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Top Research Reports for Abbott, Netflix & Philip Morris

Mark Vickery
Top Research Reports for Abbott, Netflix & Philip Morris

Friday, July 19, 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 Abbott (ABT), Netflix (NFLX) and Philip Morris (PM). 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 >>>

Outperform-rated Abbott’s shares have gained +38.6% over the past year, significantly outperforming the Zacks Medical Products industry, which has increased +6.4% over the same period. Abbott exited second quarter 2019 with better-than-expected earnings. However, revenues lagged the estimates.

The Zacks analyst likes the strong and consistent EPD and Medical Devices performance. The company has been stealing the limelight within Diabetic Care on growth with FreeStyle Libre. This apart, synergies from Alere consolidation in the form of Rapid Diagnostics have been driving growth. Within Structural Heart, worldwide uptake of MitraClip therapy improves further.

Meanwhile, the company’s emerging market performance has been promising. Consequently, Abbott has raised its full-year guidance. On the flip side, sluggish Rhythm Management arm in the United States continues to dent growth. Increasing currency headwinds is another downside.

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

Shares of Netflix have gained +21.5% year to date, underperforming the Zacks Broadcast Radio and Television industry’s rally of +22.8% during the same period. Netflix’s second-quarter 2019 subscriber additions rate faltered primarily due to price hike in a number of regions and a weak content slate.

The company also blamed the record addition (9 million) of subscribers in the first quarter which resulted in a pull-forward effect for the decline. Although Netflix provided an optimistic third-quarter view, The Zacks analyst thinks the streaming giant will face hard times due to increasing competition in the video streaming space.

However, Netflix believes that lost shows will free-up its budget that it can then spend on original content. Moreover, partnerships with Telefonica, KDDI, AT&T, Comcast, DISH, Verizon, Charter, Altice, T-Mobile and Sky bode well for the streaming platform.

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

Philip Morris’ shares have gained +4.1% in the past three months, outperforming the Zacks Tobacco industry, which has declined -1.1% over the same period. The Zacks analyst thinks sturdy bottom-line trend along with efficient pricing and gains from growth of IQOS in the RRPs arena has been boosting the stock.

These upsides made a positive impact on second-quarter results, wherein earnings and revenues beat expectations. Also, earnings improved year on year. Further, management raised its view for 2019. The company is on track to bolster the RRPs space and plans to invest nearly $400 million in this arena in 2019.

However, persistent softness in the cigarette unit is weighing on Philip Morris’ top-line performance. Cigarette shipment volumes are expected to continue declining in 2019. Conventional cigarettes are being weighed down by stringent policies and fading consumer interests. Moreover, unfavorable currency movements are a threat.  

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

Other noteworthy reports we are featuring today include Bristol-Myers (BMY), United Technologies (UTX) and Novartis (NVS).

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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

Abbott (ABT) EPD Gains in Emerging Countries on Branded Generics

User Addition Rate Decline Hurts Netflix's (NFLX) Prospects

Reduced Risk Products to Keep Driving Philip Morris (PM)

Featured Reports

Opdivo, Eliquis Fuel Bristol-Myers (BMY) Amid Competition

Per the Zacks analyst, label expansion of immuno-oncology drug Opdivo and strong Eliquis fuel Bristol-Myers. However, competition is stiff for Opdivo and pipeline setbacks are a concern.

New Launches Boost Novartis (NVS) Amid Generic Competition

Per the Zacks analyst, key drugs like Cosentyx, Entresto and Lutathera, and new launches like Zolgensma and Piqray boost Novartis' growth prospects. However, generic competition is a concern.

Strong Card Business Aids Alliance Data (ADS), High Costs Ail

Per the Zacks analyst, Allice Data is poised for growth banking on its sturdy Card Service segment having highest earnings, highest growth assets.

Domino's Pizza (DPZ) Rides on Robust International Sales

Per the Zacks analyst, Domino's remains committed to accelerate its presence in international markets. Second-quarter 2019 marked the 102nd straight quarter of positive international same-store sales.

Ryder's (R) Dividends & Buybacks Bode Well, High Capex a Woe

The Zacks analyst appreciates the company's efforts to reward its shareholders. However, elevated capital expenditures are weighing on the bottom line.

Rise in Interest Income Aids Synovus (SNV), High Costs A Woe

Per the Zacks analyst, Synovus is well poised to enhance its interest income driven by steady growth in loan demand and gradual economic recovery.

Innovations to Aid Textron (TXT) Amid Poor Cash Position

Per the Zacks analyst, Textron frequently innovates products to capture increased shares in the market.

New Upgrades

Strong Aerospace Business Boosts United Technologies (UTX)

Per the Zacks analyst, impressive performance of United Technologies' aerospace business, led by strength in its commercial aftermarket and military end markets, will lend momentum to the company.

Strong Trading Volumes, Balance Sheet Aid MarketAxess (MKTX)

Per the Zacks analyst, foreign opportunities and a diverse suite of trading products has led to high trading volumes which are driving revenues. Strong balance sheet powers investment for growth.

Sarepta's (SRPT) Impressive Exondys 51 Sales Drives Revenues

Per the Zacks analyst, Sarepta's sole marketed drug, Exondys 51, has shown impressive sales growth last year and the trend is expected to continue this year. This is driving revenues of the company.

New Downgrades

Rising Costs on Digitization Moves Hurt First Republic Bank (FRC)

Per the Zacks analyst, rising expenses on digitization moves continues to impact First Republic Bank???s bottom line. Moreover, further investments in digital initiatives might escalate costs.

SG&A Expenses & Shifting Spending Habits Ail O'Reilly (ORLY)

Per the Zacks analyst, opening of stores and distribution centres are adding to O'Reilly's SG&A expenses. Also, shifting spending habits are pressurizing same-store revenue growth from DIY customers.

Low Gas Prices, Currency Fluctuation Ail Pattern Energy (PEGI)

Per the Zacks analyst Pattern Energy's non-U.S. operations exposes it to foreign-currency fluctuation. Rising competition from low priced natural gas is a headwind.

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United Technologies Corporation (UTX) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
Novartis AG (NVS) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Bristol-Myers Squibb Company (BMY) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
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