Top Stock Reports For Deere, Las Vegas Sands & Vertex
Zacks Investment Research | Jun 19, 2019 02:02AM ET
Wednesday, June 19, 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 Deere (DE), Las Vegas Sands (LVS) and Vertex (VRTX). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Deere’s shares have gained +12% in the past year, outperforming the Zacks Farm Equipment industry, which has increased +10.2% over the same period. For fiscal 2019, Deere expects net sales to increase 5% year over year and net income at $3.3 billion.
Concerns stemming from the U.S-China trade war and lower commodity prices led to farmers getting cautious about their equipment purchases. However, the recently announced $16 billion aid program for American farmers impacted by the trade war is likely to bolster agricultural equipment sales, which bodes well for Deere.
Improving construction markets and the Wirtgen acquisition which has increased Deere's exposure to global transportation infrastructure will benefit results. Additionally, introduction of advanced technologies in its products will aid growth. However, raw material cost inflation, elevated expenses and unfavorable foreign currency impact remain near-term headwinds.
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Shares of Las Vegas Sands have gained +0.6% over the past three months, underperforming the Zacks Gaming industry’s increase of +0.9%. This downside can be primarily attributed to trade was trade war between Beijing and Washington.
Increased revenues at casino, rooms and mall drove the company’s top line in first-quarter 2019. It generated solid revenues from Macao operations as well. In the next couple of years, it is likely to spend $2 billion in Macao.
To strengthen the resort portfolio, Las Vegas Sands is focusing on expanding the Four Seasons Tower Suites Macao, St. Regis Tower Suites Macao and the Londoner Macao. Planned investment in new capital projects in Macao and higher revenues from The Parisian Macao are also likely to drive growth. Nevertheless, high debt and competition are worrisome. Estimates for the current year have been revised upward over the past 60 days.
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Vertex’s shares have outperformed the Zacks Biomedical and Genetics industry year to date (+7.4% vs. +5.2%). The Zacks analyst likes Vertex’s dominance in the CF market. A significant increase in the eligible patient population for its CF drugs is driving sales growth.
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Vertex’s third CF medicine, Symdeko, in a very short time, became the primary driver of CF revenues. Vertex will file a regulatory application for its VR-445 triple combination CF regimen this year, which is crucial for long-term growth as it has the potential to treat up to 90% of CF patients.
The company’s non-CF pipeline, though early stage, looks interesting with treatments being developed for sickle cell disease, thalassemia and pain. However, competitive pressure is rising in the CF market with many other companies developing triple combo CF drugs. Vertex’s dependence on just the CF franchise for growth is a concern.
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Other noteworthy reports we are featuring today include Tesla (NASDAQ:TSLA), Public Storage (NYSE:PSA) and Keurig Dr Pepper (NYSE:KDP).
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Today's Must Read/h6
Featured Reports/h6
Per the Zacks analyst, Public Storage is poised to gain from its high brand value, strategic acquisitions and robust presence in key cities. However, rising supply is a concern.
Per the Zacks analyst, Keurig Dr Pepper is witnessing strong retail market performance across most of the business, driven by market share gains across all categories. This is likely to aid top lines.
Per the Zacks analyst, Phillips 66 is strategically positioned to gain from the growing need for U.S. midstream assets. However, weak petrochemical demand will hurt the Chemical business.
Per the Zacks analyst, Interactive Brokers' focus on the Electronic Brokerage segment will aid profits. Yet, high dependence on IBG LLC will hurt financials if it fails to provide funds for taxes.
Per the Zacks analyst, strong demand for its digital solutions is boosting DXC Technology's top line.
The Zacks analyst is impressed with Copa's efforts to cut non-fuel unit costs.
According to the Zacks analyst, Jabil's top-line growth is benefiting from new contract wins in healthcare, automotive, cloud and 5G.
Per the Zacks analyst, Public Storage is poised to gain from its high brand value, strategic acquisitions and robust presence in key cities. However, rising supply is a concern.
Per the Zacks analyst, Keurig Dr Pepper is witnessing strong retail market performance across most of the business, driven by market share gains across all categories. This is likely to aid top lines.
Per the Zacks analyst, Phillips 66 is strategically positioned to gain from the growing need for U.S. midstream assets. However, weak petrochemical demand will hurt the Chemical business.
Per the Zacks analyst, Interactive Brokers' focus on the Electronic Brokerage segment will aid profits. Yet, high dependence on IBG LLC will hurt financials if it fails to provide funds for taxes.
Per the Zacks analyst, strong demand for its digital solutions is boosting DXC Technology's top line.
The Zacks analyst is impressed with Copa's efforts to cut non-fuel unit costs.
According to the Zacks analyst, Jabil's top-line growth is benefiting from new contract wins in healthcare, automotive, cloud and 5G.
New Upgrades/h6
Tesla is focusing on building its Gigafactory to produce batteries in collaboration with various partners. Per the Zacks analyst, focus on adding energy storage capacity is boosting growth momentum.
Per the Zacks analyst, Regeneron's lead drug, Eylea drives growth for the company. Strong performance of Dupixent and approval of new drugs should boost performance further for the company.
Per the Zacks analyst, Martin Marietta is poised to benefit from higher shipments, strong pricing and cost-management efforts. An uptick in non-residential construction activity bodes well.
Tesla is focusing on building its Gigafactory to produce batteries in collaboration with various partners. Per the Zacks analyst, focus on adding energy storage capacity is boosting growth momentum.
Per the Zacks analyst, Regeneron's lead drug, Eylea drives growth for the company. Strong performance of Dupixent and approval of new drugs should boost performance further for the company.
Per the Zacks analyst, Martin Marietta is poised to benefit from higher shipments, strong pricing and cost-management efforts. An uptick in non-residential construction activity bodes well.
New Downgrades/h6
Per the Zacks analyst, lower average selling prices of systems and a higher mix of newer products continue to weigh on Intuitive Surgical (NASDAQ:ISRG)'s gross and operating margins.
Per the Zacks analyst, intense competition in the wholesale power markets may hurt NRG Energy's margins. Moreover, international operational risks may negatively impact its business.
Per the Zacks analyst, Autoliv's gross margin is under strain due to raw material costs and effects of currency translation.
Per the Zacks analyst, lower average selling prices of systems and a higher mix of newer products continue to weigh on Intuitive Surgical (NASDAQ:ISRG)'s gross and operating margins.
Per the Zacks analyst, intense competition in the wholesale power markets may hurt NRG Energy's margins. Moreover, international operational risks may negatively impact its business.
Per the Zacks analyst, Autoliv's gross margin is under strain due to raw material costs and effects of currency translation.
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