Friday, January 6 2016

Today's Research Daily features new research reports on 16 major stocks, including Gilead Sciences (GILD), Pepsi (PEP) and United Parcel Services (UPS).

Gilead Sciences have been laggards lately, on persistent fears about drug pricing and other regulatory issues that haven't eased up even after the November election. The stock has lost -21% of its value over the last one year vs. the -17.4% decline for the Zacks Biotech industry in that same time period. Gilead's HCV franchise continues to witness slowdown in the U.S. and Europe due to lower sales of Harvoni. These challenges notwithstanding, but the analyst also points towards the company's robust late-stage pipeline. The company's HIV franchise has been performing well, thanks to the newly launched TAF-based products Genvoya, Descovy and Odefsey. (You can read the full research report on Gilead Sciences here >>)

Pepsi shares lagged the broader market last year (+7.3% for PEP vs. +16.1% for the S&P 500), but they outperformed the Zacks Soft Drinks Beverages industry as well as Coke (KO was +0.3%). The analyst emphasizes that Pepsi has been doing well on the back of continued momentum in the Frito-Lay business, revenue management strategies, improved productivity and better market execution. Moreover, Pepsi has been seeing higher volumes and profits in the North American region due to an improving economy, better industry pricing dynamics and a consistency in positive innovation. Pepsi reports Q4 results on February 9th. (You can read the full research report on Pepsi  here >>)

UPS shares have been strong performers lately, up +24.4% in the past year. But the stock has lagged the Zacks Air Freight Industry (up +29.7%) as well as rival FedEx (up +40%). FedEx's Q4 report broadly offered favorable read-throughs for UPS's December-quarter results (it reports on January 31st), particularly with respect to volume trends over the holidays. The company's dominant ground operation positions it to be a beneficiary, along with FedEx, of the ongoing secular shift towards e-commerce. The company's strong cash flows and track record of returning excess cash to shareholders through dividends and buybacks is another positive. (You can read the full research report on United Parcel Services here >>)

Other noteworthy reports we are featuring today include Shell (RDS.A), Twitter (TWTR) and Stanley Black & Decker (SWK).

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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 Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here >>>