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Top Analyst Reports for Estee Lauder, Becton, Dickinson & Applied Materials

Mark Vickery

Tuesday, August 20, 2019

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features updated research reports on 16 major stocks, including Estee Lauder (EL), Becton, Dickinson (BDX) and Applied Materials (AMAT). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Estee Lauder’s shares are up +43.5% in the past year, outperforming the Zacks Cosmetics industry, which is up +25.9% over the same period. The Zacks analyst thinks that this is largely attributable to the company’s robust sales and earnings history, backed by growth across most brands as well as sales channels.

The trend continued in the fourth quarter of fiscal 2019, wherein the top and the bottom line surpassed estimates and rose year on year. Performance in the quarter and fiscal 2019 was supported by growth in emerging markets, strong travel retail and online sales. Additionally, management provided an optimistic view for fiscal 2020 and for the first quarter.

However, the company is mindful regarding certain headwinds such as soft retail trends in the United States and the U.K., costs related to Brexit, impact of tariffs in China as well as moderation of sales in China and travel retail network. Moreover, adverse currency rates are a concern.

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

Shares of Becton, Dickinson have outperformed the Zacks Dental Supplies industry in the past year, losing -0.6% vs. -5.3%. Becton, Dickinson, also known as BD, exited the fiscal third quarter on a strong note. The Zacks analyst likes the solid show by the core BD Medical and Interventional units.

Domestic revenues increased year over year in the quarter under review, driven by segmental strength. Growth was observed in China and EMEA. Expansion in gross and operating margins is another encouraging factor. BD kept its fiscal 2019 guidance intact. However, sluggishness in the core Life Sciences unit raises concern. International sales also declined in the quarter.

Contraction in operating margins is a concern. Management expects unfavorable foreign currency to partially mar BD’s bottom line in fiscal 2019. Stiff competition in the MedTech space adds to the company’s woes.

(You can read the full research report on Becton, Dickinson here >>>).

Applied Materials’ shares have outperformed the Zacks Semiconductor Equipment - Wafer Fabrication industry in the past three months (+14% vs. +11.8%). Applied Materials reported fiscal third quarter results wherein both earnings and revenues topped the estimates.

The company witnessed solid customer spending in foundry and logic, thanks to IoT, communications, automotive, power and sensor applications. The company also experienced solid momentum across United States and Taiwan during the reported quarter. The Zacks analyst remains optimistic about the price elasticity of NAND, which is expected to bolster NAND customer spending in the near term.

The company’s expanding etch footprint bodes well for its semiconductor portfolio. However, market uncertainties remain a headwind. Softness in semiconductor and display markets on account of slowdown in memory and display customers’ spending is major concern.

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

Other noteworthy reports we are featuring today include Regeneron (REGN), Aspen (AZPN) and HollyFrontier (HFC).

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Note: Our Director of Research 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

Growth in Emerging Markets to Keep Fueling Estee Lauder (EL)

BD Medical Arm Aids Becton, Dickinson (BDX) Amid Forex Woes

Applied Materials (AMAT) Rides on Foundry & Logic Spending

Featured Reports

Eylea, Dupixent Fuel Regeneron (REGN) Amid Stiff Competition

Per the Zacks analyst, the label expansion of lead drug Eylea and strong performance of asthma drug Dupixent boost Regeneron. However, competition and pipeline setbacks might dent performance.

Robust Product Portfolio & Higher bookings Aid Aspen (AZPN)

Per the Zacks analyst, robust adoption driven by high demand for asset optimization and management solutions, sticky customer base and a strong pipeline for new business bookings are positives.

Generation Projects Aids OGE Energy (OGE), Regulations Hurt

Per the Zacks analyst, OGE Energy's generation projects will likely boost its performance.

Refining Margins Buoy HollyFrontier (HFC) Amid Base Oil Woes

The Zacks analyst believes stronger refining margins should bolster HollyFrontier's earnings.

bluebird (BLUE) Focuses on Developing Pipeline Amid Competition

Per the Zacks analyst, bluebird's efforts to develop its pipeline is impressive.

Partner Base Expansion Aids Grubhub (GRUB) Amid Competition

Per the Zacks analyst, partnerships with the likes of Taco Bell, Dunkin Bands and Shake Shack boost Grubhub's prospects amid rising competition from UberEats and DoorDash.

Allergan (AGN) Buyout by AbbVie Rewarding for Shareholders

With Restasis expected to face generic competition, fears of new competition to Botox and recent pipeline setbacks, the merger with AbbVie may be rewarding for its shareholders, per the Zacks analyst.

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.

Fossil's (FOSL) Margins to Gain on New World Fossil plan

Per the Zacks analyst, the New World Fossil plan helped lower costs and aid gross margin in second-quarter 2019. Fossil expects to achieve run-rate savings of $200 million from this plan in 2019.

Dr. Reddy's (RDY) Strong Position in Generics Market Impressive

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.

New Downgrades

Weakness in Kate Spade, High SG&A Worry for Tapestry (TPR)

Per the Zacks analyst, softness in Kate Spade is likely to persist in the near term and may hurt Tapestry's sales. Also, expectation of higher SG&A in the first quarter may hurt margins to an extent.

End-Market Uncertainties to Hurt Applied Industrial (AIT)

Per a Zacks analyst, Applied Industrial is cautious about uncertainties related to the broader industrial cycle. It predicts organic sales to decline 1-5% in fiscal 2020.

Decline in GeneSight Revenue Deters Myriad Genetics (MYGN)

The Zacks analyst is concerned about revenue decline within GeneSight, Vectra as well as Prolaris. Foreign exchange headwinds and escalating expenses continue to plague Myriad Genetics.

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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
HollyFrontier Corporation (HFC) : Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
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