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Top Analyst Reports for Apple, Procter & Gamble, and Celgene

Sheraz Mian

Friday June 16 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 Apple (AAPL), Procter & Gamble (PG), and Celgene (CELG).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 >>>

Apple shares are up +24.1% in the year-to-date period, handily outperforming the S&P 500 (up +9%) and the Zacks Technology sector (up +14.2%), with each of the last two earnings releases adding to the stock’s momentum. In the updated research report issued today, the Zacks analyst points out that Apple’s fortunes are tied to its flagship offering, the iPhone, at least in the near term. The buzz surrounding iPhone 8, which is already labeled a super cycle, should allay investors fear about iPhone sales trajectory. Also, the company announced an increase in the share repurchase authorization by $50 billion, taking total authorization to $300 million. Apple raised its quarterly dividend by 10.5%. However, macroeconomic headwinds in some key regions like China and increasing competition remain concerns.

(You can read the full research report on Apple here >>>).

Shares of Procter & Gamble outperformed the Zacks Consumer Staples sector in the past year (+7.7% vs. +5.9%). However, P&G shares have underperformed the S&P 500 index in the year-to-date period (up +6.5% vs. +9%). The company has been struggling to boost market growth for the last few quarters. Also, significant negative forex impact has been hurting sales. But the Zacks analyst likes the fact that P&G is speeding up innovations and investments to counter softening industry growth. Its productivity improvements and aggressive cost-saving efforts are also consistently helping to boost profit levels.

(You can read the full research report on Procter & Gamble here >>>).

Celgene’s shares have gained +4.6% year to date, outperforming the Zacks Medical - Biomedical and Genetics sector which has gained +2.5% over the same period. Celgene’s multiple myeloma drug Revlimid continues to grow on the back of market share gains and increased duration. However, Otezla sales in the first quarter were impacted by managed care dynamics that drove lower total marketplace prescriptions for psoriasis therapies. The Zacks analyst likes Celgene’s ongoing label expansion efforts and pipeline development. The company anticipates several pipeline-related events over the upcoming quarters and next few years.

(You can read the full research report on Celgene here >>>).

Other noteworthy reports we are featuring today include BlackRock (BLK), PayPal (PYPL) and Southern Company (SO).

More Stock News: 8 Companies Verge on Apple-Like Run                   

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Sheraz Mian

Director of Research

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

Apple's (AAPL) iPhone 8 and India Expansion Plans Promising

Procter & Gamble's (PG) Cost Saving Plans Impress, Sales Weak

Celgene's (CELG) Revlimid Looks Strong, Otezla Remains Weak

Featured Reports

High Avg Fee Rate Aids ONEOK (OKS), Varying Weather Woes

Per the Zacks analyst, higher average fee rate will boost ONEOK Partners' top line growth in coming days. Yet, weather fluctuations in its service territories tend to hamper growth.

Rising AUM Aids BlackRock (BLK) Revenues, Higher Costs A Woe

Per the Zacks analyst, growth in AUM continues to support BlackRock's revenues. However, higher compensation and marketing costs owing to its brand campaign is likely to keep overall expenses high.

PayPal (PYPL) Rides on Visa and MasterCard Partnerships

The covering analyst believes that strategic partnerships and mobile centrism are PayPal's major growth drivers.

Loan Growth Aids BB&T's (BBT) Revenues, Higher Costs a Woe

Per the Zacks analyst, impressive loan and deposit growth, improving economy and higher interest rates should continue to support BB&T's revenues.

H&R Block's (HRB) Lower Operating Costs Drive Bottom Line

Per the covering analyst, H&R Block remains focused on lowering operating costs through stringent cost-cutting initiatives to drive bottom-line growth, as exhibited by its solid Q4 performance.

Analog Devices (ADI) Well Poised on Linear Technology Buyout

The Zacks analyst believes that the Linear Technology acquisition coupled with solid positioning in growth markets drive Analog Device's growth.

Intercontinental Exchange (ICE) Rides on Marketwired Buy

Per the Zacks analyst the buyout of Marketwired, a broad product suite, focus on Nasdaq Private Market Alternatives & the Nasdaq Ventures will drive long term growth.

New Upgrades

Xcel Energy (XEL) Gains on New Rate Plans and Low Tax Rate

Per the Zacks analyst, the recently settled Minnesota Multiyear Rate Plan will benefit Xcel Energy's growth. The lower effective tax rate also boosts its bottom line.

Armstrong World (AWI) To Gain from Tectum Buy & Project Wins

The covering analyst appreciates Armstrong World's bid to tap the high-growth category of architectural specialties with Tectum buy. Further, it will also gain from recent major project wins.

Republic Services (RSG) to Benefit from Realigned Services

Per the Zacks analyst, Republic Services is realigning its field support functions to ensure a clear ownership for the recycling and processing market vertical and save $25 million annually from 2018.

New Downgrades

Lower Commercial & Residential Sales Hurt Entergy (ETR)

Per the Zacks analyst, Entergy's residential and commercial sales have been lower than expectations and now an even lower growth rate is expected, leading to lower earnings projection in 2017 and 2018

Southern (SO) Wrecked by Vogtle, Kemper Project Overruns

The covering analyst believes that continued timing and cost overrun issues over two large construction projects - Vogtle and Kemper - will cause an underperformance in Southern Company's shares.

Declining Comps, Debt Burden are Concerns for Kroger (KR)

Per the Zacks analyst, declining comps, waning store traffic and meal-kit delivery services are hurting Kroger's results. Further, the analyst also remains concerned about the high debt load.

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