Top Stock Reports For Amgen, Broadcom & Starbucks
Zacks Investment Research | Jan 08, 2019 11:35PM ET
Wednesday, January 9, 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 Amgen (AMGN), Broadcom (NASDAQ:AVGO) and Starbucks (SBUX). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Amgen’s shares have gained +9.7% in the past year versus the Zacks Biomedical and Genetics industry's decline of -20.7%. Amgen’s newer drugs – Prolia, Xgeva, Blincyto, Kyprolis – are performing well. Amgen is also progressing with its pipeline and the approval of migraine candidate Aimovig was a huge boost.
The Zacks analyst thinks its strong biosimilars pipeline could be an important long-term growth driver. Amgen’s restructuring plan is making more cost efficient. Lower taxes and share buybacks should provide some bottom-line support. However, Amgen faces challenges related to its more mature products such as launch of competing biosimilar versions of Neulasta and Epogen, further sales erosion of Neupogen and Aranesp and increasing competitive pressures on Enbrel.
Meanwhile, uptake of key new drug, Repatha has been slow due to payer restrictions. Nonetheless, estimates have gone up ahead of the Q4 earnings release. Amgen has a positive record of earnings surprises in recent quarters.
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Shares of Broadcom have underperformed the Zacks Electronics - Semiconductors industry over the past year, losing -10.2% vs. a -9.7% decline. Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices.
The Zacks analyst thinks the company is benefiting from strong demand of its wireless solutions and expanding product portfolio, which makes it well-positioned to address the needs of rapidly growing technologies like IoT and 5G. Strong ties with leading OEMs across multiple target markets will help the company to gain key insights into the requirements of customers.
Further, Broadcom is a leading player in the semiconductor market based on its multiple target markets, accretive acquisitions and strong cash flow. Nonetheless, the company faces intensifying competition and integration risks due to frequent acquisitions. The company’s leveraged balance sheet and customer concentration continue to be headwinds.
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Starbucks’s shares are up +13.6% over the past three months, outperforming the Zacks Food & Restaurants industry, which is up +5.4% over the same period. The Zacks analyst thinks robust Americas and U.S. comparable store sales bode well for the company.
Starbucks’ largest market the United States, reported comps growth of 4%, which marks the strongest gain in the past five quarters. Also, the company’s operating fundamentals such as solid global footprint, successful innovations, best-in-class loyalty program and digital offerings are encouraging. Again, digital initiatives like mobile order/pay, delivery services and third-party loyalty partnerships can further stimulate robust sales trends in the Americas.
Additionally, Starbucks has teamed up with Nestle SA (SIX:NESN) to revitalize their respective coffee domains. However, operating margin contraction over the past few quarters has been a major concern. Being a retail restaurant, Starbucks is dependent on consumer discretionary spending environment.
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Other noteworthy reports we are featuring today include Citigroup (C), Kinder Morgan (NYSE:KMI) and Carnival (NYSE:CCL).
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Today's Must Read/h6
Featured Reports/h6
The Zacks analyst appreciates Kinder Morgan's ability to generate stable fee-based revenues from its extensive network of natural gas pipelines. However, huge debt burden is a concern.
The Zacks analyst is encouraged by Carnival's effort to enhance revenue yield from high ticket prices amid increased demand. However, costs related to investments and ship launches are concerns
Per the Zacks analyst, the IBX expansion strategy will strengthen Equinix's global footprint in the data-center space. However, stiff competition may negatively impact its pricing power.
Per the Zacks analyst, Interactive Brokers' focus on the Electronic Brokerage segment will aid profits.
Per the Zacks analyst, Microchip's expanding product portfolio, robust demand for microcontrollers and collaboration with Amazon (NASDAQ:AMZN) Web services will drive top-line growth.
The Zacks analyst appreciates the company's efforts to reward shareholders. Favorable pricing with respect to freight is a positive too.
Per the Zacks analyst, acquisitions and cost-saving initiatives bode well for RPM.
The Zacks analyst appreciates Kinder Morgan's ability to generate stable fee-based revenues from its extensive network of natural gas pipelines. However, huge debt burden is a concern.
The Zacks analyst is encouraged by Carnival's effort to enhance revenue yield from high ticket prices amid increased demand. However, costs related to investments and ship launches are concerns
Per the Zacks analyst, the IBX expansion strategy will strengthen Equinix's global footprint in the data-center space. However, stiff competition may negatively impact its pricing power.
Per the Zacks analyst, Interactive Brokers' focus on the Electronic Brokerage segment will aid profits.
Per the Zacks analyst, Microchip's expanding product portfolio, robust demand for microcontrollers and collaboration with Amazon (NASDAQ:AMZN) Web services will drive top-line growth.
The Zacks analyst appreciates the company's efforts to reward shareholders. Favorable pricing with respect to freight is a positive too.
Per the Zacks analyst, acquisitions and cost-saving initiatives bode well for RPM.
New Upgrades/h6
According to the Zacks analyst, Jabil's top-line growth is benefiting from new contract wins in healthcare, automotive, cloud and 5G. End-market diversification is also a key catalyst.
The Zacks analyst likes the company's efforts to modernize its fleet. Increase in passenger ticket revenues on the back of robust demand for cruise travel also raises optimism in the stock.
Ford aims at to build up a winning portfolio through new or redesigned model launches. Per Zacks analyst, this move, in the backdrop of rising appetite for crossovers, is aiding the company.
According to the Zacks analyst, Jabil's top-line growth is benefiting from new contract wins in healthcare, automotive, cloud and 5G. End-market diversification is also a key catalyst.
The Zacks analyst likes the company's efforts to modernize its fleet. Increase in passenger ticket revenues on the back of robust demand for cruise travel also raises optimism in the stock.
Ford aims at to build up a winning portfolio through new or redesigned model launches. Per Zacks analyst, this move, in the backdrop of rising appetite for crossovers, is aiding the company.
New Downgrades/h6
Per Zacks analyst, though Citigroup is working hard on streamlining activities to focus on core operations, global equity market turmoil and other macroeconomic factors may impact fee income.
Per the Zacks analyst, Cummins is being hurt by high expenses arising from headcount growth, R&D for new products and SG&A expenses. Also, low medium & heavy-duty trucks sales in China is a worry.
Per the Zacks analyst, Bed Bath & Beyond is grappling with soft margins for nine quarters now owing to higher shipping, coupon and SG&A expenses.
Per Zacks analyst, though Citigroup is working hard on streamlining activities to focus on core operations, global equity market turmoil and other macroeconomic factors may impact fee income.
Per the Zacks analyst, Cummins is being hurt by high expenses arising from headcount growth, R&D for new products and SG&A expenses. Also, low medium & heavy-duty trucks sales in China is a worry.
Per the Zacks analyst, Bed Bath & Beyond is grappling with soft margins for nine quarters now owing to higher shipping, coupon and SG&A expenses.
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