Today's Must Read
Adobe (ADBE) Counts on Creative Strength, Europe A Concern
Amgen (AMGN) Banks on New Drugs Amid Rising Competition
Monday, September 17, 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 UnitedHealth (UNH), Adobe (ADBE) and Amgen (AMGN). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Buy-ranked UnitedHealth's shares have marginally underperformed the Zacks Medical Insurance industry's rally over the past year (up +33.9% vs. +35.1%). The Zacks analyst thinks UnitedHealth has been performing well on the back of solid performance by its UnitedHealthcare and Optum segments.
The company's robust Government is also driving long-term growth. Its international business and strong capital position driving business investment are the other positives. The company has been witnessing an increase in membership over the past many years.
Its raised 2018 earnings guidance should instill optimism among investors in the stock. However, the company is witnessing pressure in membership in its commercial business. Increasing consolidation will also heat up competition in the industry.
Shares of Adobe have gained +76.3% over the past year, outperforming the Zacks Software industry which has increased +38.7% over the same period. Adobe’s fiscal third-quarter results benefit from strong demand for its creative products. The company is currently benefiting from strong demand for its innovative solutions and growing subscriptions for its cloud application.
Adobe has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing. Adobe Experience Manager, which enables brands to offer a personalized experience, is also witnessing robust growth.
The Zacks analyst remains optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud. However, lower end-market demand and exposure to Europe remain overhangs.
Amgen’s shares have gained +15.4% year to date versus the Zacks Biomedical and Genetics industry's decline of -4.6%. Amgen’s newer drugs – Prolia, Xgeva, Blincyto, Repatha, Kyprolis – are performing well. Amgen is also progressing with its pipeline and the recent approval of migraine candidate, Aimovig was a huge boost.
The Zacks analyst thinks Amgen’s restructuring plan is making it leaner and more cost efficient. Lower taxes and share buybacks should provide some bottom-line support in 2018. However, Amgen has some challenges in store, given the slowdown in sales of mature drugs like Enbrel, Aranesp and Neulasta, which are facing an array of branded and generic competitors.
Volume growth of new drugs may not be enough to offset lost sales due to the decline in mature brands. While Neupogen is already facing U.S. biosimilar competition, Neulasta, Epogen and Sensipar could start facing the same this year. Meanwhile, uptake of key new drug, Repatha has been slow due to payer restrictions.
Other noteworthy reports we are featuring today include UPS (UPS), Accenture (ACN) and Bayer (BAYRY).
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
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>>>