Back to top

Research Daily

Tuesday, August 22, 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 Allergan (AGN), Ecolab (ECL) and Exelon (EXC). 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 >>>

Allergan’s shares have gained +7.1% year to date, outperforming the Zacks Generic Drugs industry, which has declined -19.3% over the same period. Allergan beat estimates for both earnings and sales in the second quarter. Meanwhile, the company raised its 2017 sales and earnings outlook.

The Zacks analyst likes key products like Botox and Linzess as well as new products such as Viberzi and Vraylar which are supporting sales growth. Allergan boasts dominant growth franchises in several areas and is strengthening its product portfolio through strategic acquisitions.

With the closing of the Teva deal, Allergan can now focus on the branded segment. It also boasts a strong branded pipeline with meaningful data read-outs expected in the near term. However, Allergan is facing generic competition for legacy brands like Namenda XR and Asacol HD, which concerns us. Also, competition for key growth drivers like Restasis is a concern.

(You can read the full research report on Allergan here >>>).

Shares of Ecolab have gained +11.9% year-to-date, outperforming the Zacks Specialty Chemicals industry which has increased +8.5% over the same period. Ecolab’s second-quarter earnings and revenues surpassed expectations. The Zacks analyst likes Ecolab’s robust product portfolio and expanding customer base, which will likely drive Ecolab organic sales over the long haul. In fact, the realization of targeted synergies associated with acquisitions should also pave way for margin expansion.

The company expects its water, food and beverage, and paper businesses to benefit in the near term. On the flipside, Ecolab operates in highly competitive markets, which might dent its prospects over the long haul. Volatility in foreign currency exchange rates will remain a significant headwind for the company. Ecolab also faces pricing pressure in the Energy segment which is likely to hurt profits.

(You can read the full research report on Ecolab here >>>).

Exelon shares have gained +14% over the last one year, outperforming the Zacks Electric Power Industry which has gained +8.9% over the same period. The company’s second-quarter earnings and total revenue exceeded expectations due to higher utility earnings attributable to regulatory rate increases.

The Zacks analyst thinks Exelon is well positioned to gain from rate revisions and strong operational performance across its business. Further, the company is benefiting from the Pepco Holdings acquisition. However, Exelon is subject to the impact of commodity price volatility, price fluctuation in the wholesale markets and unfavorable weather conditions. Stringent government regulation is also a cause for concern.

 (You can read the full research report on Exelon here >>>).

Other noteworthy reports we are featuring today include GlaxoSmithKline (GSK), Valero (VLO) and Rockwell Collins (COL).

Zacks' 10-Minute Stock-Picking Secret

Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.

But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month. Learn the secret >>

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>>>

Featured Reports

New Upgrades

New Downgrades