Monday, March 4, 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 Intel (INTC), AbbVie (ABBV) and United Technologies (UTX). 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 >>>
Intel’s shares have outperformed the S&P 500 in the past year, gaining +7.1% vs. +3%. Intel is one of the world’s largest manufacturers of semiconductor products. Rising demand witnessed in company’s higher performance products, both in data center and client domains acted as a catalyst.
The Zacks analyst thinks the company is benefiting from robust performance of the DCG, IoT Group, NVM Solutions and PSG. These segments form the crux of Intel’s data-centric business model. The company’s strategy of expanding TAM beyond CPU to adjacent product lines like silicon photonics, fabric, network ASICs and 3D XPoint memory is bearing fruit.
However, a declining trend in PC shipments is detrimental to business prospects of Intel, which continues to depend substantially on PC sales. Further, the company provided a tepid forthcoming outlook. Also, delays in transition to the 10-nm process is a concern. Moreover, intensifying competition remains a headwind.
(You can read the full research report on Intel here >>>).
Shares of AbbVie have lost -15.3% in the past six months, underperforming the S&P 500's decline of -3%. The Zacks analyst thinks AbbVie’s key drug, Humira has been performing well in the United States based on strong demand trends despite new competition.
Moreover, Imbruvica has multibillion dollar potential. Mavyret saw a stronger-than-expected launch and has become a significant contributor to sales. AbbVie has also been successful in expanding approvals for its cancer drugs, Imbruvica and Venclexta.
The company has an impressive late-stage pipeline comprising several products with multibillion-dollar potential expected to be launched in the near term. However, AbbVie’s shares have underperformed the industry this year so far.
Sales erosion due to direct biosimilar competition to Humira in international markets will be a big headwind in 2019. Also, costs to support expected new product/line extension launches should hurt profits in 2019.
(You can read the full research report on AbbVie here >>>).
Buy-ranked United Technologies’ shares have gained +4.1% over the past three months, outperforming the S&P 500, which has increased +3.8% over the same period. The Zacks analyst thinks strength in commercial and military aftermarket businesses and impressive contribution from its acquired Rockwell Collins business sales will likely continue to boost United Technologies' near-term revenues.
Also, improved revenues and cost-cutting measures are expected to enhance profitability, going forward. Backed by these positives, the company has given bullish full-year 2019 revenue guidance.
The company intends to become more competent on the back of meaningful business acquisitions. Notably, the Rockwell Collins buyout is likely to boost sales in 2019. Moreover, separation of the company's existing business will create higher values and customer satisfaction.
(You can read the full research report on United Technologies here >>>).
Other noteworthy reports we are featuring today include Simon Property Group (SPG), Eni (E) and FirstEnergy (FE).
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
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
Intel (INTC) Rides on Product Rollouts Amid 10nm Delay
AbbVie's (ABBV) Pipeline Solid, Key Launches in Near Term
Strong Aerospace Business Boosts United Technologies (UTX)
Simon Property (SPG) to Gain From Portfolio Revamp Efforts
Per the Zacks analyst, Simon Property is expected to benefit from new development, redevelopment, expansion and acquisition efforts.
Eni (E) Banks on Zohr Gas Field, Refining Business Hurts
The Zacks analyst agrees that the Zohr field will continue to support Eni's natural gas production growth.
Dividends, Airfreight Revenues Buoy Expeditors (EXPD)
The Zacks analyst is impressed by the company's efforts to reward shareholders. Robust airfreight revenues and volume growth are further positives.
Jabobs (JEC) Rides on Solid Backlog & Project Execution
Per the Zacks analyst, improved segmental performances, solid backlog, efficient project execution and efforts made to focus on high-value business will likely improve Jacobs' near-term results.
Strengthening End Markets Aids Flowserve (FLS), Costs Drags
Per a Zacks analyst, Flowserve (FLs) stands to gains from healthy growth prospects in the oil & gas, chemical, power and general industries.
Office Assets in Best Business Districts Aid Highwoods (HIW)
Per the Zacks analyst, Highwoods Properties' assets in the best business districts (BBDs) will likely enjoy steady demand.
Nexeo Buyout, Productivity Actions to Aid Univar (UNVR)
While Univar faces headwind from weak industrial end-market demand, it should gain from synergies of the Nexeo acquisition and cost savings through productivity actions, per the Zacks analyst.
Energizing the Future Plan to Aid FirstEnergy's (FE) Growth
Per the Zacks analyst, modernization drive and ambitious Energizing the Future plan will add to FirstEnergy's overall operational strength.
PVH Corp (PVH) is Likely to Gain From Robust Brand Strength
Per the Zacks analyst, PVH Corp's sturdy brand portfolio and marketing strategies place the company well for growth. The company is witnessing solid momentum for its Tommy Hilfiger brand.
Strong Eye Care unit and Salix Business Boost Bausch (BHC)
Per the Zacks analyst, solid growth of Bausch + Lomb / International segment and Salix business boost Bausch. Bausch's efforts to sell non-core assets and pay down huge levels of debt are commendable.
Rising Costs & Limited Hospital Spending Hurt Omnicell (OMCL)
The Zacks analyst is worried about Omnicell's rising costs from integration of new buyouts and XT series launch. Also, limited hospital capital spending might affect the uptake of Omnicell's solutions
Mounting Expenses & Competitive Pressure Hurt Wayfair (W)
Per the Zacks analyst, Wayfair's rising advertisement and investment spending continues to hurt its margin expansion. Also, growing competition from a dominant player like Amazon remains a headwind.
Genpact (G) Grapples With Client Concentration, Seasonality
The Zacks analyst is worried about the client concentration Genpact faces in terms of geographic location. Seasonality causes fluctuation in revenues.
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United Technologies Corporation (UTX) : Free Stock Analysis Report
Simon Property Group, Inc. (SPG) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
FirstEnergy Corporation (FE) : Free Stock Analysis Report
Eni SpA (E) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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