Top Analyst Reports For Bristol-Myers, ConocoPhillips & Qualcomm
Zacks Investment Research | Feb 11, 2019 01:01AM ET
Monday, February 11, 2019
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 Bristol-Myers (BMY), ConocoPhillips (NYSE:COP) and Qualcomm (QCOM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Buy-ranked Bristol-Myers’ shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past six months, -15.5% vs. +2.1%. Bristol-Myers topped fourth-quarter earnings on robust sales of Opdivo and Eliquis. Bristol-Myers' blockbuster immuno-oncology drug
The Zacks analyst thinks Opdivo’s performance is being boosted by the uptake in new indications in the United States - first line RCC and adjuvant melanoma. Eliquis is expected to drive growth, owing to increases in market share in the novel oral anticoagulant market. The label expansion of other drugs like Sprycel and Empliciti should further boost sales.
The recently announced acquisition of Celgene (NASDAQ:CELG) should strengthen the oncology franchise. However, the company’s voluntary withdrawal of the sBLA seeking approval of Opdivo+Yervoy as a treatment for first-line NSCLC with tumor mutational burden greater or equal to 10 mutations/megabase following discussions with the FDA was disappointing given the market potential.
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Shares of ConocoPhillips are up 24% over the past year, outperforming the Zacks U.S. Integrated Oil industry, which has increased +0.1% over the same period. The Zacks analyst emphasizes that in terms of production and proved reserves, ConocoPhillips is the largest oil and gas exploration and production (E&P) player in the world.
Notably, there are significant opportunities for the upstream energy player in the Eagle Ford where it owns about 3,400 undrilled locations. In fact, strong focus on two other prospective resources like Delaware basin and Bakken shale is expected to help ConocoPhillips achieve its target of more than 25% CAGR of production through 2017 to 2019.
The company recently reported strong fourth-quarter 2018 earnings, thanks to robust volumes from the unconventional assets. However, the firm’s projection of higher production and operating costs is likely to hurt its bottom line. Moreover, since majority of ConocoPhillips’ production comprises oil, the volatile crude pricing scenario could hurt the company’s operations.
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Qualcomm’s shares have lost 23.4% over the past year, underperforming the Zacks Wireless Equipment industry, which has lost -5.4% over the same period. Qualcomm reported mixed first-quarter fiscal 2019 results wherein the bottom line beat expectations but the top line missed the same. The company expects improving conditions for its chip business in the second half of fiscal 2019 on the back of new product launches.
The Zacks analyst likes how the company continues to execute its strategic objectives, including driving the global transition to 5G, protecting its intellectual property rights and expanding into new industries and product categories to stoke growth. Qualcomm’s Snapdragon 855 is gaining significant momentum with more than 100 design wins in development.
Aggressive competition in the mobile phone chipset market is likely to hurt profitability. Over the past quarters, Qualcomm’s results were adversely impacted by ongoing legal disputes with Apple (NASDAQ:AAPL). It is also facing competitive threat from its closest rival, Intel (NASDAQ:INTC).
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Other noteworthy reports we are featuring today include T-Mobile (TMUS), General Motors (GM) and Marathon Petroleum (MPC).
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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, T-Mobile remains poised to benefit from the industry-leading postpaid growth and record-low postpaid phone churn.
Per the Zacks analyst, General Motors rides on sturdy performance in North America, driven by strong pricing for its all-new full-size pickup trucks.
While the successful integration of Andeavor's operations bode well for Marathon Petroleum, the Zacks analyst is worried over lower refining profitability due to narrowing crack spreads.
Per the analyst, strong performance of Emerson's Automation Solutions segment fuelled by strong brownfield projects & MRO activities should drive its revenues.
Per the Zacks analyst, consistent rising demand for F-series trucks mainly in North America drives Ford's revenues.
Per Zacks analyst, given focus on quality remediation, product launches and supply recovery efforts, Zimmer Biomet sees growth within S.E.T arm.
Per the Zacks analyst, Willis Towers is set to grow on rising commissions and fees backed by organic growth across segments, which in turn drives higher revenues.
Per the Zacks analyst, T-Mobile remains poised to benefit from the industry-leading postpaid growth and record-low postpaid phone churn.
Per the Zacks analyst, General Motors rides on sturdy performance in North America, driven by strong pricing for its all-new full-size pickup trucks.
While the successful integration of Andeavor's operations bode well for Marathon Petroleum, the Zacks analyst is worried over lower refining profitability due to narrowing crack spreads.
Per the analyst, strong performance of Emerson's Automation Solutions segment fuelled by strong brownfield projects & MRO activities should drive its revenues.
Per the Zacks analyst, consistent rising demand for F-series trucks mainly in North America drives Ford's revenues.
Per Zacks analyst, given focus on quality remediation, product launches and supply recovery efforts, Zimmer Biomet sees growth within S.E.T arm.
Per the Zacks analyst, Willis Towers is set to grow on rising commissions and fees backed by organic growth across segments, which in turn drives higher revenues.
New Upgrades/h6
The Zacks analyst thinks that Yum! Brands' shift to refranchising substantially helped the company's operating margin while digital innovation is likely to aid top line growth.
Per the Zacks analyst, increased engine and component demand for truck production in North America and Europe drives Cummins' financials. Also, its innovative products and partnerships bode well.
Per the Zacks analyst, Buckeye Partners focus to develop domestic assets through organic means and the joint venture to develop South Texas Gateway terminal will boost its performance.
The Zacks analyst thinks that Yum! Brands' shift to refranchising substantially helped the company's operating margin while digital innovation is likely to aid top line growth.
Per the Zacks analyst, increased engine and component demand for truck production in North America and Europe drives Cummins' financials. Also, its innovative products and partnerships bode well.
Per the Zacks analyst, Buckeye Partners focus to develop domestic assets through organic means and the joint venture to develop South Texas Gateway terminal will boost its performance.
New Downgrades/h6
Per the Zacks analyst, lackluster spending by big banks particularly in Asia-Pacific and stiff competition in the IT services market hurts Cognizant's growth.
Per the Zacks analyst, increasing lead time and significant exposure to Asian markets is anticipated to limit gross margin expansion. Further, highly leveraged balance sheet is a concern.
Coty's Consumer Beauty unit has long been pressurized by supply chain woes, softness in mass beauty categories and competition. Per the Zacks analyst, recovery at this unit is likely to take time.
Per the Zacks analyst, lackluster spending by big banks particularly in Asia-Pacific and stiff competition in the IT services market hurts Cognizant's growth.
Per the Zacks analyst, increasing lead time and significant exposure to Asian markets is anticipated to limit gross margin expansion. Further, highly leveraged balance sheet is a concern.
Coty's Consumer Beauty unit has long been pressurized by supply chain woes, softness in mass beauty categories and competition. Per the Zacks analyst, recovery at this unit is likely to take time.
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