Top Stock Reports for Bristol-Myers, Qualcomm & Citigroup

Thursday, August 31, 2018

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 Bristol-Myers Squibb (BMY), Qualcomm (QCOM) and Citigroup (C). 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 >>>

Shares of buy-rated Bristol-Myers have underperformed the Zacks Large Cap Pharmaceuticals industry in the last six months, losing -7.6% vs. a gain of -7.9%. However, Bristol-Myers' blockbuster immuno-oncology drug Opdivo continues to maintain momentum.

Opdivo’s performance is being boosted by the uptake in new indications, first line renal cell and adjuvant melanoma. Several label expansion applications for Opdivo are under review in the United States and Europe. The drug was recently approved for small cell lung cancer in the United States and melanoma in Europe. 

Potential approval in other indications will further boost the prospects of this blockbuster drug. Eliquis is expected to drive further growth in 2018 driven by increases in market share in the novel oral anticoagulant (NOAC) market.

The label expansion of other drugs like Sprycel and Empliciti also bode well for the company. However, pricing concerns, stiff competition in the immuno-oncology space are expected to remain an overhang.

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

Buy-rated Qualcomm’s shares have gained +30.9% over the past one year vs +23.8% for the Zacks Wireless Equipment industry as it remains focused on $1 billion cost-cut plan. Qualcomm has been trying to retain its leadership in 5G, chipset market and mobile connectivity with multiple technological achievements and innovative product launches.

The company’s improved and upgraded technologies will likely enable various firms to build new and updated products and services across the wireless ecosystem to better serve customers. Qualcomm aborted the proposed acquisition of NXP Semiconductors as it failed to get the anti-trust approval from China, thereby eliminating the uncertainty with the deal stuck in red tape for 21 months.

This is likely to pave the path for focused organic growth of the company. However, regulatory disputes and aggressive competition in the mobile phone chipset market continue to hurt Qualcomm. Headwinds from weaker industry conditions have further dented margins.

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

Shares of Citigroup have underperformed the Zacks Banks - Major Regional industry over the last six months (-3% vs. 1.2%). Yet, the company possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters.

The Zacks analyst believes the company’s restructuring and streamlining efforts, strategic investments in core business, lower tax rate and expense management will likely support profitability. Recently, the capital plan approval reflects strong capital position.

Yet, several issues, including litigation burden, keep the analyst apprehensive. Also, despite rising rates, margin remains under pressure, due to persistent decline in the company’s legacy holdings portfolio.

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

Other noteworthy reports we are featuring today include Phillips 66 (PSX), Diageo (DEO) and Anthem (ANTM).

5 Companies Verge on Apple-Like Run

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Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.

A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.

Click to see them right now >>

Mark Vickery

Senior Editor

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

Opdivo, Eliquis Boost Bristol-Myers (BMY) Growth Prospects

Qualcomm (QCOM) Products Drive Wireless Ecosystem Innovation

Focus on Core Operations Aid Citigroup (C), Legal Woes Linger

Featured Reports

Cost Cuts, Dividends & Buybacks Buoy Norfolk Southern (NSC)

The Zacks analyst likes the company's efforts to reward shareholders through dividends and buybacks. Initiatives to check costs also raise optimism in the stock.

Self-pay Subscriber Growth Aids Sirius XM Holdings (SIRI)

Per the Zacks analyst, solid new car as well as used car conversion rates is significantly contributing to self-pay subscriber growth which is benefiting the company.

Strategic Buyouts and Collaborations Aid Anthem (ANTM)

Per the Zacks analyst, a number of acquisitions and active collaborations have helped Anthem expand its portfolio and boost its Medicare Advantage business.

Medical-Surgical Unit Aids McKesson (MCK), Competition Rife

McKesson has been riding on growth in the Medical-Surgical Solutions segment. However, the Zacks analyst is pessimistic about cutthroat competition in the MedTech space.

D.R. Horton's (DHI) Focus on Entry-Level Buyers Bodes Well

The Zacks analyst stresses, D.R. Horton's strategic shift toward more entry-level affordable homes is expected to yield higher absorptions.

New Project Wins to Support Praxair (PX) Amid Inflation

Per the Zacks Analyst, Praxair will gain from new orders for three onsite projects as well as CNOOC project. But, tight helium supply, rising freight and logistics costs will hurt margins.

Winnebago (WGO) Rides on Growing Motorhome Capacity & Demand

Per the Zacks analyst, Winnebago's motorhome capacity expansion supports production of Class A & Class C motorhomes. Also, growing consumer demand drives company's sales.

New Upgrades

Phillips 66 (PSX) Banks on Growing Midstream Business in US

The Zacks analyst appreciates Phillips 66's plan of capitalizing the growing demand for fresh midstream infrastructure in the prospective U.S. shale plays.

Europe & Asia Regions to Continue Driving Guess? (GES) Sales

Per the Zacks analyst, solid Europe and Asia sales have been long driving Guess? Management continues to invest in these regions that are expected to post double-digit sales growth this year.

National Fuel Gas (NFG) Gains from its Appalachian Presence

Per the Zacks analyst National Fuel Gas' high-quality acreage in Marcellus and Utica Shale is going to boost its natural gas production by 15% for next few years and drive its performance

New Downgrades

L Brands (LB) Hurt by Soft Victoria's Secret & Pink Brands

Per the Zacks analyst, L Brands Victoria's Secret brand is bearing the brunt of consumers' changing preferences and stiff competition. Moreover, softness in the Pink brand has also added to woes.

Currency Headwinds to Weigh on Diageo's (DEO) Profitability

Per the Zacks analyst, Diageo's significant international presence exposes it to major currency risks. Per current rates, currency headwinds are expected to hurt its operating profit in fiscal 2019.

Pressure Pumping Challenges Weigh on Patterson-UTI (PTEN)

Lower utilization, operational delays and weak market sentiment for Patterson-UTI's pressure pumping unit throughout 2018 have made the Zacks analyst turn bearish on the stock.

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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
 
Phillips 66 (PSX) : Free Stock Analysis Report
 
Diageo plc (DEO) : Free Stock Analysis Report
 
Citigroup Inc. (C) : Free Stock Analysis Report
 
Bristol-Myers Squibb Company (BMY) : Free Stock Analysis Report
 
Anthem, Inc. (ANTM) : Free Stock Analysis Report
 
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