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The Zacks Analyst Blog Highlights: Disney, Coca-Cola, Gilead, CME and Entergy

Zacks Equity Research
Coca-Cola Company (KO) stock was down 0.53% in trading Thursday. The stock currently sits less than a percent below its 52-week high.

For Immediate Release

Chicago, IL – May 22, 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: Disney DIS, Coca-Cola KO, Gilead GILD, CME Group CME and Entergy ETR.

Here are highlights from Tuesday’s Analyst Blog:

Top Stock Reports for Disney, Coca-Cola and Gilead

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 Disney, Coca-Cola and Gilead. 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 >>>

Disney’s shares have gained +28.7% over the past year, outperforming the Zacks Media Conglomerates industry’s gain of +23% during the same period. The Zacks analyst thinks Disney’s second-quarter fiscal 2019 top-line growth was driven by strong performance of DTCI and Parks, Experiences & Consumer Products segments. Higher guest spending and attendance and increase in consumer products business aided Parks segment revenues.

Additionally, Disney’s most-awaited movie, Avengers: Endgame, which recorded phenomenal box-office success, is expected to aid fiscal 2019 top line. However, second-quarter fiscal 2019 operating income decreased due to lower theatrical and home entertainment results and higher costs.

Increasing investments in ESPN and Disney+ and losses from streaming technology services hurt DTCI segment operating income. Moreover, due to the ongoing investments, Disney anticipates DTCI operating loss to be higher in third-quarter fiscal 2019.

Shares of Coca-Cola have increased +15.6% in the past year, outperforming the Zacks Soft Drinks Beverages industry which has gained +7.2% over the same period. The Zacks analyst thinks this is largely attributable to the effective execution of strategies to evolve as a consumer-centric total beverage company. This bolstered the company’s quarterly performances as evident from a robust surprise trend.

First-quarter 2019 marked its seventh positive earnings surprise in the last eight quarters and seventh straight sales beat. Top and bottom lines benefited from ongoing productivity efforts and disciplined growth strategies along with robust performance across all segments.

Further, innovation and investment in core categories and brands have been the key focus area for Coca-Cola, which has led to the expansion of retail value share. Its transformative global re-franchising initiatives are expected to boost margins. However, the company expects adverse currency rates to significantly hurt comparable revenues and operating income in the second quarter and 2019.

Buy-ranked Gilead’s shares have outperformed the Zacks Biotech industry year to date, gaining +5.3% vs. an increase of +0.3%. Although the sales miss was disappointing, Gilead’s earnings beat the consensus mark in the first quarter. Soft HCV franchise sales stabilized as compared to the levels in prior quarters.

The Zacks analyst thinks Gilead’s HIV franchise maintains momentum on continued uptake of Genvoya and Odefsey, and the rapid adoption of Biktarvy. Meanwhile, it shifted focus to the HIV franchise, and newer avenues like CAR-T therapy and NASH. Gilead’s collaboration with Novo Nordisk for NASH treatments is a step in the right direction, given its recent debacles.

The company suffered a setback with the failure of a late-stage study on selonsertib in patients with compensated cirrhosis (F4) due to NASH. It is also developing a pipeline targeting inflammatory diseases. Data from phase III studies on filgotinib were also encouraging. A potential filing is planned by the end of this year.

Other noteworthy reports we are featuring today include CME Group and Entergy.

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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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Entergy Corporation (ETR) : Free Stock Analysis Report
 
The Walt Disney Company (DIS) : Free Stock Analysis Report
 
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
 
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
 
CME Group Inc. (CME) : Free Stock Analysis Report
 
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