Today's Must Read
Opdivo, Eliquis Fuel Bristol-Myers (BMY) Amid Competition
Segmental Growth Aids Walgreens (WBA) Amid Coronavirus Impact
Thursday, April 16, 2020
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 Comcast (CMCSA), Bristol-Myers Squibb (BMY) and Walgreens Boots Alliance (WBA). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Comcast’s shares have underperformed the Zacks Cable Television industry over the past six months (-18.8% vs. -11%). The Zacks analyst believes that Comcast is benefiting from solid high-speed Internet customer wins.
The company’s strategy to provide high-speed Internet at an affordable price plays a pivotal role in improving customer experience. Moreover, its Internet business is expected to gain traction from strong demand as more and more people stay at home due to the coronavirus outbreak. Increased media consumption and work-from-home wave bode well for Comcast.
Growing popularity of Xfinity and Flex products is also a major catalyst. Additionally, Sky’s content strength is expected to drive the subscriber base in Europe. However, Comcast continues to lose video subscribers due to cord cutting. Theme Parks remain closed on account of the coronavirus spread. Higher debt level is also a key concern.
Shares of Bristol-Myers have gained 31.4% over the past year against the Zacks Large Cap Pharmaceuticals industry’s rise of 9.3%. The Zacks analyst believes that Bristol-Myers’ blockbuster immuno-oncology drug, Opdivo, maintains momentum.
Blood thinner drug, Eliquis, has propelled sales significantly and is expected to drive further growth, owing to increased share in the NOAC market. Empliciti and Sprycel are also performing well on label expansions. Meanwhile, the acquisition of Celgene has strengthened the company’s oncology portfolio with the addition of Revlimid and its pipeline with encouraging candidates.
However, concerns will rise once Revlimid loses patent protection. Moreover, the company is facing headwinds like stiff competition from other immuno-oncology drugs and pipeline setbacks.
Walgreens’ shares have lost 19.9% over the past three months against the Zacks Drug Stores industry’s fall of 20.8%. The Zacks analyst believes that the uptick in Retail Pharmacy USA came from comparable prescription sales growth and a strong retail prescription market. Rise in Pharmaceutical Wholesale sales buoy optimism too.
Walgreens Boots posted better-than-expected second-quarter fiscal 2020. Amid the coronavirus-led doldrums, these businesses recorded sales growth on rising customer demand. Progress made from new strategic partnerships was impressive.
However, decline in adjusted earnings is concerning. Dullness in the Retail Pharmacy International was due to poor testing market conditions. Also, the company did not update its guidance, given the pandemic’s rapidly changing variables. Tough market conditions, margin pressure and stiff competitive landscape are other headwinds for the company.
Other noteworthy reports we are featuring today include UnitedHealth Group (UNH), Sanofi (SNY) and Xcel Energy (XEL).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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>>>