Top Research Reports for Abbott, Gilead & FedEx

Friday, September 7, 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 Abbott (ABT), Gilead (GILD) and FedEx (FDX). 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 >>>

Abbott’s shares have gained +26.5% over the past year, outperforming the Zacks Medical Products industry, which has gained +18.7% over the same period. The Zacks analyst likes the strong and consistent performance across all segments by Abbott in the last reported quarter. 

Within Structural Heart, worldwide strong uptake of MitraClip therapy improves further following the recent FDA approval of its next-generation version. This apart, synergies from Alere consolidation in the form of revenues from Rapid Diagnostics have been driving growth.

Meanwhile, emerging market performance has been extremely promising. The company has been hogging the limelight within Diabetic Care on progress with its FreeStyle Libre. On the flip side, sluggish Vascular business continues to dent growth. However, the FDA approval for XIENCE Sierra coronary stent system as well as a reimbursement approval in Japan should help Abbott to revive the dull Vascular business.

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

Shares of Strong Buy-ranked Gilead have outperformed the Zacks Biotech industry year to date, gaining +1.7% vs. a decline of -4.9%. The Zacks analyst thinks Gilead’s HIV franchise maintains momentum driven by the rapid adoption of Descovy-based regimens.

The FDA approval of Biktarvy has further widened the portfolio. Biktarvy has also been approved in Europe which should boost sales further. The launch of Yescarta is progressing well in the United States and the approval in Europe will further boost sales.

Meanwhile, Gilead is intending to foray into the nonalcoholic steatohepatitis (NASH) and inflammation market with late-stage candidates, selonsertib and filgotinib, respectively. A tentative approval will diversify Gilead’s portfolio. However, Gilead’s HCV franchise is under pressure due to competitive and pricing pressure. The departure of the CEO at this crucial time further clouds the growth prospects of the company.

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

FedEx’s shares have outperformed the Zacks Air Freight and Cargo industry (+16.9% vs. +10.2%) and rival United Parcel Service (+7.6%) in the past year. The Zacks analyst thinks a buoyant U.S. economy and e-commerce growth has been aiding the company.

Additionally, higher shipping rates and volume growth are huge positives for FedEx. Meanwhile, lower tax rates are boosting the company’s bottom-line performance. FedEx’s decision to reward its shareholders through dividend payments and share buybacks is impressive. However, high costs are hurting the bottom line.

Significant investments at the company's key divisions are pushing up costs as well. Capital expenses are estimated at $5.6 billion for fiscal 2019. Trade-war related fears are also weighing on FedEx.

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

Other noteworthy reports we are featuring today include Archer Daniels (ADM), Omnicom (OMC) and CBRE Group (CBRE).

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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

Abbott (ABT) to Boost Dull Vascular Arm with Xience Sierra

HIV Franchise, Yescarta Drive Growth for Gilead (GILD)

E-Commerce, Dividends & Buybacks Aid FedEx (FDX), Costs Ail

Featured Reports

Archer Daniels' (ADM) Cost Savings Initiatives to Aid Growth

Per the Zacks analyst, a key component of Archer Daniels' long-term strategy is strengthening business through cost savings. It is on track to exceed its targeted savings of $200 million for 2018.

CBRE Group (CBRE) to Ride High With Strategic Acquisitions

Per the Zacks analyst, CBRE Group will ride high on strategic buyouts that expand and reinforce service offerings and enhance geographic reach. Improving occupier outsourcing business augurs well.

Strong Aircraft Demand Buoys Air Lease (AL) Amid Cost Woes

With aircraft demand and passenger traffic remaining strong, the Zacks analyst is positive on the company's growth prospects.

Infrastructure Plans to Aid Hawaiian (HE), Oil Prices to Hurt

Per the Zacks analyst, Hawaiian continues to make systematic investments in development and replacing aging infrastructure.

Shutterfly's (SFLY) Top Line to Gain From Lifetouch Buyout

Per the Zacks analyst, Shutterfly's buyout of Lifetouch will continue to drive the company's top-line.

Transformation Plan & Debt Reduction to Aid NRG Energy (NRG)

Per the Zacks analyst, NRG Energy's Transformation Plan continues to help in cost savings and debt reduction, ultimately boosting performance of the company.

Gap's (GPS) Solid Omni-channel Endeavors to Drive Sales

Per the Zacks analyst, Gap is enhancing its e-commerce and omni-channel capabilities through a number of initiatives.

New Upgrades

Divestiture, Cost Savings to Aid Envision Healthcare (EVHC)

Per the Zacks analyst, margins will gain from reduced expenses, efficient revenue cycle management and effective labor cost management. Divestiture of AMR business will help to focus on core business.

Higher Demand, Acquisitions Aid Platform Specialty (PAH)

The Zacks analyst thinks the company should gain from higher demand for its electronics solutions portfolio. Its focus on expanding global footprint through acquisitions should also drive growth.

Inovio's (INO) Early/Mid Stage Pipeline Exhibits Growth

Per the Zacks analyst, Inovio's portfolio of early/mid stage pipeline has been progressing well and its collaboration with big pharma companies exhibits strong growth.

New Downgrades

Unfavorable Weather, Rising Costs & Debt to Hurt Cosan (CZZ)

Per the Zacks analyst, Cosan's results will bear the brunt of rising costs of sales and services, lower sugarcane production due to dry weather as well as high debt levels.

Omnicom (OMC) Hurt by Client Losses, Foreign Currency Risk

The Zacks analyst is worried about the loss of clients at Omnicom, as it weighs on the company's North America revenues. Global presence exposes it to foreign exchange rate risks.

Amdocs (DOX) Hurt by AT&T Slowdown, Currency Volatility

Per the Zacks analyst, decline in spending by Amdocs' largest client, AT&T is affecting the company. Moreover, its high exposure to foreign currency exchange rate risk is an overhang on the top line.

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Omnicom Group Inc. (OMC) : Free Stock Analysis Report
 
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
 
FedEx Corporation (FDX) : Free Stock Analysis Report
 
CBRE Group, Inc. (CBRE) : Free Stock Analysis Report
 
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
 
Abbott Laboratories (ABT) : Free Stock Analysis Report
 
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