Today's Must Read
Revlimid, Eliquis Boost Bristol-Myers (BMY), Opdivo Weakens
Investment in Infrastructure and Renewable Aid NextEra (NEE)
Thursday, June 18, 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 Netflix (NFLX), Bristol-Myers Squibb (BMY) and NextEra Energy (NEE). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Netflix shares have outperformed the Zacks Broadcast Radio and Television industry over the past year (+23.1% vs. +4%), with the company benefiting from the pandemic's streaming boost. Partly offsetting the stock's positives, the Zacks analyst points out the absence of new seasons for popular shows like Money Heist and Stranger Things is expected to affect Netflix’s subscriber growth in the third and fourth quarter of 2020 amid increasing competition.
Netflix is dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content. Its regional programming focus have expanded user base.
The launch of low-priced mobile plans in India, Indonesia, Malaysia, Philippines and Thailand is also expected to expand the subscriber base in the Asia Pacific. However, Netflix expects viewing and subscriber growth to decline once the coronavirus-related lockdowns and movement restrictions are lifted.
Shares of Bristol-Myers have lagged the peer group lately, but the Zacks analyst sees the stock as well positioned for the long run given the company's blockbuster immuno-oncology drug, Opdivo, and blood thinner drug, Eliquis.
Eliquis is the leading oral anti-coagulant drug and the company continues to witness growth in both Eliquis brand and the market. The label expansion of Opdivo for first-line NSCLC should boost performance. The addition of sales from Celgene’s drugs (acquired in November 2019) has boosted growth prospects.
In particular, the addition of Revlimid has strengthened its oncology portfolio. However, the company trimmed its revenue forecast with the first-quarter results. Opdivo’s performance was dismal as it faces stiff competition from Keytruda and Tecentriq. Moreover, concerns will rise once Revlimid loses patent protection. Pipeline setbacks too weighed on shares.
NextEra’s shares have gained +19.6% over the past three months against the Zacks Electric Power industry’s rise of +14.3%. The Zacks analyst believes that NextEra Energy is poised to benefit from the ongoing and long-term investment plans.
The “30 by 30” initiative will help it meet the emission reduction goal and make the generation portfolio cleaner. The $50-$55B investment through 2022 will add more clean power generation units, modernize and strengthen its infrastructure to efficiently serve the expanding customer base.
The company has enough liquidity to counter the challenges posed by COVID-19. It even continued with capital projects amid this crisis. However, its nature of business is subject to complex and comprehensive federal, state and other regulations. If the planned nuclear plant outages last longer or an unplanned outage occurs, the company’s operations and profitability might be hampered.
Other noteworthy reports we are featuring today include Goldman Sachs (GS), Sinopec (SNP) and Illumina (ILMN).
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Director of Research
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>>>