Today's Must Read
Texas Instruments (TXN) Benefits From Strong Auto Growth
Opdivo Boosts Bristol-Myers (BMY) Amid Strong Competition
Tuesday, March 27, 2018
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), Texas Instruments (TXN) and Bristol-Myers (BMY). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Strong Buy-rated Boeing’s shares have surged +86.8% in the last year, outperforming the Zacks Aerospace & Defense sector, which gained +48.4% during the same time period. The Zacks analyst stresses that Boeing is the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries. In this regard, the company’s 20-year market outlook forecasts commercial jetliner demand to increase by 3.6%.
Boeing expects single-aisle jets to be the major driver behind this demand growth. Meanwhile, Middle East has emerged as another promising market for Boeing. Yet, this aerospace company continues to face challenges from stiff competition.
Shares of Buy-rated Texas Instruments have gained +32.3% in the last year, underperforming the Zacks General Semiconductor industry which has gained +62.1% over the same period. The Zacks analyst likes the fact that the company continues to prudently invest its R&D dollars in several high margin, high-growth areas of the analog and embedded processing markets. This is gradually increasing its exposure to industrial and automotive markets and dollar content at customers, while reducing exposure to volatile consumer/computing markets.
Margins continue to expand on secular strength in the auto and industrial markets and manufacturing efficiencies that include growing 300-millimeter Analog output. Continuous dividend hike is a big positive. However, increasing competition, unfavorable currency effect and a high debt load remain concerns.
Bristol-Myers’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry in the last one year, gaining +12.8% vs. +4.2%. Bristol-Myers’ blockbuster drug Opdivo continues to perform well along with Eliquis. The guidance for 2018 was encouraging as well. The Zacks analyst likes Bristol-Myers’ efforts to develop its pipeline, especially Opdivo. Several label expansion applications for Opdivo are under review in the United States and Europe. Potential approval will boost the prospects of these drugs.
The positive results from the Checkmate-227 study for first-line treatment of lung cancer has already boosted prospects of approval. However, pricing concerns, stiff competition in the HCV and immuno-oncology space are expected to remain an overhang on the company’s shares. Yervoy’s sales are expected to be under pressure due to the adoption of Opdivo in adjuvant melanoma.
Other noteworthy reports we are featuring today include Estee Lauder (EL), Intuitive Surgical (ISRG) and Travelers (TRV).
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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>>>