Top Analyst Reports For Allergan, Ecolab & Exelon
Zacks Investment Research | Aug 22, 2017 05:15AM ET
Tuesday, August 22, 2017
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 Allergan (NYSE:AGN) (AGN), Ecolab (ECL) and Exelon (EXC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Allergan’s shares have gained +7.1% year to date, outperforming the Zacks Generic Drugs industry, which has declined -19.3% over the same period. Allergan beat estimates for both earnings and sales in the second quarter. Meanwhile, the company raised its 2017 sales and earnings outlook.
The Zacks analyst likes key products like Botox and Linzess as well as new products such as Viberzi and Vraylar which are supporting sales growth. Allergan boasts dominant growth franchises in several areas and is strengthening its product portfolio through strategic acquisitions.
With the closing of the Teva deal, Allergan can now focus on the branded segment. It also boasts a strong branded pipeline with meaningful data read-outs expected in the near term. However, Allergan is facing generic competition for legacy brands like Namenda XR and Asacol HD, which concerns us. Also, competition for key growth drivers like Restasis is a concern.
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Shares of Ecolab have gained +11.9% year-to-date, outperforming the Zacks Specialty Chemicals industry which has increased +8.5% over the same period. Ecolab’s second-quarter earnings and revenues surpassed expectations. The Zacks analyst likes Ecolab’s robust product portfolio and expanding customer base, which will likely drive Ecolab organic sales over the long haul. In fact, the realization of targeted synergies associated with acquisitions should also pave way for margin expansion.
The company expects its water, food and beverage, and paper businesses to benefit in the near term. On the flipside, Ecolab operates in highly competitive markets, which might dent its prospects over the long haul. Volatility in foreign currency exchange rates will remain a significant headwind for the company. Ecolab also faces pricing pressure in the Energy segment which is likely to hurt profits.
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Exelon shares have gained +14% over the last one year, outperforming the Zacks Electric Power Industry which has gained +8.9% over the same period. The company’s second-quarter earnings and total revenue exceeded expectations due to higher utility earnings attributable to regulatory rate increases.
The Zacks analyst thinks Exelon is well positioned to gain from rate revisions and strong operational performance across its business. Further, the company is benefiting from the Pepco Holdings acquisition. However, Exelon is subject to the impact of commodity price volatility, price fluctuation in the wholesale markets and unfavorable weather conditions. Stringent government regulation is also a cause for concern.
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Other noteworthy reports we are featuring today include GlaxoSmithKline (GSK), Valero (VLO) and Rockwell Collins (NYSE:COL) (COL).
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Today's Must Read/h6
Featured Reports/h6
Per the Zacks analyst, shipbuilding business' outlook remains strong for Huntington Ingalls given the fiscal 2017 budget proposed by Trump.
The Zacks analyst believes that improving throughput volume on higher refinery utilization will help Valero generate more cash flow.
Per the Zacks analyst, Rockwell Collins has an unwavering focus on R&D, which enables it to clinch lucrative deals.
The Zacks analyst likes the improving coal volumes, which is boosting the company's top line. Efforts to reward shareholders also impress.
The Zacks analyst expects Glaxo's new products to continue performing well. However, pricing dynamics and competitive pressure are hurting sales of its top-selling respiratory drug Advair.
The Zacks analyst thinks Barrick should gain from its efforts to control mining costs and de-lever its balance sheet as well as progress of its key projects amid a volatile gold pricing environment.
Per the Zacks analyst, solid contribution from the equity capital markets, robust advisory activities and a favorable sales and pro-growth trading environment are likely to aid Leucadia.
Per the Zacks analyst, shipbuilding business' outlook remains strong for Huntington Ingalls given the fiscal 2017 budget proposed by Trump.
The Zacks analyst believes that improving throughput volume on higher refinery utilization will help Valero generate more cash flow.
Per the Zacks analyst, Rockwell Collins has an unwavering focus on R&D, which enables it to clinch lucrative deals.
The Zacks analyst likes the improving coal volumes, which is boosting the company's top line. Efforts to reward shareholders also impress.
The Zacks analyst expects Glaxo's new products to continue performing well. However, pricing dynamics and competitive pressure are hurting sales of its top-selling respiratory drug Advair.
The Zacks analyst thinks Barrick should gain from its efforts to control mining costs and de-lever its balance sheet as well as progress of its key projects amid a volatile gold pricing environment.
Per the Zacks analyst, solid contribution from the equity capital markets, robust advisory activities and a favorable sales and pro-growth trading environment are likely to aid Leucadia.
New Upgrades/h6
Given the increased penetration in existing markets and growing opportunities in new ones, the Zacks analyst believes that Microsemi's SoC FPGA business will prove to be a long-term revenue driver.
Per the Zacks analyst, demand for Boeing's commercial jets is on the rise due to a steady improvement in passenger and freight traffic. Single-aisle jets are expected to be the major growth driver.
Despite ongoing macro challenges outside the U.S., Pepsi has been doing well on the back of major innovation, ongoing revenue management strategies, improved productivity and better market execution.
Given the increased penetration in existing markets and growing opportunities in new ones, the Zacks analyst believes that Microsemi's SoC FPGA business will prove to be a long-term revenue driver.
Per the Zacks analyst, demand for Boeing's commercial jets is on the rise due to a steady improvement in passenger and freight traffic. Single-aisle jets are expected to be the major growth driver.
Despite ongoing macro challenges outside the U.S., Pepsi has been doing well on the back of major innovation, ongoing revenue management strategies, improved productivity and better market execution.
New Downgrades/h6
Per the Zacks analyst, rising costs on ongoing investments in technology driving compensation and equipment & software expenses remain a headwind. Moreover, high non-performing assets are a concern.
The Zacks analyst is concerned with Life Point's expenses that have increased at a rate higher than the revenue growth rate. Its high debt levels and soft patient volumes continue to bother.
Per the Zacks analyst, softness in food retail and competition from traditional grocery stores will continue to hurt United Natural's sales and overall profitability
Per the Zacks analyst, rising costs on ongoing investments in technology driving compensation and equipment & software expenses remain a headwind. Moreover, high non-performing assets are a concern.
The Zacks analyst is concerned with Life Point's expenses that have increased at a rate higher than the revenue growth rate. Its high debt levels and soft patient volumes continue to bother.
Per the Zacks analyst, softness in food retail and competition from traditional grocery stores will continue to hurt United Natural's sales and overall profitability
Zacks Investment Research
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