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The Zacks Analyst Blog Highlights: Procter & Gamble, AbbVie, IBM, McDonald's and General Electric

Zacks Equity Research
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For Immediate Release

Chicago, IL – June 25, 2018 – 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 Procter & Gamble PG, AbbVie ABBV, IBM IBM, McDonald's MCD and General Electric GE.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday’s Analyst Blog:

Top Research Reports for Procter & Gamble, AbbVie and IBM

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 Procter & Gamble, AbbVie and IBM. 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 >>>

Procter & Gamble's shares have underperformed the Zacks Soap and Cleaning Materials industry year to date (-16.8% vs. -11.5%). The Zacks analyst thinks Procter & Gamble has been benefiting from higher demand for skincare products, along with fabric and home care products.

Further, the company boasts an impressive earnings surprise history, which continued in third-quarter fiscal 2018. Also, results improved year over year. While bottom-line results were aided by productivity cost savings, top line was driven by organic sales growth and higher volumes.

Management remains focused on product improvement, packaging and marketing initiatives, and productivity cost-savings plan. The company is witnessing strained margins owing to increased commodity costs, adverse geographic and product mix as well as unfavorable pricing impacts and product reinvestments. Also, slower global market growth along with softness across Baby, Feminine and Family Care segment remains concerns.

(You can read the full research report on Procter & Gamble here >>>).

Shares of AbbVie have lost -1.2% year to date, outperforming the Zacks Large Cap Pharmaceuticals industry, which has declined -5.1% over the same period. AbbVie’s key drug, Humira is performing well based on strong demand trends despite new competition.

Moreover, Imbruvica has multibillion-dollar potential and AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases. Mavyret’s launch has been stronger than expected. Mavyret has become a major growth driver for AbbVie in a short time on the market.

AbbVie has an impressive late-stage pipeline with label expansions for both new and existing products expected over the next few years. Several pivotal data readouts and regulatory milestones are expected in 2018.

Promising data from several pivotal studies and settlement of its second Humira patent dispute with Biogen are other tailwinds. However, Viekira’s sales continue to be hurt by intensifying competition. Also, potential long-term competition to Humira is a concern.

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

IBM’s shares have underperformed the broader market on a year-to-date basis, losing -8% vs. the S&P 500’s +3% gain. The Zacks analyst likes IBM’s improving position in the cloud, security and analytics. Moreover, accretive acquisitions have expanded IBM’s product portfolio into higher-growth segments, such as Cloud computing and Big Data.

Further, expanding footprint in the rapidly growing blockchain market is positive. The expanded partnership with Red Hat bodes well for the company in the long haul. Oniqua buyout will add asset optimization capabilities IoT based capabilities to aid IBM’s Maximo. IBM has positive record of earnings surprises in recent quarters.

However, the strategic imperatives will take some more time to report meaningful growth and offset weakness in the traditional business. IBM’s ongoing heavily time-consuming business model transition to cloud continues to hurt the stock. Additionally, intensifying competition is a major concern. Estimates have been stable lately ahead of the company’s Q2 earnings release.

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

Other noteworthy reports we are featuring today include McDonald's and General Electric.

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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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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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International Business Machines Corporation (IBM) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
General Electric Company (GE) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
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