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Research Daily

Tuesday, December 20 2016

Today's Research Daily features new research reports on 16 major stocks, including AbbVie (ABBV), Union Pacific (UNP) and U.S. Bancorp (USB).

Shares of AbbVie have gained +5.8% since results of the presidential election were declared on Nov 8, outperforming the Zacks Medical sector which has gained +2.3% over the same period. The analyst likes its key drug Humira’s performance. Sales should continue to be driven by growing awareness, favorable clinical data, additional indications and expansion into new markets. Moreover, products like Viekira and Imbruvica have diversified AbbVie’s revenue base. AbbVie has a deep and promising pipeline and is also working on expanding its portfolio though additional deals. On the flip side, the Zacks analyst points out that Viekira faces intense pricing pressure and competition in the HCV market. Additionally, quite a few companies are working on bringing Humira biosimilars to the market. (You can read the full research report on AbbVie here>>>)

Union Pacific shares have increased +14.1% since Nov 8, outperforming the Zacks Transportation sector, which has gained +8.4% over the same period. Driving the stock's outperformance despite well-known headwinds facing the transportation group as a whole is its track record of operating efficiencies, strong cash flows and shareholder-friendly policies. Growing optimism about the economy following hopes of market friendly policies from the new administration is helping the stock as well as the broader transportation group. However, it continues to struggle due to coal-related headwinds, which have been primarily responsible for it underperforming the broader market over the last six months. Coal woes are expected to hurt its fourth-quarter results, scheduled for Jan 19. (You can read the full research report on Union Pacific here>>>)

Buy rated U.S. Bancorp shares have outperformed the Zacks Finance sector since Nov 8, gaining +15.3% over the period versus the sector’s +11.2% increase. The analyst likes its solid business model, core franchise and diverse revenue streams. Also, the company raised its prime lending rate to 3.75%, following Fed interest rate hike to 0.50%-0.75%. This is expected to alleviate some margin pressure. Further, the company's steady capital deployment activities continue to enhance shareholders’ value. However, the stringent regulations and litigations remain key concerns. (You can read the full research report on U.S. Bancorp here>>>)

Other noteworthy reports we are featuring today include Baker Hughes (BHI), Rogers Communications (RCI) and Southwest Airlines (LUV). You can see all of today's research reports here >>>>

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Sheraz Mian

Director of Research

Note: If you want an email notification each time Sheraz publishes a new article, please click here>>>

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