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Research Daily

Mark Vickery

Top Stock Reports for Boeing, Lockheed Martin & Anthem

BA LMT DAL CL ABBV

Trades from $3

Friday, April 5, 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 Boeing (BA), Lockheed Martin (LMT) and Anthem (ANTM). 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 >>>

Strong Buy-ranked Boeing’s shares have gained +17.6% in the past year, outperforming the Zacks Aerospace & Defense industry, which declined -3.5% during the same time period. The Zacks analyst emphasizes that the company is the largest aircraft manufacturer in the world.

The company’s 20-year market outlook forecasts commercial jetliner demand to increase by 4.1%. Single-aisle jets are expected to be the major driver behind this growth. Boeing expects commercial orders to be fueled by sustained annual growth in commercial passenger traffic along with a big wave of retiring, old planes. Its strong balance sheet and cash flows provide financial flexibility in matters of incremental dividend, ongoing share repurchases and earnings accretive acquisitions.

Its revenue exposure is also spread across more than 90 countries around the globe. However, the aerospace giant may face competitive challenges once new manufacturers like China enters the commercial jet space.

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

Shares of Lockheed Martin have lost -13.6% in the past year, underperforming the Zacks Aerospace Defense industry, which has declined -3.5% over the same period. The Zacks analyst thinks that since it is the largest defense contractor in the world, Lockheed Martin enjoys a strong demand for its high-end military equipment in domestic as well as international markets.

Consequently, robust order growth has been a primary growth driver for this company. The F-35 program continues to be a primary growth driver for the company. Lockheed Martin frequently procures significant contracts that are a major growth driver for its revenues.

However it faces intense competition for its broad portfolio of products and services in both domestic and international markets. It remains subject to interest rate risk related to the issuance of debt.

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

Buy-ranked Anthem’s shares have outperformed the Zacks Medical Insurance industry's rally in the past year (up +26.2% vs. +8.2%). Moreover, it has witnessed its 2019 and 2020 earnings estimates move north over the last 30 days. The Zacks analyst thinks the company's prudent acquisitions complement its organic growth.

Its consistently growing topline paves the way for long-term growth. A diverse product portfolio has also helped the company enhance its underwriting results. Anthem’s strong capital position backs effective capital deployment via share buybacks and regular dividends. A strong outlook for 2019 instills investor's confidence in the company.

However, its declining membership is a persistent concern. Also, the company has been suffering from high benefit costs and rising selling, general and administrative expenses.

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

Other noteworthy reports we are featuring today include AbbVie (ABBV), Colgate-Palmolive (CL) and Delta Air Lines (DAL).

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

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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