Top Research Reports for Amazon, AbbVie & Biogen
Wednesday, November 29, 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 Amazon (AMZN), AbbVie (ABBV) and Biogen (BIIB). 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 >>>
Amazon’s shares have outperformed the broader market in the year-to-date period (the stock is up +59.2% vs. the +17.7% gain for the S&P 500 as a whole). Amazon is benefiting from strong growth in all its businesses and especially the retail business remains very hard to beat on price, choice and convenience.
The Zacks analyst likes Amazon’s solid loyalty system, Prime. Its FBA strategy and content additions continue to add selection to Prime memberships. AWS generates much higher margins than retail, thus significantly impacting Amazon’s profitability. Devices and IoT are also potential growth areas.
However, increased operating expenses to support expansion of its business into new markets and territories, localize the availability of products and grow its content will keep margins under pressure.
(You can read the full research report on Amazon here >>>).
Shares of AbbVie have gained +52.4% year to date, outperforming the Zacks Large Cap Pharmaceuticals industry, which has gained +16.2% over the same period. AbbVie’s key drug Humira has been performing well. At the Q3 earnings call, AbbVie raised its long-term target for Humira sales based on strong demand trends for the drug, despite new competition.
Moreover, Imbruvica has multibillion dollar potential and AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases. Meanwhile, the past 2-3 months have been strong for the company as it presented promising data from several pivotal studies and gained regulatory approvals in the U.S., Europe, and Japan for its competitive HCV medicine Mavyret.
Additionally, it gained FDA approval for the sixth indication for Imbrivica and settled its Humira patent disputes with Amgen. Also, several pivotal data readouts and regulatory milestones are expected in 2018. However, HCV sales continue to be hurt by intensifying competition.
(You can read the full research report on AbbVie here >>>).
Biogen's shares have outperformed the Zacks Biomedicals/Genetics industry in the last six months (+28.6% vs. +2.3%). Biogen has a strong position in the MS market with a wide range of products including Avonex, Tysabri, Tecfidera & Plegridy. The Zacks analyst also likes Biogen’s efforts to diversify beyond MS to other areas like Alzheimer's, Parkinson's, stroke, among others.
Meanwhile, Spinraza has witnessed strong patient uptake in the U.S. and internationally. However, weakening MS trends is a concern. Tecfidera is witnessing slight decline in U.S. patient demand due to increasing competition from oral medicines and a slowdown in the overall MS market.
The recent Ocrevus launch by Roche is beginning to have a negative impact on MS franchise sales in the U.S., mainly Tysabri. At the call, the company said that seasonality and continued competitive pressure from Ocrevus’ launch will hurt the performance of its MS franchise in Q4.
(You can read the full research report on Biogen here >>>).
Other noteworthy reports we are featuring today include McCormick (MKC), Helmerich & Payne (HP) and Hyatt (H).
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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
Amazon (AMZN) Prime and AWS Impress, Rising Expenses a Worry
AbbVie's (ABBV) Humira Blossoms in a Crowded Space
Biogen's (BIIB) Multiple Sclerosis Products Face Competition
Featured Reports
NRG Energy (NRG) Gains From Transformation Plan & Drop-Down
The Zacks analyst believes NRG Energy gains from its Transformation Plans, which are helping in cost savings and debt reduction. In addition, drop-down of assets to NRG Yield is boosting liquidity.
Cimarex (XEC) Banks on Permian Acreage, Debt Burden Hurts
While Cimarex Energy's Permian Basin and Mid-Continent premium acreages bode well, the covering analyst is worried about the company's high-debt burden.
Aduro (ADRO) Boasts Strong Pipeline, Cancer Space Crowded
Per the Zacks analysts, Aduro's progress with its pipeline of novel immunotherapies bodes well for growth. However, competition from biotech giants in the cancer space may weigh heavily on the top-lin
Hawaiian (HA) Buoyed by Unit Revenue Growth Amid High Costs
The Zacks analyst likes the company's performance with respect to unit revenues. The carrier's history with respect to punctuality is encouraging. However, high costs are limiting bottom line growth.
Permian Expansion, Sandbox Buyout Aid U.S. Silica (SLCA)
The Zacks analyst thinks the company should gain from its expansions initiatives in the fast-growing Permian Basin.
Hyatt (H) Banks on Expansion & Miraval Buyout, Europe a Risk
The Zacks analyst expects Hyatt's differentiated brands, expansion plans and Miraval purchase to spur growth.
Escalating Senior Housing Supply to Weigh on Ventas (VTR)
Per the Zacks analyst, elevating supply of senior housing properties in Ventas' key markets might moderate rent and occupancy growth.
New Upgrades
Helmerich & Payne (HP) Buoyed by Strong FlexRig Demand
Helmerich & Payne's technologically-advanced FlexRigs and the improving U.S. land market outlook has made the Zacks analyst turn bullish on the contract driller.
Affordable Programs to Boost Strayer's (STRA) Enrollments
Strayer Education's convenient, affordable and flexible educational programs are likely to boost enrollment and thereby revenues, per the Zacks analyst.
CNA Financial (CNA) Set to Grow on Sturdy Underwriting
Per the Zacks analyst, CNA Financial is poised for growth banking on solid underwriting, demonstrated by improving combined ratio. Improving rate environment and solid capital position raise optimism.
New Downgrades
Hawaiian Electric (HE) Hurt by Rising Fuel Oil Price Expenses
Per the Zacks analyst, Hawaiian Electric is witnessing higher fuel oil price expenses that elevate its total costs. Such rising expenses may drag down the operating profits of the company.
High Raw Material Costs Remain a Worry for McCormick (MKC)
Per the Zacks analyst, higher raw material costs, mainly that of vanilla and garlic have been a concern for McCormick of late. in 2017, management expects material cost inflation in mid-single digits.
Debt Load a Concern for Central Garden & Pet (CENT)
Per the Zacks analyst, high debt level may impact Central Garden & Pet's credit worthiness. Further, an increase in interest expenses, which rose 9% in the fourth quarter, may hurt bottom line.
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McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report
Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report
Hyatt Hotels Corporation (H) : Free Stock Analysis Report
Biogen Inc. (BIIB) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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