Monday, August 12, 2019
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features updated research reports on 16 major stocks, including Amgen (AMGN), Uber (UBER) and Mondelez (NASDAQ:MDLZ). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.
Amgen’s shares have gained +0.8% year to date, outperforming the Zacks Biomedical and Genetics industry's decline of -1.3%. Amgen beat estimates for earnings and sales in the second quarter. The Zacks analyst thinks that while Amgen’s newer drugs — Prolia, Xgeva, Blincyto and Kyprolis — will drive sales, biosimilar and brand competition for its legacy products will curb sales growth in the second half. Meanwhile, uptake of key drug Repatha has been slow due to payer restrictions. However, recently launched products, including Aimovig and Evenity, biosimilars and international expansion should create incremental growth opportunities. In the past five years, Amgen has launched nine products, including two in new therapeutic areas. Amgen also boasts a strong biosimilars pipeline, which can drive long-term growth. The company’s restructuring plan is making it leaner and more cost efficient.
Uber’s shares have lost -3.7% since it made its trading debut on May 10 this year versus the Zacks Internet Services industry's decline of -11.8%. The ride-hailing company reported lackluster second-quarter 2019 results. In the quarter, it incurred wider-than-expected loss due to escalated expenses on sales, promotions and marketing in a bid to attract riders as well as drivers. Notably, this was Uber’s second earnings report since going public. The company's expectation of huge losses throughout 2019, since this will be its “peak investment year,” is a reason for concern. However, the increase in ridesharing revenues (up 6% in the first half of 2019) is encouraging. Uber's efforts to expand its presence across the globe should help it drive financial growth in the long run. Its endeavors to enter the promising market for driverless or self-driving cars are also impressive.
Mondelez’s shares have outperformed the Zacks Food Preparation industry over the past three months, gaining +6.8% versus +2.6%. The Zacks analyst thinks the company is steadily gaining from its strategic pricing endeavors. In fact, during the second quarter of 2019, balanced pricing and volume/mix helped it grow organic revenues. Additionally, its savings efforts are progressing well. Mondelez also focuses on brand building through innovation and acquisitions. It recently completed the buyout of a minority stake in Perfect Snacks. This step, along with investments in Hu Master and Uplift Foods, indicates the company’s efforts to boost healthy offerings. It is also bolstering its presence in emerging regions. However, the company grapples with adverse currency movements, which dented top-line performance during the second quarter. Management expects currency fluctuation to be a drag in 2019. High input costs is another concern.
Other noteworthy reports we featured today include Exxon Mobil (XOM), Boston Scientific (BSX) and Crown Castle (CCI).
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Per the Zacks analyst, Crown Castle's efforts to expand its fiber business will boost long-term results. Further, healthy leasing activity amid high demand for infrastructure remain tailwinds.
The Zacks analyst is concerned about the heavy turnaround activities that impact ExxonMobil's downstream and chemical operations.
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Per the Zacks analyst, Equity Residential is likely to ride high with steady demand for rental housing in its markets.
Per the Zacks analyst, focus on stringent cost-control initiatives, expansion of fiber-based broadband footprint in rural areas and enhancement of ethernet capabilities augur well for Frontier.
Per the Zacks analyst, buyouts like Granta Design and Helic are enabling ANSYS to offer innovative solutions and helping it fortify its foothold in the simulations market.
Office Depot's Business Acceleration Program is likely to lower costs, improve operational efficiencies and identify prudent investment opportunities. Per the Zacks analyst, this should lift margins.
The Zacks analyst is concerned that BHP Group's near term results will likely be impacted by higher operating costs, unplanned production outages and grade decline in copper.
Per the Zacks analyst, the continuing slowdown in semiconductor capital equipment spending negatively impacts MKS Instruments' growth prospects in 2019.
Per the Zacks analyst, Avis Budget faces intense competition from other players in terms of pricing. Pricing pressure in the international business is weighing on its revenue per day metric.
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