Tuesday, February 21 2017

Today's Research Daily features new research reports on 16 major stocks, including Amgen (AMGN), Procter & Gamble (PG) and Bank of America (BAC). These reports have been hand-picked from the roughly 70 research reports issued by our analyst team today. You can see all of today's research reports here >>>>.

Amgen shares surpassed the Biomed-Genetics industry over the past one year, gaining +16.7% vs. a decline of -3.3%. Helping this momentum was the company's better-than-expected Q4 results, with the company beating on all fronts. The analyst likes its portfolio of blockbuster drugs, the prospect for efficiency gains from the restructuring plan and track record of returning excess cash to shareholders through dividends and buybacks. Amgen is also progressing with its pipeline given quite a few regulatory and data updates scheduled for the coming quarters. However, the company has some challenges in store given the presence of biosimilar competition and slowdown in sales of mature products. Volume growth of recently launched products may not be enough to offset the decline in mature brands. (You can read the full research report on Amgen here >>)

Procter & Gamble shares outperformed the Zacks Consumer Staples sector in the past year (+10.9% vs. +6.7%) on the back of improved organic sales and improving margins as a result of productivity gains and cost-saving efforts. Also, P&G shares have outperformed the S&P 500 index in the year-to-date period (up +8.3% vs +4.9%). P&G’s quarterly results exceeded expectations. On the flip side, the Zacks analyst points to mature end markets and the negative impact of the strong U.S. dollar as some of the headwinds for the stock. Also, flat pricing/mix is reflective of increased competition and lack of transformational innovation. The company also lost global market share in three of its five reporting segments. (You can read the full research report on Procter & Gamble here >>)

Buy rated Bank of America’s fourth-quarter 2016 earnings outpaced the Zacks Consensus Estimate, driven by impressive growth in trading revenue and mortgage banking fees. The company’s shares have been one of the biggest beneficiaries of the changed macro backdrop following the election, which includes expectations of faster economic growth and overhaul of the country's tax and regulatory systems. No doubt, Bank of America shares have been strong performers since the election - up +44.2% since November 8th vs. +28.1% gain for the Zacks Major Banks industry in that time period, but the analyst still sees plenty of upside in this Buy-rated stock.(You can read the full research report on Bank of America here >>)

Other noteworthy reports we are featuring today include Netflix (NFLX), Monster Beverage (MNST) and Honda (HMC).

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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 >>>