Top Stock Reports For Apple, JPMorgan & Celgene
Zacks Investment Research | Jul 18, 2017 06:09AM ET
Tuesday, July 18, 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 Apple (AAPL), JPMorgan (NYSE:JPM) (JPM) and Celgene (CELG). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Apple’s shares are up +29.1% in the year-to-date period, handily outperforming the S&P 500 (up +10%) and the Zacks Technology sector (up +16.5%), with each of the last two earnings releases adding to the stock’s momentum. In the updated research report issued today, the Zacks analyst points out that Apple’s fortunes are tied to its flagship offering, the iPhone, at least in the near term.
The buzz surrounding iPhone 8, which is already labeled a super cycle, should allay investors fear about iPhone sales trajectory. Also, the company announced an increase in the share repurchase authorization by $50 billion, taking total authorization to $300 million. Apple raised its quarterly dividend by 10.5%. However, macroeconomic headwinds in some key regions like China and increasing competition remain concerns.
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Shares of Buy rated JPMorgan have gained +9.7% over the past six months, outperforming the Zacks Major Regional Banks industry, which is up +6.7% over the same period. The company’s second-quarter 2017 earnings handily outpaced expectations. The Zacks analyst likes the company’s steady capital deployment activities (dividend hike and share buyback), which reflects its strong balance sheet position.
The company remains well-positioned to benefit from the improved rate scenario and rising loan demand. Synergies from retail banking performance and cost-containment efforts will help improving its profitability, going forward. However, a persistent fee income growth challenge remains a major headwind. Also, litigation hassles remain a concern.
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Buy rated Celgene’s shares have gained +16.6% year to date, outperforming the Zacks Medical - Biomedical and Genetics sector which has gained +8.7% over the same period. Celgene’s multiple myeloma drug Revlimid continues to grow on the back of market share gains and increased duration. However, Otezla sales in the first quarter were impacted by managed care dynamics that drove lower total marketplace prescriptions for psoriasis therapies.
The Zacks analyst likes Celgene’s ongoing label expansion efforts and pipeline development. The company anticipates several pipeline-related events over the upcoming quarters and next few years.
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Other noteworthy reports we are featuring today include PNC Financial (PNC), PayPal (PYPL) and Vertex Pharmaceuticals (NASDAQ:VRTX) (VRTX).
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 11X worse than the market.
Mark Vickery
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
Vertex has two cystic fibrosis (CF) drugs - Kalydeco & Orkambi - in its portfolio with blockbuster potential. The Zacks analyst thinks Vertex's triple combination CF regimens are crucial for growth.
Sanofi's new products like Aubagio and Lemtrada are likely to continue doing well. The Zacks analyst believes that new atopic dermatitis drug, Dupixent could prove to be an important growth driver.
Per the Zacks analyst, new net business coming from engine and drivetrain-related products are driving BorgWarner. Asia, America and Europe are likely to generate the major part of the new business.
The Zacks analyst believes that strategic partnerships and mobile centrism are major drivers of PayPal's top line.
Per the Zacks analyst, improving economy and initiatives to expand market share have aided growth in loan and deposits for First Horizon.
Per the Zacks analyst, H&R Block's strategic partnership with GoHealth Insurance will enable it to foray into the health insurance brokerage business for additional revenue-generating opportunities.
The Zacks analyst is bullish on PerkinElmer's impending acquisition of Germany-based EUROIMMUN and takeover of India-based Tulip Diagnostics.
Vertex has two cystic fibrosis (CF) drugs - Kalydeco & Orkambi - in its portfolio with blockbuster potential. The Zacks analyst thinks Vertex's triple combination CF regimens are crucial for growth.
Sanofi's new products like Aubagio and Lemtrada are likely to continue doing well. The Zacks analyst believes that new atopic dermatitis drug, Dupixent could prove to be an important growth driver.
Per the Zacks analyst, new net business coming from engine and drivetrain-related products are driving BorgWarner. Asia, America and Europe are likely to generate the major part of the new business.
The Zacks analyst believes that strategic partnerships and mobile centrism are major drivers of PayPal's top line.
Per the Zacks analyst, improving economy and initiatives to expand market share have aided growth in loan and deposits for First Horizon.
Per the Zacks analyst, H&R Block's strategic partnership with GoHealth Insurance will enable it to foray into the health insurance brokerage business for additional revenue-generating opportunities.
The Zacks analyst is bullish on PerkinElmer's impending acquisition of Germany-based EUROIMMUN and takeover of India-based Tulip Diagnostics.
New Upgrades/h6
Per the Zacks analyst, First Solar is pursuing growth opportunities in countries like Japan, France, Israel, Indonesia, Malaysia, Thailand and the Philippines that will further bolster its position.
The covering analyst is encouraged by the company's efforts to maintain capacity discipline. Efforts to modernize its fleet also impress.
Per the Zacks analyst, PNC Financial's efforts to drive operational efficiency through CIP goals remain encouraging. It also continues to gain from rising loans along with easing margin pressure.
Per the Zacks analyst, First Solar is pursuing growth opportunities in countries like Japan, France, Israel, Indonesia, Malaysia, Thailand and the Philippines that will further bolster its position.
The covering analyst is encouraged by the company's efforts to maintain capacity discipline. Efforts to modernize its fleet also impress.
Per the Zacks analyst, PNC Financial's efforts to drive operational efficiency through CIP goals remain encouraging. It also continues to gain from rising loans along with easing margin pressure.
New Downgrades/h6
The Zacks analyst is concerned about Denbury's declining proved crude reserves which might affect oil output. Substantially high debt levels and weak cash balances are also potent headwinds.
Per the Zacks analyst, Dean Foods witnessed high raw milk costs in first-quarter 2017. Further, Class I Mover, a measure of raw milk expenses, increased year over year in second quarter.
Per the Zacks analyst, escalating expenses, mainly owing to higher net losses and loss expenses incurred, will continue to restrict XL Group's operating margin expansion.
The Zacks analyst is concerned about Denbury's declining proved crude reserves which might affect oil output. Substantially high debt levels and weak cash balances are also potent headwinds.
Per the Zacks analyst, Dean Foods witnessed high raw milk costs in first-quarter 2017. Further, Class I Mover, a measure of raw milk expenses, increased year over year in second quarter.
Per the Zacks analyst, escalating expenses, mainly owing to higher net losses and loss expenses incurred, will continue to restrict XL Group's operating margin expansion.
Zacks Investment Research
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