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Research Daily

Friday, February 24 2017

Today's Research Daily features new research reports on 16 major stocks, including IBM (IBM), Allergan (AGN) and Chubb (CB).

IBM shares have turned around over the last one year (up +35.1% vs. +22.6% for the Zacks Technology sector) on greater appreciation for the company's outlook. The Zacks analyst likes IBM's strategic growth initiatives, including its Big Data & business analytics, cloud computing, mobile and social business. The recent better than expected Q4 earnings report has helped sentiment as well.

The company's cloud-based products continue to win customers like Chubb. In addition, tuck-in acquisitions will lead to incremental revenues, strengthening its technology leadership and resulting in a more favorable mix of business. (You can read the full research report on IBM here.)

Allergan shares have gained +28.6% over the last three months, outperforming the Zacks Medical-Generic Drugs industry, which has increased +10.9% over the same period. Allergan reported strong fourth-quarter results, wherein both earnings and sales beat estimates. Also, the company’s 2017 sales outlook was above expectations. The Zacks analyst likes products like Botox and Linzess as well as new products, which are supporting sales growth.

With the closing of the Teva deal, Allergan can now focus on the branded segment and is using the proceeds to buy back shares, pay down debt and pursue additional deals. However, Allergan faces generic threats for legacy brands like Namenda IR/XR and Asacol HD. (You can read the full research report on Allergan here.)

Chubb shares have outperformed the Zacks Property, Casualty and Title industry over the last three months, gaining +9.8% vs. 7.4%. Chubb’s fourth-quarter earnings outperformed expectations and also improved year over year on higher net premiums written and investment income. Its inorganic growth story seems impressive and should help it achieve higher long-term ROE.

A strong capital position helps Chubb to engage in shareholder friendly moves and invest in strategic initiatives that drive growth. However, the company’s exposure to cat loss and escalating expenses are headwinds. The recent uptrend in long-term interest rates is beneficial to Chubb and others in its space. (You can read the full research report on Chubb here.)

Other noteworthy reports we are featuring today include Duke Energy (DUK), DISH Network (DISH) and HP Inc. (HPQ).

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Mark Vickery

Senior Editor

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 >>>

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