Monday April 17, 2017

Today's Research Daily features new research reports on 16 major stocks, including Alphabet (GOOGL), Amgen (AMGN), and Lowe’s (LOW).

Alphabet shares led the Zacks Tech sector at the start of the year, but have lagged since the weaker than expected quarterly report on January 26th (the stock is up +7.9% in the year-to-date period vs. +7.1% for the Tech sector). The stock responds strongly to quarterly earnings reports and has been weak following the last two reports, so expectations are modest ahead of the April 27th earnings release. The company is expected to earn $7.24 per share on $19.7 billion in revenues, up +20.3% and +19.3% from the year-earlier period, respectively. The Zacks analyst points out the company's good execution to date, more or less maintaining its dominant share in the competitive, fast-growing search market. The company's focus on innovation, strategic acquisitions and Android OS should continue to generate strong cash flows. However, the promise of Google's non-search businesses continue getting pushed into future even as the company's spending keeps rising. (You can read the full research report on Alphabet here >>>)

Amgen shares struggled last year, but came back strong following the election as fears of restrictive pricing and regulatory strictures eased. The stock has been down in a big way since March 1st, but has still done better than the peer group over the past year. The Zacks analyst points out that Amgen remains well positioned for growth with several blockbuster drugs in its portfolio. Amgen’s growth products – Prolia, Xgeva, Vectibix, Nplate and Sensipar – are all performing well. Additionally, Amgen’s restructuring plan should make it leaner and more cost efficient. Estimates have declined lately ahead of the company’s Q1 earnings release. The company has a positive record of earnings surprises in the recent quarters. (You can read the full research report on Amgen here >>>)

Lowe’s shares have outperformed the Zacks Building Products - Retail industry over the last three months, gaining +13.6% vs. +7.9%. An improving jobs picture, gradual recovery in the housing market and merchandising initiatives along with efforts to provide better omni-channel customer experience bode well for Lowe’s. It also remains well positioned to reap the benefits of strategic acquisitions done earlier. Better-than-expected results in the final quarter of 2016 prompted management to provide an encouraging outlook for fiscal 2017. However, the Zacks analyst thinks stiff competition and cannibalization still remain major concerns. Of late estimates have been stable. (You can read the full research report on Lowe’s here >>>)

Other noteworthy reports we are featuring today include Bristol-Myers (BMY), EOG Resources (EOG) and Priceline (PCLN). You can see all of today's research reports here >>>

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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 >>>