Today's Must Read
ExxonMobil (XOM) Banks on Guyana Discoveries, Refining Weak
Amgen (AMGN) Boasts a Strong Branded/Biosimilars Pipeline
Thursday, July 02, 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), Exxon Mobil (XOM) and Amgen (AMGN). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Netflix’s shares have outperformed the Zacks Broadcast Radio and Television industry over the past year (+25.7% vs. +3.1%). The Zacks analyst believes that regional programming focus has expanded the streaming giant's 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.
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.
However, Netflix expects viewing and subscriber growth to decline once the coronavirus-related lockdowns and movement restrictions are lifted. Moreover, absence of new seasons for popular shows like Money Heist and Stranger Things is expected to affect subscriber growth in the third and fourth quarter of 2020 amid increasing competition.
Shares of Exxon Mobil have lost -37.1% over the past six months against the Zacks Integrated International Oil industry’s fall of -39.5%. The Zacks analyst believes that the integrated firm also has a strong balance sheet with significant low debt exposure. This will help the firm weather the low commodity pricing environment.
ExxonMobil’s bellwether status in the energy space, optimal integrated capital structure that has historically produced industry-leading returns and management’s track record of capex discipline across the commodity price cycle makes it a relatively lower-risk energy sector play. Notably, the company estimates gross recoverable resource of more than 8 billion oil-equivalent barrels from offshore Guyana discoveries.
However, strict social-distancing measures, taken to combat the coronavirus pandemic, have dented demand for the company’s refined petroleum products. Outlook for ExxonMobil’s chemical business is also gloomy since demand for petrochemicals remains weak.
Amgen’s shares have gained +26.1% over the past three months against the Zacks Biomedical and Genetics industry’s rise of +29.6%. The Zacks analyst believes that products like Prolia, Evenity, Repatha, Aimovig, Otezla and biosimilars will drive Amgen’s sales this year.
Amgen boasts of a strong biosimilars portfolio, which can drive long-term growth. Amgen is also progressing with its pipeline while regularly pursuing “external opportunities” such as the acquisition of Otezla and the stake in China's BeiGene.
Amgen also expects several important clinical data readouts from its innovative pipeline in 2020. However, pricing and competitive pressure are concerns. Amgen also expects a significant impact from coronavirus-related business disruption in Q2, which it expects to ease in the second half of 2020.
Other noteworthy reports we are featuring today include PayPal (PYPL), Humana (HUM) and FedEx (FDX).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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>>>