Top Research Reports For Eli Lilly, Halliburton & Monster Beverage
Zacks Investment Research | Aug 10, 2017 06:07AM ET
Thursday, August 10, 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 Eli Lilly (LLY), Halliburton (HAL) and Monster Beverage (MNST).These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Pharmaceutical stocks have been under pressure since last year on pricing and regulatory concerns and Eli Lily shares have been no different. That said, the stock has done modestly better than the peer group; it is up +12.2% year to date vs. +10.9% gain for the Zacks Pharma industry and +9.5% increase for the Zacks Medical sector as a whole. Lilly’s second-quarter 2017 results were strong with the company beating estimates on both counts.
The company also raised its sales and earnings outlook for the year. Lilly’s new products like Trulicity, Taltz, Basaglar, Cyramza, Jardiance and Lartruvo have been performing well and the trend is expected to continue. The Zacks analyst is encouraged by the fact that Lilly expects to launch 20 new products between 2014 and 2023, including at least two new indications/line extensions on an average every year.
However, Alimta will continue to be impacted by competition. Other headwinds include competition from immuno-oncology agents as well as loss of exclusivity for many drugs.
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Oil-related stocks have been under pressure this year on stubborn global crude glut and Halliburton shares have been no different. That said, the stock has done better than the peer group; it is down -23.6% in 2017 vs. -31.2% loss for the Zacks Oil Field Services industry.
The world’s No. 2 oilfield-services provider reported strong Q2 profit thanks to improved utilization and pricing gains in North America. Halliburton's 12th consecutive quarterly beat was aided by cost saving initiatives. HAL is also set to gain from the Summit ESP buyout on account of the latter’s expertise in extending the life of shale wells.
However, pricing pressure across the international markets is likely to dampen investor confidence. Moreover, with the failure of the BHI acquisition, HAL had to book a massive $3.5 billion in breakup charges that stretched its balance sheet. Hence, the Zacks analyst thinks investors should wait for a better entry point before buying shares in HAL.
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Monster Beverage’s shares have gained +17.4% year to date, outperforming the Zacks Soft Drink industry’s gain of +13.9% during the same period. Monster Beverage’s earnings missed expectations but increased.6% year over year on higher sales. The international segment posted strong results and looks well positioned for the days ahead.
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The Zacks analyst likes the fact that the company has several new products lined up for the remaining of 2017 which are likely to boost sales. The company successfully launched or transitioned Monster Energy Drinks to Coca-Cola bottlers in a number of markets in the quarter and expects further transitions and launches in the second half of the year. However, operating expenses continue to rise. Results were also hurt by unfavorable currency rates which dented quarterly net sales.
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Other noteworthy reports we are featuring today include Huntington Bancshares (HBAN), Wellcare Health (WCG) and Liberty Global (NASDAQ:LBTYA) (LBTYA).
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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
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Newfield's strong focus on crude shale plays in the Anadarko Basin will drive oil production. However, excessive reliance on debt will hurt the firm, per the Zacks analyst.
The Zacks analyst believes that improving economy has helped Huntington witness growth in loan and deposits. However, huge exposure to commercial loans in the loan portfolio can be risky.
The Zacks analyst is bullish on Myriad Genetics receiving several reimbursement approvals worldwide for EndoPredict.
Per the Zacks analyst, Liberty Global is likely to grow strong on proposed buyout of UTV Ireland TV stations, Cable & Wireless Communications, while a competitive video market raises concern.
Per the Zacks analyst, Regal Beloit is witnessing a decline in its product prices, which will hurt its overall margins.
Jacobs intends to become a $15-billion global solutions provider with CH2M acquisition. However, the Zacks analyst perceives that headwinds like volatility in energy market to limit growth.
Per the Zacks analyst, although Wellcare Health's premium growth and inorganic strategies drive revenues, its continuously rising level of debt that also raises interest expenses, hurt the margin.
Newfield's strong focus on crude shale plays in the Anadarko Basin will drive oil production. However, excessive reliance on debt will hurt the firm, per the Zacks analyst.
The Zacks analyst believes that improving economy has helped Huntington witness growth in loan and deposits. However, huge exposure to commercial loans in the loan portfolio can be risky.
The Zacks analyst is bullish on Myriad Genetics receiving several reimbursement approvals worldwide for EndoPredict.
Per the Zacks analyst, Liberty Global is likely to grow strong on proposed buyout of UTV Ireland TV stations, Cable & Wireless Communications, while a competitive video market raises concern.
Per the Zacks analyst, Regal Beloit is witnessing a decline in its product prices, which will hurt its overall margins.
Jacobs intends to become a $15-billion global solutions provider with CH2M acquisition. However, the Zacks analyst perceives that headwinds like volatility in energy market to limit growth.
Per the Zacks analyst, although Wellcare Health's premium growth and inorganic strategies drive revenues, its continuously rising level of debt that also raises interest expenses, hurt the margin.
New Upgrades/h6
The Zacks analyst believes robust demand in the aerospace and defense end markets, as well as effective integration activities of Sargent business will boost RBC Bearings' near-term earnings.
Tyson Foods' AdvancePierre buyout has aided expanding protein packed brands portfolio. Per the Zacks analyst, rising meat demand and incremental volumes will help drive top line.
Per the Zacks analyst, JC Penney's new loyalty program and improving Sephora stores performance bode well. The company expects a significant improvement in second quarter sales on a sequential basis.
The Zacks analyst believes robust demand in the aerospace and defense end markets, as well as effective integration activities of Sargent business will boost RBC Bearings' near-term earnings.
Tyson Foods' AdvancePierre buyout has aided expanding protein packed brands portfolio. Per the Zacks analyst, rising meat demand and incremental volumes will help drive top line.
Per the Zacks analyst, JC Penney's new loyalty program and improving Sephora stores performance bode well. The company expects a significant improvement in second quarter sales on a sequential basis.
New Downgrades/h6
Per the Zacks analyst, with the primary care business under pressure, the company needs to ramp up the sales of Krystexxa, Ravicti and Actimmune to maintain top-line momentum.
The Zacks analyst believes drop in Soda Ash revenue contribution will hurt the partnership despite a sequential improvement in metallurgical coal price and royalty revenues.
Per the Zacks analyst, OGE Energy incurs huge compliance cost to abide by regulatory mandates that hover around the stock. Oklahoma's tornadoes damage its distribution lines, hindering its service.
Per the Zacks analyst, with the primary care business under pressure, the company needs to ramp up the sales of Krystexxa, Ravicti and Actimmune to maintain top-line momentum.
The Zacks analyst believes drop in Soda Ash revenue contribution will hurt the partnership despite a sequential improvement in metallurgical coal price and royalty revenues.
Per the Zacks analyst, OGE Energy incurs huge compliance cost to abide by regulatory mandates that hover around the stock. Oklahoma's tornadoes damage its distribution lines, hindering its service.
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