Top Stock Reports For Eli Lily, HSBC, Marriott & Others
Zacks Investment Research | May 31, 2017 12:23AM ET
Wednesday May 31, 2017
Today's Research Daily features new research reports on 16 major stocks, including Eli Lily (LLY), HSBC (HSBC) and Marriott (MAR).You can see
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 +5.7% over the last 12 months vs. +1.7% gain for the Zacks Pharma industry and -0.7% decline for the Zacks Medical sector as a whole. Lilly’s recent high-profile pipeline setbacks are a concern for investors. But the Zacks analyst is encouraged by the fact that Lilly expects to launch 20 new products in a 10 year time-frame ranging from 2014 to 2023 and could launch at least 2 new indications/line extensions on average every year. Moreover, Lilly returned to annual dividend hikes in Dec 2016 and plans to return excess cash through share buybacks. (You can ) .
Shares of Buy rated HSBC outperformed the Zacks Foreign Banks industry over the last three months, gaining +7.3% vs -1.7%. The Zacks analyst likes its extensive global network, strong capital position and a solid asset growth. Moreover, continued disposal of unprofitable/non-core operations has enhanced its efficiency, as operating costs remain manageable. Further, the company remains on track to achieve its 2017 cost savings target. However, operating uncertainty in the post-Brexit Europe remains a major cloud on the bank as are recent muted trends in loan demand. (You can ) .
Marriott’s shares have outperformed the Zacks Hotels industry in the year-to-date period (the stock is up +28.9% vs. +3.9% gain for the industry). With the purchase of Starwood, Buy-rated Marriott became the world’s largest hotel company that provides it with increased scale and a robust development pipeline. The Zacks analyst likes Marriott’s rising North American business and large international exposure and thinks they should continue to drive growth. Further, investments in technology for hotel bookings are likely to improve guest experience and thus boost occupancy. Yet, political uncertainties in key international markets and currency headwinds remain causes of concern. (You can ) .
Other noteworthy reports we are featuring today include Kinder Morgan (NYSE:KMI), American Airlines (AAL) and Humana (HUM).
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Sheraz Mian
Director of Research
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
Sanofi has many new drugs in its portfolio and candidates in its pipeline that can boost growth. The Zacks analyst is optimistic on sales prospects of recently approved eczema treatment Dupixent.
Though positive on American Airlines' views on unit revenues and pre-tax margin for Q2, the Zacks analyst expects high costs to hurt the company's near-term earnings.
The covering analyst thinks NetApp is benefiting from robust performance of its Strategic solutions including the all-flash array business.
The Zacks analyst is bullish on Patterson Companies' steadily growing sales in the Animal Health unit. However, declining consumable sales at the Dental segment is a concern.
Per the Zacks analyst, Brown-Forman expects currency woes and tough economic conditions in the emerging markets, to linger and hurt results in fiscal 2017.
The covering analyst thinks Humana's strong Government business, efficient capital deployment, investment and acquisitions will drive long term growth.
The Zacks analyst believes Eaton's restructuring efforts will boost its margin.
Sanofi has many new drugs in its portfolio and candidates in its pipeline that can boost growth. The Zacks analyst is optimistic on sales prospects of recently approved eczema treatment Dupixent.
Though positive on American Airlines' views on unit revenues and pre-tax margin for Q2, the Zacks analyst expects high costs to hurt the company's near-term earnings.
The covering analyst thinks NetApp is benefiting from robust performance of its Strategic solutions including the all-flash array business.
The Zacks analyst is bullish on Patterson Companies' steadily growing sales in the Animal Health unit. However, declining consumable sales at the Dental segment is a concern.
Per the Zacks analyst, Brown-Forman expects currency woes and tough economic conditions in the emerging markets, to linger and hurt results in fiscal 2017.
The covering analyst thinks Humana's strong Government business, efficient capital deployment, investment and acquisitions will drive long term growth.
The Zacks analyst believes Eaton's restructuring efforts will boost its margin.
New Upgrades/h6
The Zacks analyst is upbeat on Veeva's commercial cloud platform, which registered multiple contracts around the world in Q1. A stable guidance for fiscal 2018 boosts our confidence on the stock.
Per the Zacks analyst, Donaldson's first-fit program wins, aftermarket presence and solid financial health offers it competitive edge over peers. Recent stabilization of markets adds to strength.
The covering analyst thinks the company's execution on diversification and growth strategy, leadership in technology, product innovation, a number of acquisitions will drive long term growth
The Zacks analyst is upbeat on Veeva's commercial cloud platform, which registered multiple contracts around the world in Q1. A stable guidance for fiscal 2018 boosts our confidence on the stock.
Per the Zacks analyst, Donaldson's first-fit program wins, aftermarket presence and solid financial health offers it competitive edge over peers. Recent stabilization of markets adds to strength.
The covering analyst thinks the company's execution on diversification and growth strategy, leadership in technology, product innovation, a number of acquisitions will drive long term growth
New Downgrades/h6
According to the Zacks covering analyst Kinder Morgan's future cash flow realizations could be hurt by opposition to the Trans Mountain expansion project.
The covering analyst thinks that frequent safety recalls, higher R&D expenses and currency headwinds pose concerns for the company. Honda has also provided a weak income guidance for fiscal 2018.
The Zacks analyst stresses that Archer-Daniels continued its dismal sales surprise trend in Q1. The company is still reeling under industry hurdles like oversupply, thin margins and stiff competition.
According to the Zacks covering analyst Kinder Morgan's future cash flow realizations could be hurt by opposition to the Trans Mountain expansion project.
The covering analyst thinks that frequent safety recalls, higher R&D expenses and currency headwinds pose concerns for the company. Honda has also provided a weak income guidance for fiscal 2018.
The Zacks analyst stresses that Archer-Daniels continued its dismal sales surprise trend in Q1. The company is still reeling under industry hurdles like oversupply, thin margins and stiff competition.
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