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Top Research Reports for ExxonMobil, Morgan Stanley & Bristol-Myers

Mark Vickery
Top Research Reports for ExxonMobil, Morgan Stanley & Bristol-Myers

Wednesday, May 1, 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 ExxonMobil (XOM), Morgan Stanley (MS) and Bristol-Myers (BMY). 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 >>>

ExxonMobil’s shares have outperformed the Zacks Integrated International Oil industry (+7.2% vs. +1.5%) over the past three months. The Zacks analyst thinks ExxonMobil has a leading position in the energy industry owing to its size and diverse asset base, both in terms of business mix and geographical footprint.

With a stable cash position, the company’s balance sheet is one of the best in the industry. This has allowed ExxonMobil to reward stockholders with a 6.2% average annual dividend hike over the past 37 years. The company owns some of the most prolific upstream assets globally. Notably, with three fresh offshore oil discoveries in Guyana, ExxonMobil recently completed 13 key discoveries in the Stabroek Block.

However, the integrated energy firm recently reported weak first-quarter 2019 results due to significant lower contributions from downstream and chemical businesses. Significant scheduled maintenance activities and the contraction in fuel margin hurt ExxonMobil’s downstream business, whereas the chemical business was hurt by soft margin.

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

Shares of Morgan Stanley have gained +5.5% over the past six months, outperforming the Zacks Investment Banking industry, which has declined -3.6% over the same period. The company possesses an impressive earnings surprise history, having beaten expectations in three of the trailing four quarters. Its first-quarter 2019 results were driven by higher net interest income and decline in costs.

The Zacks analyst thinks the deal to acquire Solium Capital is in sync with the company’s efforts to strengthen its wealth management business. Focus on corporate lending unit, steady loan growth, higher interest rates and normalized levels of trading activities will likely aid revenues. Also, its steady capital deployments indicate a strong liquidity position.

However, slowdown in debt originations will hinder underwriting fee income growth and hurt the company’s investment banking performance. Further, elevated operating expenses remain a major near-term concern.

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

Bristol-Myers’ shares have underperformed the Zacks Large Cap Pharmaceuticals industry in the past six months, losing -8.9% vs. +0.6%. Bristol-Myers beat on both earnings and sales in the first quarter, primarily on robust sales of Opdivo and Eliquis. The Zacks analyst thinks the company’s efforts to develop pipeline products like Opdivo are encouraging.

In January, Bristol-Myers announced that it will acquire Celgene for an equity value of approximately $74 billion to bolster its portfolio. While the deal was previously being opposed by a few shareholders, the merger has now been given a green signal.

However, the company’s voluntary withdrawal of the sBLA seeking approval of Opdivo+Yervoy for the treatment of first-line NSCLC with tumor mutational burden greater or equal to 10 mutations/megabase following discussions with the FDA was disappointing, given the market potential. Competition has stiffened for Opdivo from Merck’s Keytruda and Roche’s Tecentriq.

(You can read the full research report on Bristol-Myers here >>>).

Other noteworthy reports we are featuring today include FirstEnergy (FE), Continental Resources (CLR) and Synchrony Financial (SYF).

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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

ExxonMobil (XOM) Banks on Guyana Oil, Weak Downstream Hurts

Acquisitions Aid Morgan Stanley (MS), Underwriting a Concern

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

Featured Reports

Solid Revenues Aid Synchrony Financial (SYF), High Costs Ail

Per the Zacks analyst, solid revenues on the back of rising interest income and inorganic growth poise the company well for growth. However, escalating expenses are a concern.

Strong Bakken Acreages Aid Continental (CLR) Amid Debt Woes

Per the Zacks analyst, Continental Resources will grow on the back of strong hydrocarbon output from its prolific Bakken properties. However, its debt burden can restrict financial flexibility.

Seattle Genetics' (SGEN) Adcetris Progresses Well Amid Competition

Per the Zacks analyst, Seattle Genetics focuses on improving sales of its lead product, Adcetris.

Nielsen's (NLSN) New Products Drives Revenues, Investments A Risk

The Zacks analyst believes that Nielsen's continuous product launches related to digital ad ratings should drive revenues in the near term. Increased investments could weigh on profits, going forward.

Favorable Budget, Strategic Buyouts to Aid Teledyne (TDY)

Per the Zacks analyst, increasing spending provisions by the latest U.S. defense budget should drive Teledyne's growth. Strategic buyouts like Roper are going to expand its product portfolio.

Helmerich (HP) to Gain From FlexRig Amid Permian Woes

Technologically-advanced FlexRigs help Helmerich to command stronger dayrates.

Cypress (CY) Rides On Strong Auto, Industrial & IoT Platforms

The Zacks analyst believes that Cypress' strength in the auto and industrial segments, new design wins in wireless connectivity and expansion in the IoT market will continue to be growth drivers.

New Upgrades

Energizing the Future Initiative to Aid FirstEnergy (FE)

Per the Zacks analyst, FirstEnergy's modernization drive and "Energizing the Future" plan is progressing well and will upgrade and expand the company's transmission capabilities.

Woodward (WWD) Rides on Healthy Order Trends in Aerospace

Per the Zacks analyst, Woodward is likely to benefit from diligent execution of operational plans and healthy growth dynamics driven by strength in Aerospace segment and improving Industrial segment.

Envigo Swap Deal to Aid LabCorp (LH), Organic Growth Solid

The Zacks analyst looks forward to the synergy benefits that LabCorp should achieve from its global non-clinical research swap transaction with Envigo. Strong organic revenue growth is another upside.

New Downgrades

Rise in Expenses, High Debt Hurt Nasdaq (NDAQ)

Per the Zacks analyst Nasdaq's elevated expenses due to the development and diversification of its business limit margin expansion while high debt level induce increase in interest expenses.

Sluggish North American Market Ails National Oilwell (NOV)

The Zacks analyst believes that the sharp decline in oil prices in the last months of 2018 led to a contraction in orders, which would impact the near-term prospects of National Oilwell.

Tariffs, High Material Costs & Forex Woes Ail Graco (GGG)

Per a Zacks analyst, Graco suffers from higher costs and expenses on account of tariffs, commodity costs inflation and others. Unfavorable movements in foreign currencies are a drag.

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
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Synchrony Financial (SYF) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
FirstEnergy Corporation (FE) : Free Stock Analysis Report
Continental Resources, Inc. (CLR) : Free Stock Analysis Report
Bristol-Myers Squibb Company (BMY) : Free Stock Analysis Report
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