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The Zacks Analyst Blog Highlights: Boston Scientific, Southern, BNY, Schlumberger and Southwest

Zacks Equity Research

For Immediate Release

Chicago, IL –January 14, 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: Boston Scientific BSX, Southern Company SO, BNY Mellon BK, Schlumberger SLB and Southwest Airlines LUV.

Here are highlights from Friday’s Analyst Blog:

Top Analyst Reports for Boston Scientific, Southern Co. and BNY-Mellon

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 Boston Scientific, Southern Company and BNY Mellon. 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 >>>

Boston Scientific’s shares have outperformed the Zacks Medical Products industry over the past three months, losing -2.8% vs. -8.5%. The Zacks analyst thinks the company is suffering from significant cost escalation, which is weighing on its margins.

Also, a delay in LOTUS relaunch is hampering sales through 2018. Declining worldwide pacemaker sales is also hurting the CRM business. On a brighter note, the company is seeing growth across all business lines and geographies. Boston Scientific received a number of FDA approvals within the Cardiovascular group.

This apart, it launched LithoVue within Urology and rolled out the GUIDE XT in Europe. Three recent acquisitions- Claret Medical, VENITI and Augmenix, provide cause for optimism. These are expected to strongly contribute to the company’s inorganic growth profile. Boston Scientific’s significant progress related to its LOTUS valve relaunch is also encouraging. Also, post the suspension of LOTUS valve in Europe, ACURATE TAVR continues to build momentum.

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

Shares of Southern Company have underperformed the Zacks Electric Power industry over the past six months, losing -3.4% vs +2.7%. The Zacks analyst emphasizes that the company is one of the largest electric utility holding companies in the United States and has managed to surpass estimates in each of the last seven quarters.

The company’s $12-billion AGL Resources buyout has significantly increased its customer base and diversified offerings. With good rate base growth and constructive regulation, it is expected to generate steady earnings and dividend growth in the coming years through long-term power contracts.

However, elevated leverage of the firm, along with continued timing and cost overrun issues over two of its major projects — Vogtle and Kemper — are major overhangs. While the company’s $25-billion Vogtle nuclear plant has already exceeded its budget and is years behind schedule, its Kemper project also suffered a setback with the suspension of all coal gasification operations amid additional cost burden. This is why Southern Company warrants a cautious stance from the investors.

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

BNY Mellon’s shares have outperformed the Zacks Major Regional Banks industry in the past year (-18.8% vs. -19.1%). The company’s earnings surpassed expectations in only two of the trailing four quarters. Further, the earnings estimates have been going downward ahead of the company’s fourth quarter results.

The Zacks analyst thinks elevated operating expenses will likely continue to hamper bottom line growth to some extent. Also, the concentration risk, arising from significant dependence on fee-based income, remains a matter of concern.

However, higher interest rates, increase in fee income and improving assets balance will support profitability. Further, enhanced capital deployment plan reflects strong balance sheet position.

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

Other noteworthy reports we are featuring today include Schlumberger and Southwest Airlines.

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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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