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The Zacks Analyst Blog Highlights Merck, Bristol-Myers Squibb and Deere
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For Immediate Release
Chicago, IL – December 12, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Merck & Co., Inc. (MRK - Free Report) , Bristol-Myers Squibb Co. (BMY - Free Report) and Deere & Co. (DE - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Early Q4 Earnings Results and Analyst Reports for Merck, Bristol-Myers and Deere
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features an update on the Q4 earnings season which got underway this week. We are also featuring the updated December Economic Outlook report, in addition to new research reports on 16 major stocks, including Merck & Co., Inc. (MRK - Free Report) , Bristol-Myers Squibb Co. (BMY - Free Report) and Deere & Co. (DE - Free Report) .
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
This week's quarterly reports from AutoZone (AZO) and Costco (COST) for their fiscal quarters ending in November that we count as part of the 2022 Q4 earnings tally. Next week's reports from the likes of Adobe, Orable, Accenture, Lennar and others will similarly count as part of the 2022 Q4 tally.
Aggregate Q4 earnings for Costco and AutoZone are up +2.2% from the same period last year on +8.1% higher revenues, with only one of the two (AutoZone) beating EPS and revenue estimates.
Looking at Q4 as a whole, total S&P 500 earnings are expected to be down -5.9% from the same period last year on +4.3% higher revenues.
Excluding contributions from the Energy sector whose earnings are expected to be up +56.9%, Q4 earnings for the rest of the index are expected to be down -10.3% from the same period last year. Estimates have been steadily coming down, with the current -5.9% decline down from +1.7% on October 5th.
Today's Featured Analyst Reports
Shares of Merck & Co have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+52.7% vs. +19.3%) on the back of strong sales momentum from drugs like Keytruda and the Gardasil vaccine. With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver.
Animal health and vaccine products are core growth drivers. Its new COVID oral antiviral pill, Lagevrio has become a key top-line driver in 2022. Merck boasts a strong cancer pipeline, including Keytruda, which should help drive long-term growth.
However, generic competition for several drugs and rising competitive pressure, mainly on the diabetes franchise, will continue to be overhangs on the top line. There are concerns about Merck’s ability to grow its non-oncology business ahead of Keytruda’s loss of exclusivity later in the decade.
Shares of Bristol-Myers Squibb have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+41.7% vs. -17.8%). Solid demand for the company’s blood thinner drug Eliquis and the label expansion of Opdivo are maintaining momentum for Bristol-Myers. Eliquis is the leading oral anticoagulant drug and continues to experience growth in its market share.
The label expansion of Opdivo into indications for lung cancer, renal cancer and gastric cancer boosted sales. The recent approval of drugs like Opdualag, Breyanzi and Sotyktu will add a new stream of revenues. Our estimates for BMY’s top line suggest a CAGR of around 1% over the next three years, driven by solid demand for legacy drugs and the approval of new drugs.
However, Revlimid, one of the top revenue generators, is facing generic competition and sales are being adversely impacted.
Deere & Company shares have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+23.6% vs. +21.7%). The company is poised well to gain on improving commodity prices, which will encourage farmers to spend more on farm equipment. Strong replacement demand will also continue to boost its top line.
Demand for Construction equipment will likely benefit from anticipated growth in infrastructure investments. Higher material and labor costs will likely dent margins. However, we expect Deere’s adjusted earnings per share to grow 16% in fiscal 2023, led by strong demand and pricing. Product launches equipped with the latest technology to make farming automated will continue to provide it with an edge over its competitors.
It will benefit in the long run from rapid growth in global population as well as the rising worldwide infrastructure needs. Our estimates for Deere’s bottom line suggest a CAGR of around 2% over the 2022-2025 forecast period.
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Merck, Bristol-Myers Squibb and Deere
For Immediate Release
Chicago, IL – December 12, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Merck & Co., Inc. (MRK - Free Report) , Bristol-Myers Squibb Co. (BMY - Free Report) and Deere & Co. (DE - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Early Q4 Earnings Results and Analyst Reports for Merck, Bristol-Myers and Deere
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features an update on the Q4 earnings season which got underway this week. We are also featuring the updated December Economic Outlook report, in addition to new research reports on 16 major stocks, including Merck & Co., Inc. (MRK - Free Report) , Bristol-Myers Squibb Co. (BMY - Free Report) and Deere & Co. (DE - Free Report) .
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 >>>
Zacks Economic Outlook for December 2022 ----> Christmastime U.S. Retail Sales Update
Q4 Earnings Season Gets Underway
This week's quarterly reports from AutoZone (AZO) and Costco (COST) for their fiscal quarters ending in November that we count as part of the 2022 Q4 earnings tally. Next week's reports from the likes of Adobe, Orable, Accenture, Lennar and others will similarly count as part of the 2022 Q4 tally.
Aggregate Q4 earnings for Costco and AutoZone are up +2.2% from the same period last year on +8.1% higher revenues, with only one of the two (AutoZone) beating EPS and revenue estimates.
Looking at Q4 as a whole, total S&P 500 earnings are expected to be down -5.9% from the same period last year on +4.3% higher revenues.
Excluding contributions from the Energy sector whose earnings are expected to be up +56.9%, Q4 earnings for the rest of the index are expected to be down -10.3% from the same period last year. Estimates have been steadily coming down, with the current -5.9% decline down from +1.7% on October 5th.
Today's Featured Analyst Reports
Shares of Merck & Co have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+52.7% vs. +19.3%) on the back of strong sales momentum from drugs like Keytruda and the Gardasil vaccine. With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver.
Animal health and vaccine products are core growth drivers. Its new COVID oral antiviral pill, Lagevrio has become a key top-line driver in 2022. Merck boasts a strong cancer pipeline, including Keytruda, which should help drive long-term growth.
However, generic competition for several drugs and rising competitive pressure, mainly on the diabetes franchise, will continue to be overhangs on the top line. There are concerns about Merck’s ability to grow its non-oncology business ahead of Keytruda’s loss of exclusivity later in the decade.
(You can read the full research report on Merck & Co here >>>)
Shares of Bristol-Myers Squibb have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+41.7% vs. -17.8%). Solid demand for the company’s blood thinner drug Eliquis and the label expansion of Opdivo are maintaining momentum for Bristol-Myers. Eliquis is the leading oral anticoagulant drug and continues to experience growth in its market share.
The label expansion of Opdivo into indications for lung cancer, renal cancer and gastric cancer boosted sales. The recent approval of drugs like Opdualag, Breyanzi and Sotyktu will add a new stream of revenues. Our estimates for BMY’s top line suggest a CAGR of around 1% over the next three years, driven by solid demand for legacy drugs and the approval of new drugs.
However, Revlimid, one of the top revenue generators, is facing generic competition and sales are being adversely impacted.
(You can read the full research report on Bristol-Myers Squibb here >>>)
Deere & Company shares have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+23.6% vs. +21.7%). The company is poised well to gain on improving commodity prices, which will encourage farmers to spend more on farm equipment. Strong replacement demand will also continue to boost its top line.
Demand for Construction equipment will likely benefit from anticipated growth in infrastructure investments. Higher material and labor costs will likely dent margins. However, we expect Deere’s adjusted earnings per share to grow 16% in fiscal 2023, led by strong demand and pricing. Product launches equipped with the latest technology to make farming automated will continue to provide it with an edge over its competitors.
It will benefit in the long run from rapid growth in global population as well as the rising worldwide infrastructure needs. Our estimates for Deere’s bottom line suggest a CAGR of around 2% over the 2022-2025 forecast period.
(You can read the full research report on Deere & Company here >>>)
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.