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The Zacks Analyst Blog Highlights: Bank of America, Celgene, Goldman Sachs, L Brands and Quest Diagnostics

Zacks Equity Research
In the latest trading session, UnitedHealth Group (UNH) closed at $262.19, marking a -1.17% move from the previous day.

For Immediate Release

Chicago, IL – December 11, 2017 – 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 Bank of America BAC, Celgene CELG, Goldman Sachs GS, L Brands LB and Quest Diagnostics DGX.

Here are highlights from Friday’s Analyst Blog:

Top Research Reports for Bank of America, Celgene and Goldman Sachs

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), Celgene (CELG) and Goldman Sachs (GS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

Bank of America’s shares have outperformed the Zacks Major Regional Banks industry over the last six months, gaining +21.6% vs. +14.3%. This price performance is backed by impressive earnings surprise history as the company surpassed expectations in each of the trailing four quarters. Rising interest rates, increase in loan and deposit balances along with initiatives to strengthen its balance sheet is expected to continue supporting profitability.

The bank’s efforts to streamline and simplify operations will support its overall growth and even improve its capital deployment activities. However, muted fee income growth remains a key concern. Fall in mortgage banking income due to lower volumes and a decline in refinancing activity along with uncertainty related to performance of capital markets make the Zacks analyst apprehensive. In fact, trading revenues are expected to decline in the fourth quarter 2017.

Shares of Celgene have underperformed the Zacks Biomedical and Genetics over the last three months, losing -27.1% vs. a decline of -12.6%. Celgene’s third-quarter results were mixed with the company beating on earnings but missing on sales estimates. While Revlimid sales were impressive yet again, Otezla sales in the United States were weak due to challenges in the dermatology market which led the management to cut guidance.

Celgene’s Revlimid continue to outperform driven by further market share increases in newly diagnosed myeloma and the continued increase in treatment duration. Pomalyst and Abraxane also performed well. The Zacks analyst likes Celgene’s label expansion efforts and pipeline development with sNDA submission for Revlimid in newly diagnosed multiple myeloma targeted for first-quarter 2018.

The approval of Idhifa for relapsed and/or refractory acute myeloid leukemia has further boosted the company’s portfolio. However, Celgene is highly dependent on Revlimid while Abraxane sales are under competitive pressure. Weakness in Otezla will persist.

Goldman Sachs’ shares have gained +11.7% over the six months, underperforming the +17.9% gain of the Zacks Investment Bank industry. Yet, the company boasts an impressive earnings surprise history. It has surpassed estimates for earnings in three of the trailing four quarters.

Though several issues, including sluggish global economic growth and lower client activity levels, remain near-to-medium-term headwinds, the Zacks analyst thinks the company’s well-diversified business and its focus to capitalize on growth opportunities through strategic moves should continue to bolster the overall business. Further, cost control measures are commendable. Additionally, steady capital deployment activities have boosted investors' confidence.

Other noteworthy reports we are featuring today include L Brands (LB) and Quest Diagnostics (DGX).

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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/performancefor information about the performance numbers displayed in this press release.


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Bank of America Corporation (BAC) : Free Stock Analysis Report
 
Goldman Sachs Group, Inc. (The) (GS) : Free Stock Analysis Report
 
Celgene Corporation (CELG) : Free Stock Analysis Report
 
Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report
 
L Brands, Inc. (LB) : Free Stock Analysis Report
 
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