Top Analyst Reports For Amazon, IBM & Biogen
Zacks Investment Research | Mar 11, 2020 02:27AM ET
Wednesday, March 11, 2020
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 Amazon.com, Inc. (NASDAQ:AMZN), IBM Corp. (IBM) and Biogen Inc. (NASDAQ:BIIB). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Amazon’s shares have outperformed the Zacks Internet - Commerce industry so far this year (+2.4% vs. -1.3%). Amazon reported impressive fourth-quarter results wherein both earnings and revenues topped the estimates and grew on a year-over-year basis.
The company benefited from solid Prime momentum owing to ultrafast delivery services and expanding original content portfolio. Moreover, it witnessed strong growth in the Prime paid membership. Further, strengthening AWS services and its growing adoption rate contributed well.
However, rising transportation cost related to its free one-day shipping service remains an overhang. Further, foreign exchange headwinds are concerns. Also, rising cloud competition from Microsoft (NASDAQ:MSFT) and Google (NASDAQ:GOOGL) poses risk.
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IBM’s shares have declined 9.8% over the past one-year period against the Zacks Computer - Integrated Systems industry’s fall of 11.2%. But things are looking up for IBM after it reported stellar Q4 results. Moreover, the company provided promising bottom-line guidance for 2020. IBM’s improving position in the hosted cloud, security and analytics aided revenue performance.
The RedHat acquisition has helped IBM to enhance containerized software capabilities. Robust adoption of security solutions, including Resilient and QRadar, bodes well.
Further, gains from z15 and high demand for data privacy and resiliency solutions across hybrid cloud are positives. Also, IBM’s time-consuming business model transition to cloud is a headwind.
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Biogen’s shares have outperformed the Zacks Medical - Biomedical and Genetics industry on a year-to-date basis (+3.0% vs. -5.7%). Biogen’s efforts to diversify beyond MS to other areas are commendable. Spinraza has multi-billion-dollar potential. Biogen regularly in-licenses assets to build its pipeline.
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Several important data readouts are expected in 2020-2021. Its intention to seek U.S. approval of Alzheimer’s treatment, aducanumab, a few months after it halted late-stage studies on the same drug following a futility analysis, gave a major boost to the stock.
However, competitive pressure is expected to rise in 2020 in MS market. And even though Biogen’s CNS pipeline is attractive, it is a high-risk area.
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Other noteworthy reports we are featuring today include Newmont Corp. (NEM), UBS Group AG (UBS) and Berkshire Hathaway Inc. (NYSE:BRKa) (BRK.B).
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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
Per the Zacks Analyst, OGE Energy's generation projects will likely boost its performance. However, environmental regulation increases the cost of planning, design and operation of its facilities.
The Zacks analyst likes TransUnion's acquisition strategy to expand its product portfolio and enter new markets.
Per the Zacks analyst, solid traction of Stanley Black & Decker (NYSE:SWK)'s Tools & Storage segment, led by strong demand across product lines bode well for its growth momentum. High costs remain a concern.
Per the Zacks analyst, UBS Group's cost saving measures to drive operational efficiency are encouraging. However, prevailing low rate environment in the European economy continue to hurt its revenues.
Per the Zacks analyst, the company is well poised to grow from its non-insurance business like manufacturing, service and retail on the back of better economic conditions and higher consumer demand.
Per the Zacks analyst, stellar performance at L Brands' Bath & Body Works segment will continue to drive sales growth.
Per the Zacks analyst, Noble will secure growth with the hike in dayrate and increased activities for the Noble Don Taylor rig.
Per the Zacks Analyst, OGE Energy's generation projects will likely boost its performance. However, environmental regulation increases the cost of planning, design and operation of its facilities.
The Zacks analyst likes TransUnion's acquisition strategy to expand its product portfolio and enter new markets.
Per the Zacks analyst, solid traction of Stanley Black & Decker (NYSE:SWK)'s Tools & Storage segment, led by strong demand across product lines bode well for its growth momentum. High costs remain a concern.
Per the Zacks analyst, UBS Group's cost saving measures to drive operational efficiency are encouraging. However, prevailing low rate environment in the European economy continue to hurt its revenues.
Per the Zacks analyst, the company is well poised to grow from its non-insurance business like manufacturing, service and retail on the back of better economic conditions and higher consumer demand.
Per the Zacks analyst, stellar performance at L Brands' Bath & Body Works segment will continue to drive sales growth.
Per the Zacks analyst, Noble will secure growth with the hike in dayrate and increased activities for the Noble Don Taylor rig.
New Upgrades/h6
Per the Zacks analyst, Newmont is likely to benefit from progress in its key growth projects, including the Tanami expansion. Also, the merger with Goldcorp will generate significant synergies.
Per the Zacks analyst, consistent progress at the Commercial Lines Insurance segment backed by solid premiums earned and several growth initiatives contributes to revenue growth of the company.
Per the Zacks analyst, Lennar is poised to benefit from prudent land investment strategies, strength in the housing market, dynamic pricing model and operating efficiency.
Per the Zacks analyst, Newmont is likely to benefit from progress in its key growth projects, including the Tanami expansion. Also, the merger with Goldcorp will generate significant synergies.
Per the Zacks analyst, consistent progress at the Commercial Lines Insurance segment backed by solid premiums earned and several growth initiatives contributes to revenue growth of the company.
Per the Zacks analyst, Lennar is poised to benefit from prudent land investment strategies, strength in the housing market, dynamic pricing model and operating efficiency.
New Downgrades/h6
Veeva Systems witnessed dented margins and surging operational costs lately. The Zacks Analyst is also apprehensive of the intense competition in the healthcare industry.
The Zacks analyst thinks that weak prices for major products including polyethylene and caustic soda as well as costs related to maintenance outages will weigh on the company's margins.
Per the Zacks analyst, lower contribution from Corrosion Protection and turnaround activity at Energy Services has been impacting Aegion's performance over the past few quarters.
Veeva Systems witnessed dented margins and surging operational costs lately. The Zacks Analyst is also apprehensive of the intense competition in the healthcare industry.
The Zacks analyst thinks that weak prices for major products including polyethylene and caustic soda as well as costs related to maintenance outages will weigh on the company's margins.
Per the Zacks analyst, lower contribution from Corrosion Protection and turnaround activity at Energy Services has been impacting Aegion's performance over the past few quarters.
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