Thursday, January 12, 2023

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Bristol-Myers Squibb Company (BMY), Honeywell International Inc. (HON) and Sony Group Corporation (SONY). 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 Squibb’s shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+11.3% vs. -13.9%) on the back of solid demand outlook for the company’s blood thinner drug Eliquis and the label expansion of Opdivo. 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.

According to the Zacks analyst estimate the 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. Shares have outperformed the industry so far this year. 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 >>>)

Shares of Honeywell International have held up a lot better than the peer group as well as the broad market reflecting recovery in commercial flight hours, strong fire products and building management system sales, strong demand in the marine products business and strength in gas processing orders as the key key catalysts helping support the stock.

Over the past year, Honeywell shares have lost -2.7% of their value vs. -15.9% decline for the Zacks Diversified Operations industry and the -17.4% decline for the S&P 500 index.

Following a strong third quarter, the company improved its earnings guidance for 2022. Pricing actions and cost-control measures support the company’s margins. Strong free cash flow generation capacity supports the company’s shareholder-friendly activities.

(You can read the full research report on Honeywell International here >>>)

Shares of Sony have underperformed the broader market over the past year (-37.5% vs. -17.4% for the S&P 500 index). The company is witnessing weak global macro-economic conditions, inflation, and increasing tension between United States and China remain major concerns. The company expects its operating income to decline 3.5% year over year, mainly due to a 35% decline in GN&S unit operating income.

Nevertheless, Sony’s performance is gaining from continued strength in Music and Pictures’ segments. The company remains focused on the premium segment of the branded products market to maximize growth. Improving sales at the company Games & Network (GN&S) segment is another tailwind.

The company now expects to sell more than 18-million-unit sales for its PlayStation 5 in the current year. For fiscal 2022, the company now expects overall sales to improve 17% due to higher Music, Pictures and G&NS segment sales. Strategic acquisitions and joint ventures bode well.

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

Other noteworthy reports we are featuring today include Cigna Corporation (CI), Airbnb, Inc. (ABNB) and Republic Services, Inc. (RSG).

Director of Research

Sheraz Mian

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>>>