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The Zacks Analyst Blog Highlights: Celgene, Schlumberger, Becton, Dickinson, Twitter and PPG Industries

Zacks Equity Research
WellCare Health's (WCG) first-quarter earnings are likely to gain from a rise in membership, partly offset by high debt load.

For Immediate Release

Chicago, IL – April 25, 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: Celgene CELG, Schlumberger SLB, Becton, Dickinson BDX, Twitter TWTR and PPG Industries PPG.

Here are highlights from Wednesday’s Analyst Blog:

Top Analyst Reports for Celgene, Schlumberger and Becton, Dickinson

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 Celgene, Schlumberger and Becton, Dickinson. 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 >>>

Celgene’s shares have gained +25.4% in the past six months, outperforming the Zacks Biomedical and Genetics industry's decline of -2.6%. The Zacks analyst thinks Celgene’s key growth driver, Revlimid, continues to drive revenues. Robust performance of psoriasis drug, Otezla, is also boosting performance.

Investors are focusing on the company’s merger agreement with Bristol-Myers Squibb Company. Per the terms, Celgene shareholders will receive 1.0 share of Bristol-Myers and $50.00 in cash for each share held. Meanwhile, Celgene is also working on the label expansion of drugs like Pomalyst/Imnovid, Abraxane and Otezla, among others.

The company is focused on the next cycle of innovation with five late-stage candidates — ozanimod, fedratinib, luspatercept, liso-cel and bb2121 — all of which are expected to be launched by the end of 2020. However, the company’s dependence on Revlimid for growth is a concern. Also, pipeline setbacks are a deterrent.

Shares of Schlumberger have underperformed the Zacks Oil and Gas - Field Services industry over the past year, losing -33.6% vs. -19.4%. The Zacks analyst stresses that Schlumberger is the largest oilfield services player in the world with presence in every energy market.

The company expects improvement in oilfield services in international markets where the count of drilling rigs and final investment decisions (FID) for clients’ projects are on the rise. Schlumberger’s first-quarter 2019 earnings matched expectations, courtesy of contributions from Integrated Drilling Services (IDS) projects in Saudi Arabia, India and Mexico.

However, the bottom line declined year over year owing to lower contributions from directional drilling in the land market of North America. Decline in OneStim revenues from the continent’s onshore regions added to concerns. Moreover, conservative spending by North America’s explorers and producers is likely to hurt demand for Schlumberger’s oilfield services.

Becton, Dickinson’s shares have underperformed the Zacks Dental Supplies industry year to date, gaining +1.2% vs. +8.2%. The Zacks analyst likes the solid performance by the core BD Medical and Life Sciences units. Domestic and international revenues increased year over year in recent times.

Management is optimistic about the C.R. Bard buyout which has consistently proven to be accretive. Notably, a series of product launches and regulatory approvals in recent times continue to boost the stock. The company has kept its fiscal 2019 guidance intact. However, contraction in gross and operating margins in recent times is worrisome for Becton, Dickinson.

Customer ordering patterns are also expected to negatively impact fiscal second-quarter results. Management expects unfavorable foreign currency to remain headwinds in fiscal 2019. Stiff price competition in the MedTech space adds to the woes.

Other noteworthy reports we are featuring today include Twitter and PPG Industries.

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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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Twitter, Inc. (TWTR) : Free Stock Analysis Report
 
PPG Industries, Inc. (PPG) : Free Stock Analysis Report
 
Celgene Corporation (CELG) : Free Stock Analysis Report
 
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
 
Schlumberger Limited (SLB) : Free Stock Analysis Report
 
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