Top Research Reports For NextEra, Danaher & Biogen
Zacks Investment Research | Apr 11, 2018 03:45AM ET
Wednesday, April 11, 2018
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 NextEra (NEE), Danaher (DHR) and Biogen (NASDAQ:BIIB). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Buy-ranked NextEra’s shares have outperformed the Zacks Electric Power industry over the last year (the stock is up +23.9% vs. -3.3% decline for the industry). NextEra Energy’s investment to strengthen its infrastructure and ongoing capital projects, when completed, will help it serve its expanding customer base more efficiently.
The Zacks analyst likes the company’s focus on clean energy, which has helped it lower emission levels and its use of new technology, which has saved on energy bills for its customers. The natural gas pipelines, which came online in first half of 2017, are expected to boost its performance.
However, the company’s nature of business is subject to complex and comprehensive federal, state and other regulations. Despite investments made to strengthen its infrastructure the unpredictable nature of natural disaster could derail normal operation and impact profitability.
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Shares of Buy-ranked Danaher have gained +14.4% over the past six months, outperforming the Zacks Diversified Operations industry, which has declined -11.9% over the same period. Danaher has an excellent earnings history over the trailing four quarters, beating estimates all through.
The Zacks analyst is optimistic about the company’s core revenue and earnings growth, on the back of improving order trends and rising healthcare spending. Its recent acquisitions – Pall and Cepheid – are proving to be strong profit churners, and will boost top-line growth as they become a part of the company’s core revenues.
This apart, the company’s continuous introduction of products enables it to penetrate new markets and gain competitive edge in existing ones. However, slowdown in the company’s academic business in Europe and prolonged sluggishness in the Dental business might restrict growth, going forward. Moreover, weakness in industrial markets and stiff competition may also hurt the company's financials.
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Biogen’s shares have underperformed the Zacks Biomedical and Genetics industry over the last three months (-21% vs. -9.8%). Biogen has a strong position in the MS market. The Zacks analyst also likes Biogen’s efforts to diversify beyond MS to other areas like Alzheimer’s, Parkinson's and stroke, among others.
Meanwhile, its newest drug Spinraza witnessed strong patient uptake in the U.S. and internationally. However, weakening MS trends is a concern. Tecfidera is witnessing a slight decline in U.S. patient demand due to increasing competition from oral medicines and a slowdown in the overall MS market.
The launch of Ocrevus by Roche is beginning to have a negative impact on MS franchise sales in the U.S., mainly on Tysabri. Also, recently, Biogen announced the decision to withdraw Zinbryta from the markets due to growing safety concerns. However, estimates have risen ahead of Q1 earnings results. The company has a positive record of earnings surprises in recent quarters.
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Other noteworthy reports we are featuring today include Royal Caribbean (RCL), Facebook (NASDAQ:FB) and Apple (AAPL).
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Senior Editor
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, Flowserve is set to benefit from rising short-cycle investments as client spending improves due to stable oil price, improving regulatory conditions and recent tax reforms.
Per the Zacks analyst, despite strong segmental performance and accretive acquisitions driving Ensign Group's top line higher, rising level of interest expenses weighs on the margins.
Per the Zacks analyst, increasing transaction fees will continue to boost Cboe Global Markets' revenues, thereby resulting in the company's overall growth. However, rising expenses raise concerns.
Per the Zacks analyst, prudent acquisitions, such as eVestment buyout, will continue to be accretive to Nasdaq's operational performance, resulting in overall growth.
Per the Zacks analyst, Franklin's cost control efforts and strong diversification plans might drive operational efficiency.
Per the Zacks analyst, high end-market demand for biopharmaceuticals should continue to drive Haemonetics' plasma franchise growth further.
Per the Zacks analyst, Legg Mason's strategic acquisitions have resulted in diversified product offerings and expansion in market share.
Per the Zacks analyst, Flowserve is set to benefit from rising short-cycle investments as client spending improves due to stable oil price, improving regulatory conditions and recent tax reforms.
Per the Zacks analyst, despite strong segmental performance and accretive acquisitions driving Ensign Group's top line higher, rising level of interest expenses weighs on the margins.
Per the Zacks analyst, increasing transaction fees will continue to boost Cboe Global Markets' revenues, thereby resulting in the company's overall growth. However, rising expenses raise concerns.
Per the Zacks analyst, prudent acquisitions, such as eVestment buyout, will continue to be accretive to Nasdaq's operational performance, resulting in overall growth.
Per the Zacks analyst, Franklin's cost control efforts and strong diversification plans might drive operational efficiency.
Per the Zacks analyst, high end-market demand for biopharmaceuticals should continue to drive Haemonetics' plasma franchise growth further.
Per the Zacks analyst, Legg Mason's strategic acquisitions have resulted in diversified product offerings and expansion in market share.
New Upgrades/h6
Per the Zacks analyst, new net business from engine and drivetrain-related products are driving BorgWarner. Asia, America and Europe are likely to generate the major portion of the new business.
The Zacks analyst believes Pinnacle West's investments in generation, transmission & distribution lines and customer growth driven by improving economic conditions will boost performance.
The Zacks analyst believes that Royal Caribbean's Double-Double program, a profitability improvement initiative, is contributing significantly toward increasing EPS and revenue yields.
Per the Zacks analyst, new net business from engine and drivetrain-related products are driving BorgWarner. Asia, America and Europe are likely to generate the major portion of the new business.
The Zacks analyst believes Pinnacle West's investments in generation, transmission & distribution lines and customer growth driven by improving economic conditions will boost performance.
The Zacks analyst believes that Royal Caribbean's Double-Double program, a profitability improvement initiative, is contributing significantly toward increasing EPS and revenue yields.
New Downgrades/h6
Per the Zacks analyst, L Brands' deteriorating margins and soft fiscal 2018 view are concerns. Management expects gross margin to decline in the first quarter due to a fall in merchandise margin rate.
Per the Zacks analyst, the recent data fiasco, which grabbed attention of government regulators and faced widespread backlash might hurt Facebook's user base, affecting its ad revenues.
Per the Zacks analyst, lower-than-expected demand for iPhone X is hurting Apple. Moreover, rising competition from feature-rich cheaper Chinese smartphones is a concern.
Per the Zacks analyst, L Brands' deteriorating margins and soft fiscal 2018 view are concerns. Management expects gross margin to decline in the first quarter due to a fall in merchandise margin rate.
Per the Zacks analyst, the recent data fiasco, which grabbed attention of government regulators and faced widespread backlash might hurt Facebook's user base, affecting its ad revenues.
Per the Zacks analyst, lower-than-expected demand for iPhone X is hurting Apple. Moreover, rising competition from feature-rich cheaper Chinese smartphones is a concern.
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