Top Stock Reports For Facebook, Comcast & AbbVie
Zacks Investment Research | Apr 30, 2019 02:52AM ET
Tuesday, April 30, 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 Facebook (NASDAQ:FB), Comcast (CMCSA) and AbbVie (ABBV). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Buy-ranked Facebook’s shares have gained +48.6% year to date, outperforming the S&P 500’s increase of +17.1% during the same period. Facebook reported impressive first-quarter 2019 results, driven by solid mobile ad revenues that benefited from impression growth on both Instagram Stories and Feed, and Facebook News Feed.
Asia-Pacific remained the company’s fastest growing market, driven by user growth in India, Indonesia and the Philippines. The Zacks analyst thinks that although focus on security will likely negatively impact some advertisers’ ability to run legitimate ads on the platform, Stories are increasingly becoming an important growth opportunity for advertisers.
Interactive Stories Ads on Instagram are expected to improve interaction among people, businesses and advertisers. Further, the Checkout feature on Instagram is part of Facebook’s e-commerce endeavors. However, continued mix shift toward Stories is expected to hurt ARPU. Increasing regulatory headwinds are also a concern.
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Shares of Buy-ranked Comcast have outperformed the Zacks Cable Television industry in the past year, gaining +35.5% vs. +23%. Comcast’s first-quarter 2019 results benefited from solid growth in the number of residential high-speed Internet customers.
The Zacks analyst thinks the company’s strategy to market broadband-only packages to customers is benefiting top-line growth. Further, expanding Wi-Fi coverage along with innovative xFi control features is improving customer experience.
The company’s Xfinity Mobile is now used by more than one million customers. Wireless revenues also grew strongly in the quarter, driven by expanding customer base. Further, the Sky acquisition expanded Comcast’s international reach. Sky’s content strength is a major growth driver. However, the company continues to lose voice and video subscribers due to cord-cutting and stiff competition. Additionally, its high debt level is a headwind.
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Buy-ranked AbbVie’s shares have gained +3.1% in the past six months, outperforming the Zacks Large-Cap Pharmaceuticals industry's decline of -0.4%. AbbVie beat estimates for both earnings and sales in the first quarter. The Zacks analyst thinks AbbVie’s key drug, Humira is seeing robust growth in the United States based on strong demand trends despite new competition.
Moreover, Imbruvica has multibillion dollar potential. Mavyret has become a significant contributor to sales in a short time on the market. AbbVie has also been successful in expanding approvals for its cancer drugs, Imbruvica and Venclexta.
AbbVie has an impressive late-stage pipeline comprising several products with multibillion-dollar potential expected to be launched in the near term. Sales erosion due to direct biosimilar competition to Humira in international markets will be a big headwind in 2019. Also, costs to support expected new product/line extension launches should hurt profits in 2019.
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Other noteworthy reports we are featuring today include Union Pacific (UNP), ServiceNow (NOW) and Air Products (APD).
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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
The Zacks analyst likes the company's efforts to reward shareholders. However, its high debt levels are a concern.
While Air Products faces unfavorable currency swings, it will gain from investments in high-return projects and productivity improvement initiatives, per the Zacks analyst.
The Zacks analyst thinks TD Ameritrade is will grow through improving trading activities as DARTs continued to rise.
The Zacks analyst is encouraged by the increase in domain name base, renewal of the .com contract and price hikes for the .com and .net domain names.
Per the Zacks analyst, strong execution and ramped-up activities in Kearl, Cold Lake and Syncrude projects position Imperial Oil well for solid production growth and FCFs.
Per the Zacks analyst, Ameriprise is well positioned for top-line growth through rise in assets under management, restructuring/streamlining initiatives and efforts to modify product offerings.
The Zacks analyst believes that robust oil production from onshore Bakken play and offshore resources in the Gulf of Mexico will enable Hess to generate huge profit in the coming quarters.
The Zacks analyst likes the company's efforts to reward shareholders. However, its high debt levels are a concern.
While Air Products faces unfavorable currency swings, it will gain from investments in high-return projects and productivity improvement initiatives, per the Zacks analyst.
The Zacks analyst thinks TD Ameritrade is will grow through improving trading activities as DARTs continued to rise.
The Zacks analyst is encouraged by the increase in domain name base, renewal of the .com contract and price hikes for the .com and .net domain names.
Per the Zacks analyst, strong execution and ramped-up activities in Kearl, Cold Lake and Syncrude projects position Imperial Oil well for solid production growth and FCFs.
Per the Zacks analyst, Ameriprise is well positioned for top-line growth through rise in assets under management, restructuring/streamlining initiatives and efforts to modify product offerings.
The Zacks analyst believes that robust oil production from onshore Bakken play and offshore resources in the Gulf of Mexico will enable Hess to generate huge profit in the coming quarters.
New Upgrades/h6
Per the Zacks analyst, ServiceNow benefits from expanding Global 2000 (G2K) customer base undergoing digital transformation. Further, strategic alliances with the likes of Microsoft (NASDAQ:MSFT) are a tailwind.
Per the Zacks analyst, strong demand for F-series trucks and utilities in the United States is driving Ford's sales volumes. Also, the introduction of advanced vehicles is aiding its top line.
Per the Zacks analyst, Aflac U.S. continues to perform strongly and has boosted top-line growth. Its strong balance sheet enables share buyback & dividend payment and higher investment in business.
Per the Zacks analyst, ServiceNow benefits from expanding Global 2000 (G2K) customer base undergoing digital transformation. Further, strategic alliances with the likes of Microsoft (NASDAQ:MSFT) are a tailwind.
Per the Zacks analyst, strong demand for F-series trucks and utilities in the United States is driving Ford's sales volumes. Also, the introduction of advanced vehicles is aiding its top line.
Per the Zacks analyst, Aflac U.S. continues to perform strongly and has boosted top-line growth. Its strong balance sheet enables share buyback & dividend payment and higher investment in business.
New Downgrades/h6
The Zacks analyst is worried over Petrobras' net debt of roughly $70 billion, which has left the company two notches below an investment grade rating.
The pricing scenario is tough for Intersect ENT due to cost sensitivities. The Zacks analyst is also concerned about escalating expenses putting pressure on the bottom line.
Per the Zacks analyst, Perrigo's revenues continue to be unfavourably impacted by pricing and other macro-economic pressures.
The Zacks analyst is worried over Petrobras' net debt of roughly $70 billion, which has left the company two notches below an investment grade rating.
The pricing scenario is tough for Intersect ENT due to cost sensitivities. The Zacks analyst is also concerned about escalating expenses putting pressure on the bottom line.
Per the Zacks analyst, Perrigo's revenues continue to be unfavourably impacted by pricing and other macro-economic pressures.
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