The Zacks Analyst Blog Highlights: Union Pacific, AbbVie and General Dynamics

For Immediate Release

Chicago, IL – February 1, 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:Union Pacific UNP, AbbVie ABBV and General Dynamics GD.

Here are highlights from Thursday’s Analyst Blog:

Top Research Reports for Union Pacific, AbbVie and General Dynamics

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 Union Pacific, AbbVie and General Dynamics. 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 >>>

Buy-rankedUnion Pacific’s shares have outperformed the Zacks Rail industry (+20.4% vs. +12%) in the past year. Union Pacific reported better-than-expected earnings per share and revenues in the fourth quarter of 2018. Both the metrics also increased year over year. Higher freight revenues on the back of volume growth aided top-line growth.

For 2019, the company anticipates volumes to increase in the low single-digit range. The Zacks analyst thinks Union Pacific’s efforts to reward its shareholders are encouraging. Notably, the company has hiked dividends thrice since November 2017.

Improvement in operating ratio and low tax rates are added positives. Its efforts to promote safety are noteworthy as well. However, high debt levels and operating expenses are concerns. Escalated capital expenditures are contributing to rise in costs.

Shares of AbbVie have lost -29.6% in the past year, underperforming the Zacks Large-Cap Pharmaceuticals industry's decline of -1.2%. AbbVie missed estimates for earnings and sales in the fourth quarter. The Zacks analyst thinks AbbVie’s key drug, Humira has been performing well in the United States based on strong demand trends despite new competition.

Moreover, Imbruvica has multibillion dollar potential. Mavyret saw a stronger-than-expected launch and has become a significant contributor to sales. AbbVie has also been successful in expanding approvals for its cancer drugs, Imbruvica and Venclexta.

AbbVie has an impressive late-stage pipeline comprising several products with multibillion-dollar potential expected to be launched in the near term. Sales erosion due to direct biosimilar competition to Humira in international markets will be a big headwind in 2019. Also costs to support expected new product/line extension launches are likely to hurt profits in 2019.

General Dynamics’ shares have lost -23.2% in the past year, underperforming the Zacks Aerospace & Defense industry's decrease of -6.3%. General Dynamics ended fourth-quarter 2018 with both earnings and revenues surpassing expectations.

The Zacks analyst thinks the company enjoys solid demand for its varied defense products leading to organic growth, whereas a notable acquisition strategy adds to inorganic growth. The company is on track to achieve FAA type certification for its G600 aircraft later this year, which is expected to enter service in 2019.

These new jets are likely to be significantly accretive in terms of revenues as well as earnings for the company, once they become available to global customers. Moreover, a comparative analysis of the company’s historical EV/EBITDA ratio reflects a relatively gloomy picture that might be a cause for investors’ concern.

Other noteworthy reports we are featuring today include Total System Services (TSS) and C.H. Robinson (CHRW).

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>  

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
 
Union Pacific Corporation (UNP) : Free Stock Analysis Report
 
General Dynamics Corporation (GD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.