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Top Analyst Reports for Bristol-Myers Squibb, Lockheed Martin & Alphabet

Mark Vickery

Monday, September 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 Bristol-Myers Squibb (BMY), Lockheed Martin (LMT) and Alphabet (GOOGL). 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 >>>

Bristol-Myers Squibb’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry in the past six months (+6.5% vs. -3%). The Zacks analyst thinks that Bristol-Myers’ lead immuno-oncology drug, Opdivo, continues to drive growth. Label expansion of the drug into additional indications should further boost the top line.

Empliciti and Sprycel are also performing well on label expansion. Moreover, Bristol-Myers has presence in other core therapeutic areas, including immunoscience and cardiovascular. Blood thinner drug, Eliquis, is expected to drive further growth, propelled by increased share in the novel oral anticoagulant market.

Meanwhile, the impending acquisition of Celgene will broaden the company’s oncology portfolio with the addition of the blockbuster drug, Revlimid. However, pipeline setbacks are concerns. The failure of the part 2 of the Checkmate-227 study was disappointing, given the potential in the NSCLC market.

(You can read the full research report on Bristol-Myers Squibb here >>>)

Shares of Lockheed Martin have gained 7.9% in the past three months, outperforming the Zacks Aerospace Defense industry’s rise of 5.1%. The Zacks analyst believes that Lockheed Martin enjoys strong demand for its high-end military equipment in domestic and international markets.

Lockheed Martin is also the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs. As a result, it witnesses solid order growth. In a year’s time, Lockheed Martin has outperformed the industry.

However, the company’s higher debt-to-equity ratio shows that the stock is highly leveraged when compared with its industry. Lockheed Martin also faces intense global competition for its broad portfolio of products and services. Additionally, suspension of the Turkish contract for the F-35 program may hurt the company’s operating results.

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

Alphabet’s shares have gained 17.7% year to date, outperforming the Zacks Internet Services industry’s rise of 3.8% over the same period. The Zacks analyst believes that Alphabet will continue to be driven by improving search & advertising revenues, hardware and AI.

The company’s strong focus on bolstering its presence in the cloud market on the back of expanding data centers and robust cloud offerings continues to aid growth. Its initiatives toward elimination of bad ads and introducing useful major search updates are tailwinds.

Google’s robust mobile search is also a positive. Its strong focus on innovation of its AI techniques and the home automation space is aiding business growth. However, the company’s growing litigation issues, growing competition and increased spending on YouTube might hurt profitability.

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

Other noteworthy reports we are featuring today include Alibaba Group (BABA), Allergan (AGN) and Kinder Morgan (KMI).

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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

Label Expansions of Opdivo, Eliquis Fuel Bristol-Myers (BMY)

Robust Demand Aids Lockheed (LMT), F-35 program's Cost Hurts

Alphabet (GOOGL) Rides on Diversification; Legal Troubles Ail

Featured Reports

Allergan (AGN) Rides on Botox Sales, Generic Woes Remain

Allergan's key products like Botox are supporting sales. Potential generic competition for Restasis, fears of new competition to Botox and recent pipeline setbacks is a concern per the Zacks analyst.

Kinder (KMI) Poised for Huge Gains From PHP Pipeline Project

The Zacks analyst believes that Kinder Morgan will earn massive profits from its Permian Highway Pipeline (PHP) project. However, its debt burden may restrict financial flexibility.

Premium Content Demand & Solid Partner Base Aids Snap (SNAP)

Per the Zacks analyst, Snap is benefiting from solid demand for premium content including Shows.

eBay (EBAY) Rides on Marketplace Growth; Competition A Risk

The Zacks analysts believes that growth in eBay's core marketplace business, AI initiatives and mobile strategy are major positives.

Strategic Initiatives Aid Aon (AON), Rising Debts Hurt

Per the Zacks analyst, a number of acquisitions and collaborations have helped Aon enhance its capabilities, which has in turn improved its bottom-line.

Business Wins Aid State Street (STT) Amid Low Interest Rates

Per the Zacks analyst, new business wins, inorganic growth efforts and strong liquidity position will aid State Street.

Acquisitions Bode Well for D.R. Horton (DHI), High Costs Ail

Per the Zacks analyst, D.R. Horton is expected to gain from solid acquisition strategy, industry-leading market share and affordable products. Yet, higher land, labor and material costs hurt.

New Upgrades

Transformation Plan to Aid NRG Energy (NRG) Via Cost savings

Per the Zacks analyst, NRG Energy's balance sheet is likely to get a boost from its Transformation Plan. Under this plan, the company is on track to realize $590 million of cost savings in 2019.

Dr. Reddy's (RDY) Boasts Strong Presence in Generic Market

Per the Zacks analyst, Dr. Reddy's enjoys a strong position in the generics market. Efforts on strengthening its presence in the biosimilars market have been commendable too.

Alibaba (BABA) Rides On New Investments & Cloud Growth

Per the Zacks analyst, Alibaba continues to benefit from its strong core e-commerce business, new investments in Asia, international growth opportunities and growing cloud computing services.

New Downgrades

Currency Exposure & Competition Hurt Citrix Systems (CTXS)

Per the Zacks analyst, increasing competition from all product group segments, high costs and significant exposure to foreign markets remain major headwinds.

Rising Costs, Sluggish GeneSight Sales Irk Myriad (MYGN)

The Zacks analyst is worried that Myriad's recent escalation in operating expenses is putting pressure on its bottom line. Also, decline in GeneSight sales on poor testing volume is a concern.

High Debt, Lower Copper Prices Hurt Southern Copper (SCCO)

Per the Zacks analyst, high debt levels, lower copper prices owing to escalating trade-war tensions and Brexit-related concerns will weigh on Southern Copper's results.

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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Bristol-Myers Squibb Company (BMY) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
Allergan plc (AGN) : Free Stock Analysis Report
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