U.S. Markets open in 7 hrs 35 mins

Top Research Reports for Eli Lilly, Halliburton & Monster Beverage

Mark Vickery

Thursday, August 10, 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 Eli Lilly (LLY), Halliburton (HAL) and Monster Beverage (MNST).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 >>>

Pharmaceutical stocks have been under pressure since last year on pricing and regulatory concerns and Eli Lily shares have been no different. That said, the stock has done modestly better than the peer group; it is up +12.2% year to date vs. +10.9% gain for the Zacks Pharma industry and +9.5% increase for the Zacks Medical sector as a whole. Lilly’s second-quarter 2017 results were strong with the company beating estimates on both counts.

The company also raised its sales and earnings outlook for the year. Lilly’s new products like Trulicity, Taltz, Basaglar, Cyramza, Jardiance and Lartruvo have been performing well and the trend is expected to continue. The Zacks analyst is encouraged by the fact that Lilly expects to launch 20 new products between 2014 and 2023, including at least two new indications/line extensions on an average every year.

However, Alimta will continue to be impacted by competition. Other headwinds include competition from immuno-oncology agents as well as loss of exclusivity for many drugs.

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

Oil-related stocks have been under pressure this year on stubborn global crude glut and Halliburton shares have been no different. That said, the stock has done better than the peer group; it is down -23.6% in 2017 vs. -31.2% loss for the Zacks Oil Field Services industry.

The world’s No. 2 oilfield-services provider reported strong Q2 profit thanks to improved utilization and pricing gains in North America. Halliburton's 12th consecutive quarterly beat was aided by cost saving initiatives. HAL is also set to gain from the Summit ESP buyout on account of the latter’s expertise in extending the life of shale wells.

However, pricing pressure across the international markets is likely to dampen investor confidence. Moreover, with the failure of the BHI acquisition, HAL had to book a massive $3.5 billion in breakup charges that stretched its balance sheet. Hence, the Zacks analyst thinks investors should wait for a better entry point before buying shares in HAL.

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

Monster Beverage’s shares have gained +17.4% year to date, outperforming the Zacks Soft Drink industry’s gain of +13.9% during the same period. Monster Beverage’s earnings missed expectations but increased.6% year over year on higher sales. The international segment posted strong results and looks well positioned for the days ahead.

The Zacks analyst likes the fact that the company has several new products lined up for the remaining of 2017 which are likely to boost sales. The company successfully launched or transitioned Monster Energy Drinks to Coca-Cola bottlers in a number of markets in the quarter and expects further transitions and launches in the second half of the year. However, operating expenses continue to rise. Results were also hurt by unfavorable currency rates which dented quarterly net sales.

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

Other noteworthy reports we are featuring today include Huntington Bancshares (HBAN), Wellcare Health (WCG) and Liberty Global (LBTYA).

3 Top Picks to Ride the Hottest Tech Trend                

Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...

Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>

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

Lilly's (LLY) New Drugs to Drive Sales; Alimta Woes Remain


Robust North American Land Activity Boosts Halliburton (HAL)


Monster Beverage (MNST) Strong on TCCC Deal, Fx Woes Stay


Featured Reports

Newfield (NFX) Banks on Oil-Rich Anadarko Basin, Debts High

Newfield's strong focus on crude shale plays in the Anadarko Basin will drive oil production. However, excessive reliance on debt will hurt the firm, per the Zacks analyst.

Loan Growth Aids Huntington (HBAN), Concentration Risk a Woe

The Zacks analyst believes that improving economy has helped Huntington witness growth in loan and deposits. However, huge exposure to commercial loans in the loan portfolio can be risky.

EndoPredict Reimbursements Globally Buoy Myriad (MYGN)

The Zacks analyst is bullish on Myriad Genetics receiving several reimbursement approvals worldwide for EndoPredict.

Liberty Global (LBTYA) to Grow on Merger & Acquisitions

Per the Zacks analyst, Liberty Global is likely to grow strong on proposed buyout of UTV Ireland TV stations, Cable & Wireless Communications, while a competitive video market raises concern.

Margin Pressure Woes Hurt Regal Beloit (RBC) Profitability

Per the Zacks analyst, Regal Beloit is witnessing a decline in its product prices, which will hurt its overall margins.

CH2M Buyout to Boost Jacobs (JEC) Amid Market Headwinds

Jacobs intends to become a $15-billion global solutions provider with CH2M acquisition. However, the Zacks analyst perceives that headwinds like volatility in energy market to limit growth.

Wellcare Health (WCG) Grows on Premiums, Debt Level Ails

Per the Zacks analyst, although Wellcare Health's premium growth and inorganic strategies drive revenues, its continuously rising level of debt that also raises interest expenses, hurt the margin.

New Upgrades

Aerospace & Defense Sales to Fuel RBC Bearings' (ROLL) Growth

The Zacks analyst believes robust demand in the aerospace and defense end markets, as well as effective integration activities of Sargent business will boost RBC Bearings' near-term earnings.

Robust Meat Demand, AdvancePierre Buy Aid Tyson Foods (TSN)

Tyson Foods' AdvancePierre buyout has aided expanding protein packed brands portfolio. Per the Zacks analyst, rising meat demand and incremental volumes will help drive top line.

JC Penney (JCP) New Loyalty Program & Sephora to Drive Sales

Per the Zacks analyst, JC Penney's new loyalty program and improving Sephora stores performance bode well. The company expects a significant improvement in second quarter sales on a sequential basis.

New Downgrades

Horizon (HZNP) Primary Care Unit Down On New Business Model

Per the Zacks analyst, with the primary care business under pressure, the company needs to ramp up the sales of Krystexxa, Ravicti and Actimmune to maintain top-line momentum.

Drop in Soda Ash Revenues Impact Natural Resource (NRP)

The Zacks analyst believes drop in Soda Ash revenue contribution will hurt the partnership despite a sequential improvement in metallurgical coal price and royalty revenues.

Compliance Cost, Oklahoma's Tornadoes Hurt OGE Energy (OGE)

Per the Zacks analyst, OGE Energy incurs huge compliance cost to abide by regulatory mandates that hover around the stock. Oklahoma's tornadoes damage its distribution lines, hindering its service.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
WellCare Health Plans, Inc. (WCG) : Free Stock Analysis Report
 
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
 
Eli Lilly and Company (LLY) : Free Stock Analysis Report
 
Liberty Global PLC (LBTYA) : Free Stock Analysis Report
 
Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report
 
Halliburton Company (HAL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research