The Zacks Analyst Blog Highlights: General Dynamics, Merck, Progressive, ServiceNow, and Emerson
For Immediate Release
Chicago, IL – October 8, 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: General Dynamics GD, Merck & Co. MRK, Progressive PGR, ServiceNow NOW and Emerson EMR.
Here are highlights from Monday’s Analyst Blog:
Top Analyst Reports for General Dynamics, Merck and Progressive
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 General Dynamics, Merck & Co. and Progressive. 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 >>>
General Dynamics’ shares have underperformed the Zacks Aerospace & Defense industry year to date (11.2% vs. 26.2%). The Zacks analyst believes that the company continues to witness strong order growth, securing some pivotal contracts from the U.S. government and its overseas clients. Deliveries of G600 can be expected from the third quarter.
Product innovations can be expected to enhance this shipbuilder’s footprint in the business jet market. However, rising interest expenses can be a potential headwind for the company’s bottom-line growth going ahead.
Moreover, delayed payments related to one of its large international vehicle programs in Canada are hurting its cash flow reserve. A comparative analysis of its historical EV/EBITDA ratio reflects a gloomy picture.
Shares of Merck have gained 2% in the past six months, outperforming the Zacks Large Cap Pharmaceuticals industry’s fall of 5.3% over the same period. The Zacks analyst believes that Merck’s new products like Keytruda, Lynparza and Bridion are contributing meaningfully to the top line.
Keytruda sales are gaining momentum with approval for additional indications, especially in the first-line lung cancer setting. Keytruda has strong growth prospects based on increased utilization, recent approvals for new indications and potential additional approvals worldwide. Animal health and vaccine products are also performing strongly and remain core growth drivers for Merck.
However, generic competition for several drugs and pricing pressure will continue to be overhangs on the top line. Rising competitive pressure on the diabetes franchise and products like Isentress (HIV), Zepatier (HCV) and Zostavax (vaccine) remains a concern.
Progressive’s shares have gained 6.7% over the past year compared with the Zacks Insurance - Property and Casualty industry’s decline of 4.7%. The Zacks analyst believes that Progressive’s focus on becoming a one-stop insurance destination, catering to customers opting for a combination of home and auto insurance, bodes well for growth.
Leadership in product, service and distribution innovation, especially in personal auto bodes well for long-term growth. Policies in force and retention ratio will continue to remain healthy. The company’s Snapshot, Robinson and Home Quote Explorer programs should continue to drive its business.
The company also pays back its shareholders via dividends and share repurchases. However, the company’s growth could be challenged by intense competition. Exposure to catastrophe events induces volatility to its underwriting results while escalating expenses weigh on margins are concerns.
Other noteworthy reports we are featuring today include ServiceNow and Emerson.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
General Dynamics Corporation (GD) : Free Stock Analysis Report
The Progressive Corporation (PGR) : Free Stock Analysis Report
Emerson Electric Co. (EMR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
