shares of Strong Buy-rated NVIDIA have surged this year, gaining in excess of +191% versus the general semiconductors industry’s +29% gain. The Zacks analyst likes NVIDIA’s innovative product pipeline and strength in gaming and high-end notebook GPUs.
NVIDIA’s sustained efforts toward attaining robust position in several emerging industries such as Artificial Intelligence (AI), deep learning and driverless cars are other positives. The company’s focus on GRID platforms can increase GPU adoption in data centers, giving it an advantage against its competitors. (You can read the full research report on NVIDIA here >>>).
American Express shares have gained +33.8% over the last year, higher than the broader finance sector’s gain of +21.1%. The Zacks analyst likes its solid market position, strength in card business and significant opportunities from the secular shift toward electronic payments. Its strategic initiative focusing on platinum card portfolio and OptBlue program will drive business volume.
It is also benefiting from cost reduction efforts, and return of significant amounts of capital to shareholders through dividend and share buyback programs. However, increase in provision for losses, a strong U.S. dollar, loss of Costco (NASDAQ:COST) as a client and intense competition remain major near-term concerns.
The company is scheduled to report second-quarter results on July 19. The stock has witnessed a downward revision in earnings estimate over the past 30 days. (You can read the full research report on American Express here >>>).
Other noteworthy reports we are featuring today include NIKE (NKE), Crown Castle (CCI) and State Street (STT).
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple (NASDAQ:AAPL)'s 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade, which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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
WestRock (WRK) Gains on Acquisitions Amid Cost Inflation
The Zacks analyst appreciates WestRock's bid to tap growing corrugated packaging demand through acquisitions of corrugated assets.
Verisk's (VRSK) Holistic Growth Marred by Security Breaches
Per the Zacks analyst, Verisk has a large and diverse addressable market with low customer concentration that mitigates risks.
State Street (STT) to Thrive on GE Asset Management Deal
Per the covering analyst, State Street remains on track for revenue growth supported by the acquisition of GE Asset Management.
Dominion (D) Gains From its Renewables & Pipeline Expansion
Per the Zacks analyst Dominion's focus on generating more energy from renewable sources and its pipeline expansion projects are expected to drive its performance.
Edwards' (EW) THV Arm Strengthens on Adoption of SAPIEN Line
The Zacks analyst believes Edwards' recent regulatory approvals for its SAPIEN line are well timed, giving the company a competitive edge in the global Transcatheter Heart Valve market.
D.R. Horton (DHI) to Gain from Forestar Group Buyout
The covering analyst stresses that D.R. Horton's agreement to buy 75% shares of Forestar will expand its operations in Texas.
Symantec (NASDAQ:SYMC) to Benefit from Rising Global Cyber Attacks
The prospects of Symantec look bright as recent global hackings have started to adversely affect the top- and bottom-line results of various organizations.
New Upgrades
Exelixis' (EXEL) Cabometyx Solid, Label Expansion in Focus
Exelixis got a significant boost with Cabometyx's approval in 2016. Per the Zacks analyst, the company's efforts to expand the drug's label are impressive and a potential approval will bode well.
Diversification into Fiber Network Lifts Crown Castle (CCI)
Per the covering analyst, the recent acquisition of over 28,000 route miles of fiber will help Crown Castle's efforts to diversify into the fiber business.
Change in Product & Business Mix Aids Lincoln National (NYSE:LNC)
Per the Zacks analyst, changes made to business mix to incline more toward Life products without long-term guarantees & shedding off noncore, lower profitable businesses poise the company for growth.
New Downgrades
CME Group's (NASDAQ:CME) High Expenses Weigh on Margin Expansion
Per the Zacks analyst, CME Group's investments in strategic initiatives are expected to drive expenses higher. Management predicts adjusted total operating expenses in 2017 to be up 1% from 2016.
Soft Core Segment Sales Weigh on Nike (NYSE:NKE)
Per the Zacks analyst, Nike delivered top line beat in fourth-quarter fiscal 2017, but North America sales are suffering due to lackluster assortments,increased promotions and intensified competition.
Kinder Morgan's (NYSE:KMI) Prospects Dull on Trans Mountain Woes
North America's largest credit unions association Desjardins Group could stop funding the Trans Mountain project on environmental concerns. The Zacks analyst expects this to hurt Kinder Morgan.
State Street Corporation (NYSE:STT
NVIDIA Corporation (NASDAQ:NVDA
Nike, Inc. (NKE): Free Stock Analysis Report
Eli Lilly and Company (NYSE:LLY
Crown Castle International Corporation (NYSE:CCI
American Express Company (NYSE:AXP
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