Tuesday, April 23, 2019
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 Roche (RHHBY), Danaher (DHR) and BlackRock (NYSE: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 >>>
Buy-ranked Roche’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry in the past six months, gaining +10.5% vs. a decline of -1.0%. The Zacks analyst thinks Roche posted strong sales for the first quarter of 2019, propelled by demand for new drugs amid biosimilar competition for legacy drugs. Consequently, the company raised its guidance for the year.
Strong performance of Ocrevus, Perjeta, Tecentriq and Hemlibra offset lower sales of MabThera/Rituxan. In particular, MS drug Ocrevus witnessed strong growth, driven by increased demand. Also, label expansion of Tecentriq into various indications contributed to first-quarter sales.
Meanwhile, the company is looking to restructure its portfolio beyond oncology into MS and haemophilia, among others. Roche dominates the breast cancer space with strong demand for its HER2 franchise drugs.
(You can read the full research report on Roche here >>>).
Shares of Danaher have gained +19.7% over the past three months, outperforming the Zacks Diversified Operations industry, which has increased +16.5% over the same period. In first-quarter of 2019, the company’s earnings and sales beat estimates.
The Zacks analyst thinks sturdier demand for innovative products, effective Danaher Business System (“DBS”) implementation and shareholder-friendly policies will likely bolster profitability going forward. Also, it anticipates that the acquisition of General Electric (NYSE:GE) Company’s BioPharma business will complement its biologics workflow solutions of the Life Sciences segment. The divestiture of its dental business will boost its competency.
However, rising cost of sales and unfavorable movements in foreign currencies might continue to restrict Danaher’s growth. For 2019, the company lowered adjusted earnings per share guidance, primarily reflecting dilutive impact of funds raised for the BioPharma buyout.
(You can read the full research report on Danaher here >>>).
BlackRock’s shares have gained +22.5% in the past six months, outperforming the Zacks Investment Management industry’s increase of +15.5% during the same period. The company’s earnings surpassed expectations in three of the trailing four quarters.
The Zacks analyst thinks its first-quarter 2019 results benefited from lower expenses and higher assets under management (AUM), partly offset by lower revenues. The company’s initiatives to restructure its actively managed equity business, and expand globally via acquisitions to further boost top line and AUM remain impressive.
While a steady increase in operating expenses and high dependence on overseas revenues remain matters of concern, the company’s capital deployment actions reflect strong balance sheet position.
(You can read the full research report on BlackRock here >>>).
Other noteworthy reports we are featuring today include Cigna (CI), Kinder Morgan (NYSE:KMI) and Allstate (ALL).
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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
Premium Growth Buoys Allstate (ALL), Catastrophe Loss Hurts
Per the Zacks analyst,initiatives such as pricing discipline, marketing, distribution, new products and technology have led to premium growth. But high weather related losses are hurting margins.
HP (HPQ) Banks on Innovative Pipeline, Marketing Strategy
Per the Zacks analyst, HP's sustained focus on product innovations, pricing, marketing and sales activities are helping it revive personal systems and printing business.
Wireless Subscriber Growth Aids Rogers Communication (RCI)
Per the Zacks analyst, solid postpaid subscriber gain in wireless segment and increasing Internet user count is benefiting Rogers Communication.
Check Point (CHKP) Rides On Strong Portfolio & Customer Wins
Per the Zacks analyst, strong demand for Cloud, Mobile and SandBlast Zero-day ATP technologies, coupled with increased adoption of the Infinity architecture are driving Check Point's top line.
Torchmark (NYSE:TMK) Set to Grow on Solid Distribution Channels
Per the Zacks analyst, strong performance across distribution channels is driving life and health sales.
Solid Backlog, Rising Growth Prospects Aid Teledyne (TDY)
Per the Zacks analyst, increased contract wins from the Pentagon and other U.S. allies bolsters Teledyne's backlog.
Loan Growth Aids Mitsubishi (MUFG) Amid Low Interest Rates
Per the Zacks analyst, organic growth remains a key strength at Mitsubishi UFJ.
New Upgrades
Express Scripts (NASDAQ:ESRX) Buy, Revenue Growth Aid Cigna (CI)
Per the Zacks analyst, the buyout of Express Scripts has diversified Cigna's operations opening up new revenue streams. Increasing membership, superior products and services have led to revenue growth
Operating Ratio Improvement Buoys Kansas City Southern (NYSE:KSU)
The Zacks analyst appreciates the improvement in operating ratio. Efforts to reward shareholders through dividends and buybacks are encouraging too.
Choice Hotels (CHH) Banks On WoodSpring Buyout & Expansion
Per the Zacks analyst, Choice Hotels' continual expansion strategies through acquisitions and franchise agreements are encouraging. Acquisition of the WoodSpring brand has also been a major positive.
New Downgrades
Low Project Backlog, High Debt Load Hurt Kinder Morgan (KMI)
Low project backlog following the sale of Trans Mountain pipeline will dent Kinder Morgan's cashflow. However, the firm's debt levels are a concern, per the Zacks analyst.
Escalating Expenses, Cat Loss Exposure Hurt Alleghany (Y)
Per the Zacks analyst, Alleghany's rising expenses induces margin contraction while exposure to catastrophe losses cause volatility in underwriting results are headwinds.
Increasing Operating Expenses to Hurt Covanta Holding (CVA)
Per the Zacks analyst, persistently higher operating expenses which outweigh revenues are expected to hurt Covanta Holding's performance.
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Roche Holding (SIX:ROG) AG (RHHBY): Free Stock Analysis Report
Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
Danaher Corporation (NYSE:DHR): Free Stock Analysis Report
Cigna Corporation (NYSE:CI): Free Stock Analysis Report
BlackRock, Inc. (BLK): Free Stock Analysis Report
The Allstate Corporation (NYSE:ALL): Free Stock Analysis Report
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Zacks Investment Research