Top Stock Reports for IBM, Celgene and Procter & Gamble

Wednesday, October 18, 2017

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including IBM Corp (IBM), Celgene (CELG) and Procter & Gamble (PG). 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 >>>

IBM Corp’s shares have underperformed the broader market on a year to date basis, losing -9.2% vs. the S&P 500’s +16.4% gain. IBM’s third-quarter results benefited from higher cognitive solutions and systems revenues.

Cognitive revenues grew on strong demand for security, IoT and analytics offerings. The new z14 mainframe product drove systems revenues. IBM expects strong revenue growth in the fourth quarter on a sequential basis, driven by an anticipated solid demand for the z14 mainframe.

The Zacks analyst likes the company’s continuing strength in cloud, mobile, security and analytics as well as its cost savings actions and expects these factors to drive profitability. The company’s expanding footprint in the rapidly growing blockchain market is another positive. Continuing share buyback and dividend payout are major attractions for investors. However, intensifying competition in most of the markets is a major concern.

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

Shares of Celgene have outperformed the Zacks Biomedical and Genetics industry in the year so far, gaining +20% vs. +14.7%. Celgene’s Revlimid continued to outperform driven by further market share increases in newly diagnosed myeloma and the continued increase in treatment duration.

Other key products – Pomalyst/Imnovid, Abraxane and Otezla – also performed well. The consecutive increase in annual earnings guidance is also a positive. Celgene continues to progress with its label expansion efforts and pipeline development with sNDA submission for Revlimid in newly diagnosed multiple myeloma targeted for first-quarter 2018.

The approval of Idhifa in the U.S. for relapsed and/or refractory acute myeloid leukemia has further boosted the company’s portfolio. However, Celgene is highly dependent on Revlimid while foreign exchange headwinds are expected to continue while Abraxane sales are under competitive pressure.

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

Procter & Gamble’s shares have underperformed the Zacks Soap and Cleaning Materials industry so far this year (+13% vs. +23.5%). But the Zacks analyst likes the company’s strong brand recognition, diversified portfolio, impressive product development capabilities and marketing prowess as well as strong cash flow productivity.

The company is investing in its brands and products as well as redesigning the supply chain to improve productivity and organic growth. However, slowing market growth, weak volumes and major foreign exchange headwinds have been hurting sales. Soft consumer-spending environment in developed markets and uncertainties in emerging countries also add to the worries.

That said, P&G is speeding up innovations and investments to counter the softening industry growth. Its productivity improvements and cost-saving efforts are also consistently helping to boost profit level.

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

Other noteworthy reports we are featuring today include Valero (VLO), Gilead (GILD) and Sprint (S).

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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

Cognitive Solutions, z14 Mainframe Benefits IBM Corp (IBM)

Celgene's (CELG) Portfolio Exhibits Growth Amid Competition

Procter & Gamble's (PG) Cost Saving Plan Fights Sales Slump

Featured Reports

Sprint's (S) Unlimited Data Plans Lure Users

The Zacks analyst is bullish about Sprint's efforts to fortify itself in the wireless industry with its network modernization efforts, attractive unlimited data plans amid high debt levels.

Williams' (WMB) Dividend Coverage Healthy, High Debt a Woe

While appreciating Williams Companies' healthy dividend coverage and steady payouts, the Zacks analyst remains concerned over the energy infrastructure provider's high debt-to-equity ratio.

Omnicom (OMC) Marred by Lower Revenue Despite Organic Growth

Per the Zacks analyst, higher organic growth drove Omnicom's Q3 earnings beat although risks related to Brexit continue to impair its ability to increase revenues.

Higher Premiums Aid Reinsurance Group's (RGA) Earnings

Per the analyst, improving premiums will continue to boost Reinsurance Group's earnings, resulting in overall growth.

Currency Woes to Remain a Drag for IDEXX's (IDXX) Q3 Earnings

The Zacks analyst believes that with expanding international operations, IDEXX's Companion Animal Diagnostics business is likely to suffer from adverse currency fluctuations in the third quarter.

New Upgrades

Higher Refinery Utilization Continues to Drive Valero (VLO)

The Zacks analyst believes that improving throughput volume on higher refinery utilization will help Valero to generate more cash flow.

Improving Trading Activity Benefits TD Ameritrade (AMTD)

The Zacks analyst believes TD Ameritrade is poised to growth through improving trading activities as DARTs continue to rise. Moreover, increase in revenue and easing margin pressure is favorable.

New Downgrades

Gilead's (GILD) Weak HCV Franchise to Impact Growth

Per the Zacks analyst, weakness in the HCV franchise as a result of competitive and pricing pressure will impact Gilead's overall growth. The company will also lose exclusivity for HIV drug Viread.

Soft NGL Growth, Rising Peers Hit Plains All American (PAA)

Per the Zacks analyst, NGL business' weak performance forced Plains All American to lower its EBITDA outlook. Also it's facing rising competition as more companies are entering the midstream market.

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Valero Energy Corporation (VLO) : Free Stock Analysis Report
 
Sprint Corporation (S) : Free Stock Analysis Report
 
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
 
International Business Machines Corporation (IBM) : Free Stock Analysis Report
 
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
 
Celgene Corporation (CELG) : Free Stock Analysis Report
 
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