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Research Daily

Thursday, July 13, 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 Boeing (BA), AbbVie (ABBV) and U.S. Bancorp (USB). 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 >>>

Boeing’s shares have surged +56.9% over the past one-year, outperforming the Zacks Aerospace & Defense sector, which gained +24.6% during the same time period. The Zacks analyst stresses that rising demand for its commercial airplanes on the back of steady improvement in passenger and freight traffic is the major factor behind the surge in Boeing shares.

Recently, the company released 20-year market outlook, as per which it forecasts jetliner demand will increase by 3.6% over this period. Further, the company’s defense business stands out among its peers by virtue of its broadly diversified programs, strong order bookings and order backlog.

However, challenges including uncertain fate of high-cost programs, risks related to key project executions, order cancellations as well as stiff competition might have a negative impact on the company. (You can read the full research report on Boeing here >>>).

Shares of AbbVie have gained +14.8% year to date, outperforming the large cap pharma industry, which has gained +11.3% over the same period. The Zacks analyst likes its key drug Humira’s performance. Sales should continue to be driven by growing awareness, favorable clinical data, additional indications and expansion into new markets.

Moreover, products like Viekira and Imbruvica have diversified AbbVie’s revenue base. AbbVie has a deep and promising pipeline and is also working on expanding its portfolio though additional deals. On the flip side, the Zacks analyst points out that Viekira faces intense pricing pressure and competition in the HCV market.

Additionally, quite a few companies are working on bringing Humira biosimilars to the market. Estimates remain stable ahead of the company’s Q2 earnings release. AbbVie has had a mixed record of earnings surprises in recent quarters. (You can read the full research report on AbbVie here >>>).

U.S. Bancorp’s shares have underperformed the Zacks categorized Regional Banks-Major industry over the last one year, gaining +25.8% vs.39.3%. Rising expenses and litigations remain key concerns. However, the Zacks analyst thinks the company’s growth prospects should get support from its solid business model, core franchise and diverse revenue streams.

Though the company raised its prime lending rate to 4.25%, following the recent Fed interest rate hike, easing of margin pressure is skeptical. Nevertheless, the approval of Financial Choice Act is expected to support U.S. Bancorp’s profitability going forward. Notably, the bank received the Fed's approval for its 2017 capital plan. (You can read the full research report on U.S. Bancorp here >>>).

Other noteworthy reports we are featuring today include Netflix (NFLX), Biogen (BIIB) and Constellation Brands (STZ).

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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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