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Research Daily

Wednesday, April 3, 2019

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 Pfizer (PFE), Royal Dutch Shell (RDS.A) and Celgene (CELG). 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 >>>

Pfizer’s shares have outperformed the Zacks Large-Cap Pharmaceuticals industry over the past year (18.8% vs. 13.3%). Pfizer expects continued strong growth of key product franchises, including Ibrance, Eliquis, Xeljanz and Xtandi in 2019. However, loss of exclusivity on key drugs in the United States., mainly Lyrica and currency headwinds are expected to significantly hurt its 2019 sales.

Other top-line headwinds are weak sales in the EH segment, pricing pressure and rising competition. To offset the threat of generic competition, Pfizer is strengthening its pipeline as well as oncology portfolio. Pfizer looks well positioned to deliver several potential new breakthrough innovative medicines in the next five years, which can drive long-term growth. Bavencio, though currently approved for two small indications, is being considered a key long-term growth driver for Pfizer if it can gain label expansion approvals.

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

Shares ofbuy-ranked Royal Dutch Shell have lost -8.2% in the last six months, underperforming the Zacks Integrated Oil industry’s loss of -7.4% during the same period. However, the stock is poised for strong performance in 2019. The integrated behemoth's recent results have been driven by robust commodity prices and higher downstream earnings. Shell’s upstream unit profit has rebounded strongly thanks to steady commodity price recovery, while the integrated gas business — consisting of BG Group activities — impressed on the back of pricing gains.

Importantly, the Anglo-Dutch company's position as a key supplier of LNG should benefit its long-term cash flow growth. Consequently, Shell is likely to offer substantial upside from the current price levels and is viewed as a preferred supermajor to own now.

(You can read the full research report on Royal Dutch Shell here >>>).

Celgene’s shares have gained 10.1% in the last three months, outperforming the Zacks Biomedical and Genetics industry's increase of 7.5%. Celgene’s key growth driver, Revlimid continues to drive revenues. Robust performance of psoriasis drug, Otezla is also boosting performance. Investors are focusing on the company’s recent merger agreement with Bristol-Myers Squibb Company. Per the terms, Celgene shareholders will receive 1.0 share of Bristol-Myers and $50.00 in cash for each share held.

Meanwhile, Celgene is also working on label expansion of drugs like Pomalyst/Imnovid, Abraxane and Otezla, among others. The company is focused on the next cycle of innovation with five late-stage candidates — ozanimod, fedratinib, luspatercept, liso-cel and bb2121 — all of which are expected to be launched by the end of 2020.  

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

Other noteworthy reports we are featuring today include Advanced Micro Devices (AMD), Occidental Petroleum (OXY) and The Blackstone Group (BX).

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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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