Friday, May 19, 2017

The Zacks Research Daily presents the best research output of our analyst team. Today’s publication features new research reports on 16 major stocks, including Bristol-Myers (BMY), Priceline (PCLN) and Phillips 66 (PSX).

These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today’s research reports here >>>

Bristol-Myers shares have underperformed the broader market as well as the large cap pharma group this year, losing -8% in the year-to-date period, on persistent concerns about generic competition for several of its key products, particularly the HCV franchise. These headwinds notwithstanding, the Zacks analyst likes the company’s improving operating outlook as reflected in management’s raised guidance at the time of the Q1 earnings release. Bristol-Myers’ key products should continue to fuel top line growth. Meanwhile, Bristol-Myers is working on expanding the Opdivo label which should boost results as well. With the FDA approving Merck’s Keytruda, for the first-line treatment of metastatic nonsquamous NSCLC, the company is expected to see further loss of market share. (You can read the full research report on Bristol-Myers here >>>)

Priceline shares performed in-line with the Zacks ecommerce industry over the last one year, gaining +43.7% vs. +44.3% and outperforming the broader Technology sector as well as the S&P 500 index. The stock has lost ground following the May 9^th quarterly release when it beat on EPS and essentially in-line revenues, but offered a subdued outlook for the current period and beyond. The soft guidance notwithstanding, the Zacks analyst likes Priceline’s strong position in international markets, good execution, prudent marketing strategy and strong financial position. The secular growth trend in the online travel booking market and growth opportunities in the domestic market are other positives. On the flip side, weaker average daily room rates, macro headwinds, increasing advertising spend and occupancy tax-related litigation remain overhangs. (You can read the full research report on Priceline here >>>)

Phillips 66 shares have done better than the Zacks oil refining & marketing industry, but they have lagged the Zacks Energy sector (the stock is down -9.4% vs. -12.4% for the industry and -8% for the Zacks Energy sector). The company’s above peer group performance this year reflects the size, efficiency and strength of each of its operations. The company is on track to fortify its position in every business segment by streamlining its asset portfolio and investing in growth opportunities. The Zacks analyst likes Phillips 66’s intention to allocate money for higher margin business units like Midstream and Chemicals instead of extensive refining and marketing operations. During first-quarter 2017, the company posted better-than-expected results following higher margins from the Refining and Chemicals businesses. However, the company’s bottom line deteriorated year-over-year owing to reduced volumes from turnaround activities and increased expenses. (You can read the full research report on Phillips 66 here >>>)

Other noteworthy reports we are featuring today include PG&E Corp. (PCG), Newell Brands (NWL) and Autodesk (ADSK).

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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>>>