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The Zacks Analyst Blog Highlights: Amgen, Broadcom, Starbucks, Citigroup and Carnival

Zacks Equity Research
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For Immediate Release

 

 

 

 

Chicago, IL – January 10, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Amgen AMGN, Broadcom AVGO, Starbucks SBUX, Citigroup C and Carnival CCL.

Here are highlights from Wednesday’s Analyst Blog:

Top Stock Reports for Amgen, Broadcom & Starbucks

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 Amgen, Broadcom and Starbucks. 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 >>>

Amgen’s shares have gained +9.7% in the past year versus the Zacks Biomedical and Genetics industry's decline of -20.7%. Amgen’s newer drugs – Prolia, Xgeva, Blincyto, Kyprolis – are performing well. Amgen is also progressing with its pipeline and the approval of migraine candidate Aimovig was a huge boost.

The Zacks analyst thinks its strong biosimilars pipeline could be an important long-term growth driver. Amgen’s restructuring plan is making more cost efficient. Lower taxes and share buybacks should provide some bottom-line support. However, Amgen faces challenges related to its more mature products such as launch of competing biosimilar versions of Neulasta and Epogen, further sales erosion of Neupogen and Aranesp and increasing competitive pressures on Enbrel.

Meanwhile, uptake of key new drug, Repatha has been slow due to payer restrictions. Nonetheless, estimates have gone up ahead of the Q4 earnings release. Amgen has a positive record of earnings surprises in recent quarters.

Shares of Broadcom have underperformed the Zacks Electronics - Semiconductors industry over the past year, losing -10.2% vs. a -9.7% decline. Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices.

The Zacks analyst thinks the company is benefiting from strong demand of its wireless solutions and expanding product portfolio, which makes it well-positioned to address the needs of rapidly growing technologies like IoT and 5G. Strong ties with leading OEMs across multiple target markets will help the company to gain key insights into the requirements of customers.

Further, Broadcom is a leading player in the semiconductor market based on its multiple target markets, accretive acquisitions and strong cash flow. Nonetheless, the company faces intensifying competition and integration risks due to frequent acquisitions. The company’s leveraged balance sheet and customer concentration continue to be headwinds.

Starbucks’s shares are up +13.6% over the past three months, outperforming the Zacks Food & Restaurants industry, which is up +5.4% over the same period. The Zacks analyst thinks robust Americas and U.S. comparable store sales bode well for the company.

Starbucks’ largest market the United States, reported comps growth of 4%, which marks the strongest gain in the past five quarters. Also, the company’s operating fundamentals such as solid global footprint, successful innovations, best-in-class loyalty program and digital offerings are encouraging. Again, digital initiatives like mobile order/pay, delivery services and third-party loyalty partnerships can further stimulate robust sales trends in the Americas.

Additionally, Starbucks has teamed up with Nestle SA to revitalize their respective coffee domains. However, operating margin contraction over the past few quarters has been a major concern. Being a retail restaurant, Starbucks is dependent on consumer discretionary spending environment.

Other noteworthy reports we are featuring today include Citigroup and Carnival.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Citigroup Inc. (C) : Free Stock Analysis Report
 
Broadcom Inc. (AVGO) : Free Stock Analysis Report
 
Carnival Corporation (CCL) : Free Stock Analysis Report
 
Amgen Inc. (AMGN) : Free Stock Analysis Report
 
Starbucks Corporation (SBUX) : Free Stock Analysis Report
 
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