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Top Stock Reports for Bank of America, Eli Lilly & Boston Scientific

Mark Vickery
Disappointing investment banking performance is expected to hurt BofA's (BAC) Q2 earnings.

Wednesday, July 10, 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 Bank of America (BAC), Eli Lilly (LLY) and Boston Scientific (BSX). 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 >>>

Bank of America’s shares have outperformed the Zacks Major Regional Banks in the past six months, gaining +12.5% vs. +10.8%. The company's earnings have surpassed expectations in each of the trailing four quarters.

The Zacks analyst thinks efforts to expand into new markets and digital offerings will likely enhance cross selling opportunities. Also, rise in loan balances, higher interest rates and efforts to control expenses will likely support profits. Further, the bank's enhanced capital deployment actions (approved by the Federal Reserve) reflect its strong balance sheet position.

However, dismal performance of capital markets amid a tough operational backdrop has been hurting the bank’s investment banking and trading operations, which in turn will hurt revenue growth. Litigation issues related to business misconduct in the pre-crisis period are likely to lead to higher legal costs.

(You can read the full research report on Bank of America here >>>).

Shares of Eli Lilly have lost 2.3% year to date, underperforming the Zacks Large Cap Pharmaceuticals industry, which has gained +2.3% over the same period. The Zacks analyst thinks that in 2019 Lilly’s revenue growth will be driven by higher demand for its newer drugs like Trulicity, Jardiance, Taltz, Verzenio and Emgality as some older drugs like Cialis face generic competition.

Lilly has made significant pipeline progress in the past year with several positive late-stage data readouts, multiple approvals and regulatory submissions. Lilly also added promising new pipeline assets through business development deals.

However, generic competition for several drugs including Cialis, rising pricing and competitive pressure, currency headwinds and the impact of the failed Lartruvo study are expected to hurt the top line. Estimates have gone down slightly ahead of Q2 results. Lilly has a positive record of earnings surprises in the recent quarter

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

Boston Scientific’s shares have outperformed the Zacks Medical Products industry over the past year, gaining +29.4% vs. +7.7%. The Zacks analyst stresses that Boston Scientific is consistently registering promising growth across all business lines and geographies.

The company recently received regulatory approval for the LOTUS Edge Aortic Valve System in the United States and is commencing controlled launch of the same in Europe. This apart, the company received a nod for the WATCHMAN Left Atrial Appendage Closure (LAAC) Device in Japan, obtained the CE Mark and initiated a limited market release for the next-generation WATCHMAN FLX LAAC Device in Europe.

On the flip side, Boston Scientific is suffering from significant cost escalation and declining worldwide pacemaker sales which are also hurting the CRM business.

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

Other noteworthy reports we are featuring today include ServiceNow (NOW), Schwab (SCHW) and Advanced Micro Devices (AMD).

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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

Branch Expansion, Loans Aid BofA (BAC) Amid Trading Slump


New Drugs to Drive Lilly's (LLY) Sales Amid Generic Pressure


New Buyouts to Aid Boston Scientific (BSX), Pacer Sales Hurt


Featured Reports

Growing Customer Base & Partnerships Aid ServiceNow (NOW)

Per the Zacks analyst, ServiceNow benefits from expanding Global 2000 (G2K) customer base which is undergoing digital transformation. Strategic alliances with the likes of Microsoft are a tailwind.

AMD Rides on Vega-Based GPU Product Rollouts & Partnerships

Per the Zacks analyst, Advanced Micro's release of Radeon RX Vega family of GPUs and alliance with companies like Baidu, Amazon, Tencent, Microsoft and JD.com will drive the top and bottom line

Southwest (LUV) Rides on Unit Revenue Growth, Cost Woes Linger

The Zacks analyst likes Southwest's performance with respect to unit revenues.

Product Rollouts Aid Western Digital (WDC) Amid Rising Debt

Per the Zacks analyst, incremental adoption of new product additions will aid Western Digital in expanding presence in the global SSD market.

Customer Additions, Organic Growth Aid Aqua America (WTR)

Per the Zacks analyst Aqua America is gaining from customer growth while steady investments is driving organic growth, which is helping the company to turn in a solid performance.

Enbridge (ENB) Banks on C$16B Midstream Growth Projects

The Zacks analyst believes that Enbridge will earn stable fee-based revenues from its huge backlog of midstream growth projects.

Expansion Actions Aid Cabot (CBT) Amid Pricing Woes

While Cabot faces a challenging pricing environment in China, it should benefit from efforts to expand its specialty compounds business globally, per the Zacks analyst.

New Upgrades

Transformation Plan to Boost Newell's (NWL) Shareholder Value

Per the Zacks analyst, execution of Newell's Accelerated Transformation Plan via market share gains, innovation, e-commerce growth and cost-saving plans will boost operations and shareholder value.

Appalachian Assets, Investments Aid National Fuel Gas (NFG)

Per the Zacks analyst National Fuel Gas' strong presence in the Appalachian region and $1.5B investment over next five years to strengthen upstream and midstream operation will drive operations.

Oceaneering (OII) Buoyed by Higher Subsea Products Backlog

The Zacks analyst likes the improving backlog for Oceaneering's Subsea Products unit and expects the segment to gain from new orders for umbilical and related hardwares.

New Downgrades

Higher Expenses, Lower Client Activity Hurt Schwab (SCHW)

The Zacks analyst believes that continuous rise in compensation and regulatory spending will keep overall costs high for Schwab. Further, lower client activity will hurt trading income.

Sprint (S) Plagued by Margin Woes, Soft Wireline Business

Per the Zacks analyst, promotional offers to lure customers from rival carriers are resulting in high cash burn rate for Sprint.

High Costs & Competition Hurt Madison Square Garden (MSG)

The Zacks analyst thinks that Madison Square's sports business segment faces increased competition from Yankees, Mets, Giants and more which hurt ticket prices amid a high cost operational environment


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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
 
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
 
Eli Lilly and Company (LLY) : Free Stock Analysis Report
 
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
 
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