Top Research Reports for Netflix, Bristol-Myers & NextEra

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.

You can see all of today’s research reports here >>>

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.

(You can read the full research report on Netflix here >>>)

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.

(You can read the full research report on Bristol-Myers here >>>)

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.  

(You can read the full research report on NextEra here >>>)

Other noteworthy reports we are featuring today include Goldman Sachs (GS), Sinopec (SNP) and Illumina (ILMN).

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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>>>

Today's Must Read

Robust Content Aids Netflix (NFLX) Amid Stiff Competition

Revlimid, Eliquis Boost Bristol-Myers (BMY), Opdivo Weakens

Investment in Infrastructure and Renewable Aid NextEra (NEE)

Featured Reports

Goldman (GS) Exhibits Cost Control; Legal Issues Linger

Per the Zacks analyst, Goldman depicts cost control efforts to drive operational efficiency.

Sinopec (SNP) Banks on Gas-Rich Sichuan, Refining Hurts

Sinopec is well positioned to capitalize on mounting clean energy demand. However, weak refining business concerns the Zacks analyst.

QIAGEN Deal to Aid Illumina's (ILMN) Sequencing Portfolio

The Zacks analyst is upbeat about Illumina's pact with QIAGEN to expand the accessibility and use of NGS-based IVD kits for better patient management.

Electronic Arts (EA) Benefits From Solid Gaming Portfolio

Per the Zacks analyst, Electronic Arts' top line benefits from a burgeoning user base on the back of a sturdy gaming portfolio.

Ross Stores' (ROST) Store Reopening Drive Optimism Post COVID

Per the Zacks analyst, Ross Stores reopened 700 stores in a phased manner as on May 14 following pandemic-related closures, which are showing positive trends.

Restructuring Efforts Aid Barclays (BCS), Legal Woes Linger

Per the Zacks analyst, Barclays' business simplifying and restructuring efforts will continue to help in improving efficiency.

Williams (WMB) Rides High on its Transco Pipeline System

The Zacks analyst remains optimistic about Williams' expansion projects for its core Transco pipelines. However, the termination of the Constitution Pipeline remains a concern.

New Upgrades

Franklin (BEN) Depicts Cost Control and Solid Capital Base

Per the Zacks analyst, Franklin's efforts to drive operational efficiency remain encouraging. It also continues to benefit from a strong capital position, acquisitions and diversification.

SYNNEX (SNX) Rides on Product Strength, Acquisition Strategy

Per the Zacks analyst, SYNNEX is benefiting from solid demand for its portfolio of products and services. Also, the company's buyout of Covergys is a key driver.

Cost Cuts, Lower Alumina Costs Aid Century Aluminum (CENX)

Per the Zacks analyst, Century Aluminum will gain from its actions to reduce operating costs. Lower realized alumina cost is also expected to support the company's margins.

New Downgrades

Newell (NWL) Reels Under COVID-19 Impact, View Withdrawn

Per the Zacks analyst, Newell Brands has been witnessing significant supply-chain disruptions related to COVID-19 starting March. Owing to this, management withdrew its 2020 outlook.

New Entrants, Extended Import Tariff to Hurt Aerojet (AJRD)

Per the Zacks analyst, new industry players like SpaceX may threaten Aerojet's dominance in the space propulsion systems space. Expanded U.S. tariff on aluminum and steel imports will hike its cost.

Lower Comps & Higher Expenses to Hurt At Home (HOME)

Softness in overall consumer demand owing to coronavirus outbreak, and higher marketing and advertising expenses is a pressing concern for At Home, per the Zacks analyst.

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China Petroleum Chemical Corporation (SNP) : Free Stock Analysis Report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
Illumina, Inc. (ILMN) : Free Stock Analysis Report
 
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
 
BristolMyers Squibb Company (BMY) : Free Stock Analysis Report
 
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