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The Zacks Analyst Blog Highlights: Chevron, Amgen, Thermo Fisher, Estee Lauder and Delta Air Lines

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For Immediate Release

Chicago, IL – October 3, 2018 – 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 Chevron (CVX - Free Report) , Amgen (AMGN - Free Report) , Thermo Fisher (TMO - Free Report) , Estee Lauder (EL - Free Report) and Delta Air Lines (DAL - Free Report) .

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Here are highlights from Tuesday’s Analyst Blog:

Top Stock Reports for Chevron, Amgen and Thermo Fisher

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Chevron, Amgen and Thermo Fisher. 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 >>>

Buy-ranked Chevron’s shares have risen +4.2% over the past year, underperforming the Zacks Integrated Oil industry's +12.2% increase. However, shares of Chevron are up nearly 100% off its August 2015 lows and poised for further capital appreciation, riding on its healthy earnings growth prospects.

The Zacks analyst thinks the company’s ‘oilier’ nature of its volume mix positions it to benefit from strengthening oil prices in its upstream business with less encumbrance from its smaller downstream unit. Chevron’s existing oil and gas development project pipeline is among the best in the industry, targeting volume growth of 4-7% in 2018. The production increase will be driven by the Australian LNG megaprojects, as well as Chevron’s stellar Permian operations.

The company also improved its cash from operations, allowing management to raise the dividend and announce a $3 billion per year share buyback program recently. Consequently, Chevron is viewed as a preferred energy play to own now.

(You can read the full research report on Chevron here >>>).

Shares of Buy-ranked Amgen have gained +19.2% year to date versus the Zacks Biomedical and Genetics industry's decline of -1.2%. Amgen’s newer drugs – Prolia, Xgeva, Blincyto, Repatha, Kyprolis – are performing well. Amgen is also progressing with its pipeline and the recent approval of migraine candidate, Aimovig was a huge boost.

The Zacks analyst thinks Amgen’s restructuring plan is making it leaner and more cost efficient. Lower taxes and share buybacks should provide some bottom-line support. However, Amgen has some challenges in store, given the slowdown in sales of mature drugs like Enbrel, Aranesp and Neulasta, which are facing an array of branded and generic competitors. Volume growth of new drugs may not be enough to offset lost sales due to the decline in mature brands.

While Neupogen is already facing U.S. biosimilar competition, Neulasta, Epogen and Sensipar could start facing the same this year. Meanwhile, uptake of key new drug, Repatha has been slow due to payer restrictions.

(You can read the full research report on Amgen here >>>).

Buy-ranked Thermo Fisher’s shares have outperformed the Zacks Medical Instruments industry over the past three months (+18.8% vs. +13.7%). The Zacks analyst likes the company’s solid international performance on strong growth in China in the last reported quarter. Thermo Fisher also saw strength in all end markets categorized either by customer type or geography.

Also, a series of product launches along with major progress in precision medicine initiatives aided the company’s performance. Moreover, the Patheon buyout has been substantially adding to the company’s value proposition for biopharma customers.

Thermo Fisher’s initiative to buy Gatan in order to boost electron microscopy suite buoys optimism. On the flip side, in the reported quarter, Thermo Fisher’s business segments were impacted by unfavorable business mix. Also, competitive headwinds and rising operating costs continue to pose a threat.

(You can read the full research report on Thermo Fisher here >>>).

Other noteworthy reports we are featuring today include Estee Lauder and Delta Air Lines.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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