The Zacks Analyst Blog Highlights: Bristol-Myers Squibb, Sanofi, AbbVie, Celgene and Telus


For Immediate Release

Chicago, IL – May 7, 2013 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Bristol-Myers Squibb Company (BMY), Sanofi (SNY), AbbVie (ABBV), Celgene Corporation (CELG) and Telus Corporation (TU).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Monday’s Analyst Blog:

Good News for Bristol-Myers

Bristol-Myers Squibb Company (BMY) recently received positive news from the US Food and Drug Administration (:FDA) when the US regulatory authority approved the pharma major’s HIV drug Sustiva for treating children between three months and three years. The body weight of the children should not exceed 3.5 kilograms.

The approval provides a once-daily option as part of a regimen for HIV infected children between three months and three years. Moreover, the “capsule sprinkle” administration procedure is beneficial for children who cannot swallow capsules or tablets.

We note that Sustiva is already approved for treating HIV infected patients aged three years and above and weighing not less than 10 kilograms. The FDA decision has expanded the patient population for Sustiva. This will boost the drug’s sales potential.

The FDA decided to expand the patient population for Sustiva on the basis of data from three open-label studies, which evaluated the pharmacokinetics, safety and antiretroviral activity of the drug combined with other antiretroviral agents in 182 antiretroviral-naïve and – experienced patients infected with HIV. The studies evaluated patients aged between three months and 21 years for a median of 123 weeks.

The FDA’s decision to broaden Sustiva’s target population is encouraging for Bristol-Myers, which has entered a challenging phase following the genericization of Plavix. Plavix, co-developed with Sanofi (SNY), went off patent in the US in May 2012. The drug’s genericization has resulted in the loss of significant revenues for Bristol-Myers.

Bristol-Myers is looking to combat the challenges confronting it through partnering deals and acquisitions and introducing new products to augment its product portfolio.

Bristol-Myers, a large cap pharma stock, carries a Zacks Rank # 3 (Hold). AbbVie (ABBV) appears to be more favorably placed in the large cap pharma space with a Zacks Rank # 2 (Buy). Meanwhile, Celgene Corporation (CELG) too carries a Zacks Rank #2.



Telus Likely to Top Earnings


We expect Canada-based Telus Corporation (TU), to beat expectations when it reports its first-quarter 2013 results on May 9, 2013.

Why a Likely Positive Surprise?

Our proven model shows that Telus is likely to beat earnings because it has the right combination of two key ingredients.

Positive Zacks ESP: Expected Surprise Prediction or ESP (Read: Zacks Earnings ESP: A Better Method), which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +3.77%. This is a meaningful and leading indicator of a likely positive earnings surprise.

Zacks Rank #3 (Hold): Telus currently has a Zacks Rank #3. Note that the stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) and 3 (Hold) have a significantly higher chance of beating the earnings.  

The combination of Telus’s Zacks Rank #3 (Hold) and +3.77% ESP makes us confident of a positive earnings beat on May 9, 2013.

What is Driving the Better-Than-Expected Earnings?

Telus’ ongoing investment in the expansion of its fiber optic network provides compelling home entertainment services in the Western Canadian market. The company continues to add new features as well as upgrading the existing features of its popular Optik TV and Optik High Speed Internet broadband services that are gaining strong traction across the Canadian region.

The company is providing 4G LTE networks with the popular smartphones, which resulted in solid growth in its post-paid divisions.

However, Telus remains challenged by the weak Canadian economy and domestic competition, which is expected to intensify with the entry of new wireless players.  Moreover, higher burden of subsidy cost associated with smartphones coupled with lack of spectrum will continue to impede the company’s growth opportunities.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter:

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

Read the analyst report on BMY

Read the analyst report on SNY

Read the analyst report on ABBV

Read the analyst report on CELG

Read the analyst report on TU

Zacks Investment Research

More From
View Comments (0)