Wednesday, May 22, 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 Chubb (CB), Las Vegas Sands (LVS) 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 >>>
Chubb’s shares have gained +8.1% in the past year, outperforming the Zacks Property, Casualty and Title industry, which has increased +2.8% over the same period. The Zacks analyst thinks the company benefits from a suite of compelling products as well as services. Its inorganic growth story is impressive, helping it to achieve a higher long-term ROE.
Increased scales, efficiencies and a solid balance sheet will lend it a competitive edge. It estimates solid growth in Overseas General operations, which includes both commercial and consumer lines. A strong capital position aids Chubb to boost shareholders’ value and invest in strategic initiatives for driving growth.
However, exposure to cat loss remains a concern as it induces volatility in underwriting profitability. Also, mounting expenses weigh on margin expansion. Chubb Limited’s first-quarter 2019 core operating income of $2.54 per share outpaced the Zacks Consensus Estimate of $2.49 by 2% and also improved 8.5% year over year on the back of robust premium growth and net investment income.
(You can read the full research report on Chubb here >>>).
Shares of Buy-ranked Las Vegas Sands have gained +15.7% over the past six months, outperforming the Zacks Gaming industry’s increase of +11%. The Zacks analyst thinks that increased revenues at casino, rooms and mall drove the company’s top line in first-quarter 2019. It generated solid revenues from Macao operations as well.
In the next couple of years, the company is likely to spend $2 billion in Macao. To strengthen the resort portfolio, Las Vegas Sands is focusing on expanding the Four Seasons Tower Suites Macao, St. Regis Tower Suites Macao and the Londoner Macao. Planned investment in new capital projects in Macao and higher revenues from The Parisian Macao are also likely to drive growth.
Las Vegas Sands’ consistent focus on a convention-based Integrated Resort business model is an added positive. Nevertheless, high debt and competition are worrisome. Estimates for the current year have witnessed upward revisions in the past 60 days.
(You can read the full research report on Las Vegas Sands here >>>).
Biogen’s shares have underperformed the Zacks Biomedical and Genetics industry year to date (-22.6% vs. +2.2%). Biogen beat estimates for earnings and sales in Q1. The Zacks analyst thinks the Biogen has a strong position in the MS market. Efforts to diversify beyond MS to other areas like Alzheimer’s, Parkinson's and stroke among others are encouraging.
Meanwhile, its newest drug Spinraza is performing well and has multi-billion dollar potential. Biogen’s effort to regularly in-license assets to build its pipeline is a major positive with several having transformative potential. Several data readouts are expected in 2019/2020 with multiple potential launches in the early 2020s.
However, its core MS business, excluding Ocrevus royalties, has been on a declining trend. Also, potential competition to Spinraza from competitors’ gene therapy programs for SMA is a concern. Though Biogen’s CNS pipeline is attractive, it is a high-risk area.
(You can read the full research report on Biogen here >>>).
Other noteworthy reports we are featuring today include Duke Energy (DUK), Dollar General (DG) and Canadian Pacific (CP).
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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
Inorganic Growth Aids Chubb (CB), Escalating Expenses Hurt
Las Vegas Sands (LVS) Banks on Macao Business to Drive Growth
Biogen (BIIB) Rides on Alliances, Spinraza Competition Lurks
Brokerage Business Buyouts Aid Arthur J. Gallagher (AJG)
Per the Zacks analyst, several acquisitions made by the company in its Brokerage business over the past many years have led to revenues growth. It has a strong pipeline of acquisitions going forward.
Freight Revenues Aid Canadian Pacific (CP), High Costs Ail
The Zacks analyst is appreciative of Canadian Pacific's top-line growth owing to the rise in freight revenues. However, the company's high operating expenses are affecting bottom-line growth.
Product Launches Aid CNH Industrial (CNHI) Amid Rising Costs
Per the Zacks analyst, technologically-enhanced product launches across all segments is driving CNH Industrial.
Adhesive Dispensing Drives Nordson (NDSN), High Costs Hurt
Per the Zacks analyst, impressive traction of Nordson's Adhesive Dispensing Systems segment, fueled by solid organic growth should continue to drive its revenues.
Murphy USA (MUSA) to Gain from Proximity to Walmart Stores
The Zacks analyst believes that the proximity of Murphy USA's fuel stations to Walmart stores helps in leveraging their strong and consistent traffic.
Downstream Expansion Aids Huntsman (HUN), Input Costs a Woe
While Huntsman faces margin pressure from higher raw material costs, it should gain from initiatives to grow its downstream specialty and formulation businesses, per the Zacks analyst.
New Product Sales Boost Mylan (MYL) Amid Competitive Pressure
Per the Zacks analyst, new products like Wixela, Fulphila and the generic version of Copaxone continue to gain market share for the company.
Dollar General's (DG) Sturdy Comps Run to Propel Top-Line
Dollar General boasts impressive comparable sales run. Per the Zacks analyst, the company's better price management, merchandise, cost containment and operational initiatives should drive sales.
Hewlett Packard (HPE) Rides on Solid Intelligent Edge Growth
Per the Zacks analyst, Hewlett Packard is benefiting from strong growth in its Intelligent Edge segment, driven by Aruba Services and Aruba Product revenues.
Inovio's (INO) Early/Mid-Stage Vaccine Pipeline Aids Growth
Per the Zacks analyst, Inovio's most advanced candidate, VGX-3100 vaccine, is progressing well. Collaboration with partners to develop its other candidates also bodes well for the company's growth.nn
Environmental Rules, Commodity Prices Hurt Duke Energy (DUK)
Per the Zacks analyst, rigid environmental rules and compliance cost may hinder company's performance. Potential volatility in market prices of fuel and electricity could create operational risks.
Sluggish BD Life Sciences Arm Plagues Becton, Dickinson (BDX)
Becton, Dickinson's core BD Life Sciences unit has seen softness in recent times. The Zacks analyst is also apprehensive about near-term headwinds in the company's DCB business.
Dr. Reddy's (RDY) Faces Pricing Issues in Generic Markets
The Zacks analyst believes that generics industry is facing pricing pressures due to enhanced channel consolidation and increased competitive pressure on sales of some of its key generic products.
Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Dollar General Corporation (DG) : Free Stock Analysis Report
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
Chubb Limited (CB) : Free Stock Analysis Report
Biogen Inc. (BIIB) : Free Stock Analysis Report
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