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Top Analyst Reports for Boeing, Thermo Fisher & Anthem

Mark Vickery
Top Analyst Reports for Boeing, Thermo Fisher & Anthem

Friday, February 01, 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 Boeing (BA), Thermo Fisher (TMO) and Anthem (ANTM). 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 >>>

Strong Buy-ranked Boeing’s shares have gained +10.5% in the past year, outperforming the Zacks Aerospace & Defense industry, which declined -6% during the same time period. Boeing ended 2018 on an impressive note. The company’s fourth quarter earnings as well as revenues exceeded the respective expectations.

The Zacks analyst emphasizes that the company is the largest aircraft manufacturer in the world. The company’s 20-year market outlook forecasts commercial jetliner demand to increase by 4.1%, with single-aisle jets being the major driver behind this demand growth. Boeing expects the commercial fleet to be fueled by sustained annual growth in commercial passenger traffic along with a big wave of retiring, old planes.

Boeing’s strong balance sheet and cash flows provide financial flexibility in matters of incremental dividend, ongoing share repurchases and earnings accretive acquisitions. However, this aerospace giant may face competitive challenges if new manufacturers like China enter the commercial jet space.

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

Shares of Thermo Fisher have outperformed the Zacks Medical Instruments industry in the past three months (+4.9% vs. +0.5%). Thermo Fisher ended the fourth quarter 2018 on a promising note showing strength in all end markets categorized either by customer type or geography.

The company registered particularly solid international performance with strong growth in Asia-Pacific including China. Also, a series of product launches with progress in precision medicine initiatives aided its performance.

The Zacks analyst is currently optimistic about the company’s recent purchases of Advanced Bioprocessing business from BD and its initiative to buy Gatan to boost its electron microscopy suite. Even after considering the impact of the company’s impending divestiture of its Anatomical Pathology business, 2019 guidance looks pretty encouraging.

On the flip side, Thermo Fisher’s business segments are getting impacted by unfavorable business mix. Also, competitive headwinds and escalating costs pose a threat.

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

Buy-ranked Anthem’s shares have outperformed the Zacks Medical Insurance industry's rally in the past year (up +26.7% vs. +17.3%). Anthem’s fourth-quarter 2018 earnings surpassed expectations by 10.9%. The bottom line soared 89.1% year over year, driven by a solid operating performance and contribution across all core businesses.

The Zacks analyst thinks the company's prudent acquisitions and an improving top line have paved the way for long-term growth. A diverse product portfolio has also helped the company enhance its underwriting results. Anthem’s strong capital position backs effective capital deployment via share buybacks and regular dividends.

However, its declining membership is a persistent concern. Also, the company has been suffering from high benefit costs and rising selling, general and administrative expenses.

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

Other noteworthy reports we are featuring today include PayPal (PYPL), Pfizer (PFE) and Equity Residential (EQR).

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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

Air Traffic Growth, JV With Embraer to Boost Boeing (BA)

Strategic Buys, End-Market Strength Aid Thermo Fisher (TMO)

Accretive Acquisitions Aid Anthem's (ANTM) Revenues

Featured Reports

Equity Residential (EQR) to Benefit From Solid Demographics

Per the Zacks analyst, Equity Residential will likely see healthy rental housing demand amid job gains and favorable demographics in its markets.

AMD Rides on Vega-Based GPU Product Rollouts & Partnerships

Per the Zacks analyst, Advanced Micro's release of Radeon RX Vega family of GPUs and alliance with companies like Baidu, Amazon, Tencent, Microsoft and JD.com will drive the top and bottom line.

Restructuring Aids Ameriprise (AMP), Asset Outflows a Woe

Per the Zacks analyst, Ameriprise's efforts to restructure business and modify product offerings will support revenues growth.

SAP Rides on Cloud Initiatives & Growth in S/4HANA Platform

Per Zacks analyst, SAP's resilient Cloud and Software business, act as staple growth drivers.

Loan & Deposit Growth Aid Zions (ZION), Costs a Concern

Per the Zacks analyst, loan and deposit growth, higher interest rates and strong balance sheet will likely support Zions, while elevated operating costs due to investment in franchise is a concern.

Industrial Segment Aids Graco (GGG), High Costs Pose Concern

Per the Zacks analyst, strong traction of Graco's Industrial segment, fueled by broad-based market demand for its products should continue to drive revenues.

Loan Growth Aids BankUnited (BKU), Pressure on Margins a Woe

Per the Zacks analyst, increased proportion of commercial loans, efforts to improve fee income and strong balance sheet support BankUnited.

New Upgrades

Improved Operating Ratios, Dividends Buoy Knight-Swift (KNX)

The Zacks analyst likes the company's efforts to reward shareholders through dividends. Improvement in operating ratio across segments also bode well. Efforts to enhance safety are encouraging too.

CACI International (CACI) to Ride on Buyouts, Contract Wins

Per the Zacks analyst, CACI's regular contract wins and large contract pipeline are driving growth. Also, buyouts like that of CSRA's engineering and acquisition support unit are major positives.

High Equipment Demand & Healthy Backlogs Aid Oshkosh (OSK)

Per the Zacks analyst, solid equipment rental market in key global markets drives Oshkosh's access equipment segment.

New Downgrades

Generic Woes, Currency Issues to Hurt Pfizer's (PFE) 2019 Sales

The Zacks analyst believes Pfizer revenues in 2019 will be hurt by loss of exclusivity of key drugs mainly Lyrica in the United States and currency headwinds.

Weakening Steel Prices, Raw Materials Unit Ail Nucor (NUE)

The Zacks analyst thinks softening U.S. steel prices will be a drag on Nucor's profitability. The company's Raw Materials segment also faces challenges from weak performance of its DRI businesses.

PayPal (PYPL) Hurt By eBay Slowdown, Adverse FX Translation

Per the Zacks analyst, slowdown in eBay volume growth is a major headwind for PayPal. Moreover, deceleration in its cross-border trade growth due to strong U.S. dollar is an overhang.

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