Today's Must Read
NVIDIA (NVDA) to Gain from Multiple AI Project Partnerships
Cost Control Measures Help AmEx (AXP), U.S Business a Drag
Tuesday, July 11, 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 Eli Lilly (LLY), NVIDIA (NVDA) and American Express (AXP). 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 >>>
Pharmaceutical stocks have been under pressure since last year on pricing and regulatory concerns and Eli Lilly shares have been no different. That said, the stock has done modestly better than the peer group; it is up +3.3% over the last 12 months vs. -1.4% loss for the Zacks Pharma industry and +0.6% gain for the Zacks Medical sector as a whole.
Lilly’s recent high-profile pipeline setbacks are a concern for investors. But the Zacks analyst is encouraged by the fact that Lilly expects to launch 20 new products in a 10 year time-frame ranging from 2014 to 2023 and could launch at least 2 new indications/line extensions on average every year.
Moreover, Lilly returned to annual dividend hikes in Dec 2016 and plans to return excess cash through share buybacks. Estimates have remained stable ahead of the company’s Q2 release. The company has a negative record of earnings surprises in recent quarters. (You can read the full research report on Eli Lily here >>>).
Shares of Strong Buy-rated NVIDIA have surged this year, gaining in excess of +191% versus the general semiconductors industry’s +29% gain. The Zacks analyst likes NVIDIA’s innovative product pipeline and strength in gaming and high-end notebook GPUs.
NVIDIA’s sustained efforts toward attaining robust position in several emerging industries such as Artificial Intelligence (AI), deep learning and driverless cars are other positives. The company’s focus on GRID platforms can increase GPU adoption in data centers, giving it an advantage against its competitors. (You can read the full research report on NVIDIA here >>>).
American Express shares have gained +33.8% over the last year, higher than the broader finance sector’s gain of +21.1%. The Zacks analyst likes its solid market position, strength in card business and significant opportunities from the secular shift toward electronic payments. Its strategic initiative focusing on platinum card portfolio and OptBlue program will drive business volume.
It is also benefiting from cost reduction efforts, and return of significant amounts of capital to shareholders through dividend and share buyback programs. However, increase in provision for losses, a strong U.S. dollar, loss of Costco as a client and intense competition remain major near-term concerns.
The company is scheduled to report second-quarter results on July 19. The stock has witnessed a downward revision in earnings estimate over the past 30 days. (You can read the full research report on American Express here >>>).
Other noteworthy reports we are featuring today include NIKE (NKE), Crown Castle (CCI) and State Street (STT).
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade, which could in turn save $200 billion in U.S. healthcare costs.
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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>>>