Today's Must Read
Procter & Gamble's (PG) Cost Saving Plans Impress, Sales Weak
Celgene's (CELG) Revlimid Looks Strong, Otezla Remains Weak
Friday June 16 2017
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 Apple (AAPL), Procter & Gamble (PG), and Celgene (CELG).These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Apple shares are up +24.1% in the year-to-date period, handily outperforming the S&P 500 (up +9%) and the Zacks Technology sector (up +14.2%), with each of the last two earnings releases adding to the stock’s momentum. In the updated research report issued today, the Zacks analyst points out that Apple’s fortunes are tied to its flagship offering, the iPhone, at least in the near term. The buzz surrounding iPhone 8, which is already labeled a super cycle, should allay investors fear about iPhone sales trajectory. Also, the company announced an increase in the share repurchase authorization by $50 billion, taking total authorization to $300 million. Apple raised its quarterly dividend by 10.5%. However, macroeconomic headwinds in some key regions like China and increasing competition remain concerns.
Shares of Procter & Gamble outperformed the Zacks Consumer Staples sector in the past year (+7.7% vs. +5.9%). However, P&G shares have underperformed the S&P 500 index in the year-to-date period (up +6.5% vs. +9%). The company has been struggling to boost market growth for the last few quarters. Also, significant negative forex impact has been hurting sales. But the Zacks analyst likes the fact that P&G is speeding up innovations and investments to counter softening industry growth. Its productivity improvements and aggressive cost-saving efforts are also consistently helping to boost profit levels.
Celgene’s shares have gained +4.6% year to date, outperforming the Zacks Medical - Biomedical and Genetics sector which has gained +2.5% over the same period. Celgene’s multiple myeloma drug Revlimid continues to grow on the back of market share gains and increased duration. However, Otezla sales in the first quarter were impacted by managed care dynamics that drove lower total marketplace prescriptions for psoriasis therapies. The Zacks analyst likes Celgene’s ongoing label expansion efforts and pipeline development. The company anticipates several pipeline-related events over the upcoming quarters and next few years.
Other noteworthy reports we are featuring today include BlackRock (BLK), PayPal (PYPL) and Southern Company (SO).
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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>>>