New Stock Research Reports For Boeing, AbbVie And UnitedHealth
Zacks Investment Research | May 18, 2017 12:48AM ET
Thursday May 18, 2017
Today's Research Daily features new research reports on 16 major stocks, including Boeing (BA), AbbVie (ABBV) and UnitedHealth (UNH). 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 >>>
Boeingshares have surged +39.6% over the past one-year, outperforming the Zacks Aerospace & Defense sector, which gained +20.9% during the same time period. The Zacks analyst stresses that rising demand for its commercial airplanes on the back of steady improvement in passenger and freight traffic is the major factor behind the surge in Boeing shares. These developments reflect the company’s latest expansion on the international front, apart from its strong presence in the domestic aviation market. The improving outlook for defense spending under the Trump administration is another long-term positive in the Boeing story. However, challenges including uncertain fate of high-cost programs, risks related to key project executions, order cancellations as well as stiff competition might have a negative impact on the company. (You can >>>)
AbbVie shares have gained +10.2% over the last one year, outperforming the large cap pharma industry, which has gained +4.4% over the same period. The stock as well as the industry has lagged the broader market, however, on continued macro uncertainty related to drug pricing. AbbVie reported better-than-expected results in the first quarter, surpassing expectations for both earnings and sales. The Zacks analyst likes its key drug Humira’s performance. Sales should continue to be driven by growing awareness, favorable clinical data, additional indications and expansion into new markets. Moreover, products like Viekira and Imbruvica have diversified AbbVie’s revenue base. AbbVie has a deep and promising pipeline and is also working on expanding its portfolio though additional deals. On the flip side, the Zacks analyst points out that Viekira faces intense pricing pressure and competition in the HCV market. Additionally, quite a few companies are working on bringing Humira biosimilars to the market. (You can >>>)
UnitedHealthshares have lagged the peer group lately, with the stock up +5.5% in the year-to-date period vs. the Zacks HMO industry’s +10.5% gain. A big reason for the stock’s recent underperformance are questions about the company’s Medicare Advantage policies in recent years following a whistleblower accusations. The company’s decision to reduce its exposure to the troubled public exchange business is a likely another issue. Though this move will shield it from losses in this business, the company’s premium revenues will be affected. These challenges notwithstanding, the Zacks analyst likes the company’s strong fundamentals and diversified operations which should help it counter these headwinds. The company raised its 2017 guidance on the back of its solid first-quarter earnings. UnitedHealth has also witnessed an upward revision in earnings estimates for 2017 over the last 30 days. (You can >>>)
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Other noteworthy reports we are featuring today include Travelers (TRV), Consolidated Edison (ED) and Cisco (CSCO).
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Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly >>>
Today's Must Read/h6
Featured Reports/h6
According to the Zacks analyst, disappointing fourth-quarter revenue guidance will weigh on the share price at least in the near term.
While appreciating Concho Resources' operational excellence, the covering analyst believes that the volatility in oil prices limits upside from current levels.
The Zacks analyst thinks Vornado's strategic acquisitions and divestitures including spin-offs are likely to be beneficial for it despite Q1 FFO miss.
The covering analyst thinks National Oilwell's better-than expected results were driven by improved oil prices, together with aggressive cost reduction and improved efficiencies.
The Zacks analyst thinks Magna will grow on operational efficiency and diverse product portfolio but currency and high warranty costs remain headwinds.
Travelers' first-quarter 2017 earnings missed expectations and deteriorated year over year, mainly due to lower underlying underwriting gain and higher catastrophe losses.
The covering analyst thinks given its strong fundamentals and solid operating performance, GGP is poised to grow despite the challenges faced by the real estate market from online purchases.
According to the Zacks analyst, disappointing fourth-quarter revenue guidance will weigh on the share price at least in the near term.
While appreciating Concho Resources' operational excellence, the covering analyst believes that the volatility in oil prices limits upside from current levels.
The Zacks analyst thinks Vornado's strategic acquisitions and divestitures including spin-offs are likely to be beneficial for it despite Q1 FFO miss.
The covering analyst thinks National Oilwell's better-than expected results were driven by improved oil prices, together with aggressive cost reduction and improved efficiencies.
The Zacks analyst thinks Magna will grow on operational efficiency and diverse product portfolio but currency and high warranty costs remain headwinds.
Travelers' first-quarter 2017 earnings missed expectations and deteriorated year over year, mainly due to lower underlying underwriting gain and higher catastrophe losses.
The covering analyst thinks given its strong fundamentals and solid operating performance, GGP is poised to grow despite the challenges faced by the real estate market from online purchases.
New Upgrades/h6
The Zacks analyst thinks the company's systematic investment plan has boosted its stable earnings growth, in Q1. Its steady progress in generating renewable assets is also impressive.
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The Zacks analyst thinks the company's systematic investment plan has boosted its stable earnings growth, in Q1. Its steady progress in generating renewable assets is also impressive.
The coveringanalyst is impressed with the company's Q1 results & raised guidance and thinks it will gain from healthy demand for potash, expanded capacity and synergies of planned merger with Agrium.
SABESP is well-positioned to benefit from rise in demand for better water and sewage services in Brazil. Its first-quarter 2017 earnings per ADR grew 33.3% year over year while sales went up 17.5%.
New Downgrades/h6
Alliant lagged Q1 earnings estimates due to impact of mild weather. However, the Zacks analyst believes the company is poised to gain from economic development and higher return from regulated assets.
Itron will gain from restructuring, product development, strength in backlog as well as new projects. However, currency rate fluctuation, high expenses and stiff competition will impact results.
Pilgrim's Pride will grow on robust sales, GNP buyout and new capital investments. However, headwinds like livestock diseases, industry rivalry or input price inflation might limit near-term growth.
Alliant lagged Q1 earnings estimates due to impact of mild weather. However, the Zacks analyst believes the company is poised to gain from economic development and higher return from regulated assets.
Itron will gain from restructuring, product development, strength in backlog as well as new projects. However, currency rate fluctuation, high expenses and stiff competition will impact results.
Pilgrim's Pride will grow on robust sales, GNP buyout and new capital investments. However, headwinds like livestock diseases, industry rivalry or input price inflation might limit near-term growth.
Zacks Investment Research
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