Today's Must Read
Product Demand & Buyouts to Aid Danaher (DHR), Costs Ail
Acquisitions, Solid Asset Balance Support BlackRock (BLK)
Tuesday, April 23, 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 Roche (RHHBY), Danaher (DHR) and BlackRock (BLK). 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 >>>
Buy-ranked Roche’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry in the past six months, gaining +10.5% vs. a decline of -1.0%. The Zacks analyst thinks Roche posted strong sales for the first quarter of 2019, propelled by demand for new drugs amid biosimilar competition for legacy drugs. Consequently, the company raised its guidance for the year.
Strong performance of Ocrevus, Perjeta, Tecentriq and Hemlibra offset lower sales of MabThera/Rituxan. In particular, MS drug Ocrevus witnessed strong growth, driven by increased demand. Also, label expansion of Tecentriq into various indications contributed to first-quarter sales.
Meanwhile, the company is looking to restructure its portfolio beyond oncology into MS and haemophilia, among others. Roche dominates the breast cancer space with strong demand for its HER2 franchise drugs.
Shares of Danaher have gained +19.7% over the past three months, outperforming the Zacks Diversified Operations industry, which has increased +16.5% over the same period. In first-quarter of 2019, the company’s earnings and sales beat estimates.
The Zacks analyst thinks sturdier demand for innovative products, effective Danaher Business System (“DBS”) implementation and shareholder-friendly policies will likely bolster profitability going forward. Also, it anticipates that the acquisition of General Electric Company’s BioPharma business will complement its biologics workflow solutions of the Life Sciences segment. The divestiture of its dental business will boost its competency.
However, rising cost of sales and unfavorable movements in foreign currencies might continue to restrict Danaher’s growth. For 2019, the company lowered adjusted earnings per share guidance, primarily reflecting dilutive impact of funds raised for the BioPharma buyout.
BlackRock’s shares have gained +22.5% in the past six months, outperforming the Zacks Investment Management industry’s increase of +15.5% during the same period. The company’s earnings surpassed expectations in three of the trailing four quarters.
The Zacks analyst thinks its first-quarter 2019 results benefited from lower expenses and higher assets under management (AUM), partly offset by lower revenues. The company’s initiatives to restructure its actively managed equity business, and expand globally via acquisitions to further boost top line and AUM remain impressive.
While a steady increase in operating expenses and high dependence on overseas revenues remain matters of concern, the company’s capital deployment actions reflect strong balance sheet position.
Other noteworthy reports we are featuring today include Cigna (CI), Kinder Morgan (KMI) and Allstate (ALL).
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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>>>