Today's Must Read
Loan Growth, Branch Consolidation to Support JPMorgan (JPM)
Celgene (CELG ) Revlimid Strong, Focus on Label Expansion
Tuesday, July 18, 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), JPMorgan (JPM) and Celgene (CELG). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Apple’s shares are up +29.1% in the year-to-date period, handily outperforming the S&P 500 (up +10%) and the Zacks Technology sector (up +16.5%), 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 Buy rated JPMorgan have gained +9.7% over the past six months, outperforming the Zacks Major Regional Banks industry, which is up +6.7% over the same period. The company’s second-quarter 2017 earnings handily outpaced expectations. The Zacks analyst likes the company’s steady capital deployment activities (dividend hike and share buyback), which reflects its strong balance sheet position.
The company remains well-positioned to benefit from the improved rate scenario and rising loan demand. Synergies from retail banking performance and cost-containment efforts will help improving its profitability, going forward. However, a persistent fee income growth challenge remains a major headwind. Also, litigation hassles remain a concern.
Buy rated Celgene’s shares have gained +16.6% year to date, outperforming the Zacks Medical - Biomedical and Genetics sector which has gained +8.7% 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 PNC Financial (PNC), PayPal (PYPL) and Vertex Pharmaceuticals (VRTX).
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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>>>