Friday, October 7, 2016
Today’s Research Daily features new research reports on 16 major stocks, including Amazon (AMZN), Celgene (CELG) and Chubb (CB).
Shares of Strong Buy rated Amazon have been strong performers lately (they are up more than 25% year-to-date), with analysts steadily raising estimates for this year and next. The analyst likes the manner in which Amazon is driving value across all its businesses despite the super-competitive nature of the retail business. With a number of major brick-and-mortar operators like Wal-Mart and others making concerted efforts in the online arena, Amazon has been able to capitalize on the secular growth in ecommerce with the help of not only choice and convenience but also prices. Also, the AWS generates much higher margins than retail, so it has a very positive impact on Amazon’s profitability. The company has a solid loyalty system in Prime and its FBA strategy, and content addition continues to add selection to Prime memberships. (You can read the full research report on Amazon here>> )
Celgene shares have been laggards this year, in line with the broader pharmaceutical space, reflecting political uncertainty around pricing issues. But the analyst likes buy-rated Celgene’s key growth driver, Revlimid, which continues to benefit from market share gains and increased duration. Other key products – Pomalyst/Imnovid, Abraxane and Otezla – should continue to drive the top line. The company’s raised outlook for 2016 is also encouraging. Meanwhile, label expansion of approved drugs would boost its revenues. Celgene’s pipeline also looks interesting with several data readouts expected in the second half of the year, and over the next few years. (You can read the full research report on Celgene here>> )
Chubb shares are up today, but they have struggled this year on broad macro issue notwithstanding, the analyst likes Chubb’s complementary products and services and its inorganic growth story. A strong capital position helps Chubb to engage in shareholder friendly moves and invest in strategic initiatives that drive growth. Recently, Chubb announced that its enterprise-wide insurance solution, Integrity+, will now be available in Canada. The latest policy will protect Canadian companies from errors and omissions (E&O) liability customer lawsuits. (You can read the full research report on Chubb here >> )
Other noteworthy reports we are featuring today include Monsanto (MON), Delta (DAL) and Merck (MRK).
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Sheraz Mian
Director of Research
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Today’s Must Read
Amazon (AMZN) Draws Strength from AWS & Third Party Sellers
Product Portfolio, Pipeline to Drive Celgene’s (CELG) Growth
Chubb’s (CB) Inorganic Growth Story Continues to Impress
Featured Reports
Janus Capital (JNS) Getting Acquired, Earnings to Improve
The Zacks analyst thinks Janus Capital’s latest merger agreement with Henderson Group will enhance its shareholders’ value. The deal will be accretive to its earnings and result in cost synergies.
Soft Derivative Market Likely to Weigh on CME Group (CME)
The covering analyst thinks the soft derivative market is a concern. Yet, CME is set to grow on efforts to expand and cross-sell through alliances, acquisitions, new product initiatives among others.
Acxiom (ACXM) Self Certifies for the EU-U.S. Privacy Shield
The Zacks analyst believes that Axcicom’s conformity to the EU-U.S. Privacy Shild is a positive. However, a competitive landscape coupled with weak macroeconomic conditions remain a concern.
Delta’s (DAL) September PRASM Improves, Risks Remain
The Zacks analyst is encouraged by the company’s efforts to reward shareholders and the improved PRASM performance in September. However, the 3Q forecast for the metric is disappointing.
Apache’s (APA) Alpine High Discovery to Boost Returns
The covering analyst thinks Apache’s Alpine High discovery in west Texas is a game-changer for the company.
Aflac’s (AFL) Growth Initiatives Pays Off
The Zacks analyst thinks Aflac’s efforts to modify its product portfolio to fight low interest rates will bring stability to earnings.
New Products like Keytruda Can Drive Merck’s (MRK) Growth
The covering analyst thinks that products that should contribute significantly to revenues include cancer drug Keytruda, fertility drug Elonva, Simponi, Dulera and Daxas among others.
New Upgrades
Norfolk Southern (NSC) Upgraded on Operational Improvements
The Zacks analyst believes that Norfolk Southern’s sustained efforts to boost its bottom-line with operational measures such as cost cutting coupled with shareholder returns are value accretive.
Ingersoll (IR) Focuses on Core Operations for Steady Growth
Ingersoll is likely to achieve steady improvements in operating profitability with new products, investments in IT platform and enhancement of geographic footprint and product management capabilities.
Legg Mason (LM) Well Poised for Revenue Growth, Costs Fall
The Zacks analyst thinks Legg Mason’s strategic acquisitions backed by sound liquidity position will continue to boost revenue growth. Further, cost saving measures will likely support profitability.
New Downgrades
Monsanto (MON) Down to Strong Sell on Headwind Woes
The Zacks analyst thinks weak product prices, dismal climatic conditions, industry rivalry or a strong U.S. dollar might hurt near-term results. The Bayer deal has not yet passed any regulatory hurdles.
GE (GE) Prone to High Operating Risks Despite Restructuring
The covering analyst thinks that despite prudent steps to limit financial exposure, GE is still susceptible to various market risks following the Brexit referendum and high order backlogs.
KeyCorp’s (KEY) Margins Remain under Pressure, Poses Concern
The Zacks analyst believes that KeyCorp’s net interest margin will remain pressured in the near term owing to a low rate environment. Also, stringent regulations will likely hurt bottom-line growth.
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MERCK & CO INC (MRK): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
CELGENE CORP (CELG): Free Stock Analysis Report
CHUBB LTD (CB): Free Stock Analysis Report
AMAZON.COM INC (AMZN): Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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