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Top Research Reports for Bristol-Myers, BHP & CVS

Mark Vickery

Monday, March 23, 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 Bristol-Myers Squibb (BMY), BHP Group (BHP) and CVS Health (CVS). 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 >>>

Bristol-Myers’ shares have outperformed the Zacks Large Cap Pharmaceuticals over the past six months (-3.2% vs. -11.9%). The Zacks analyst believes that Bristol-Myers’ blockbuster immuno-oncology drug, Opdivo, and Eliquis have maintained the company’s momentum. Label expansion of Opdivo into additional indications should further boost the top line.

Empliciti and Sprycel are also performing well on label expansions. Blood thinner drug, Eliquis, is expected to drive further growth, propelled by increased share in the NOAC market. Meanwhile, the acquisition of Celgene has strengthened the company’s oncology portfolio with the addition Revlimid.

The acquisition will also strengthen the company’s pipeline with encouraging candidates. However, concerns will rise once Revlimid loses patent protection. Moreover, the company is facing headwinds like stiff competition from other immuno-oncology drugs and pipeline setbacks.

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

Shares of BHP have lost 40.3% over the past year against the Zacks Mining - Miscellaneous industry’s fall of 38.7%. The Zacks analyst believes that BHP Group’s strong cash flow and focus on lowering debt are likely to enhance its capability.

The company maintains capital and exploration expenditure guidance below $8 billion for fiscal 2020 and $8 billion for fiscal 2021. It currently has six major projects under development in petroleum, copper, iron ore and potash. Efforts to make operations more efficient on the back of smarter technology adoption across the entire value chain will drive growth.

However, slowdown in global growth and lower commodity prices due to the coronavirus outbreak is likely to impact results. The consensus estimate for earnings for the current fiscal has undergone negative revision lately. Nevertheless, even though metal prices remain subdued in the near term, it will eventually pick up on the back of the impending demand-supply imbalance.

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

CVS Health’s shares have lost 26.6% over the past three months against the Zacks Retail Pharmacies and Drug Stores industry’s fall of 25.1%. The Zacks analyst believes that the company’s recently-introduced Health Care Benefits segment, following the Aetna acquisition, holds immense promise.

Additionally, solid year-over-year Retail/LTC comparisons were impressive. Strong expansion of both margins further buoys optimism on the stock. The expansions of MinuteClinics and HealthHUBs during the quarter are also encouraging. CVS Health ended the fourth quarter with better-than-expected numbers. However, the LTC business is facing some industry-wide challenges. Reimbursement risk continues to be a dampener.

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

Other noteworthy reports we are featuring today include T-Mobile US (TMUS), Southern (SO) and Anthem (ANTM).

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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

Opdivo, Eliquis Fuel Bristol-Myers (BMY) Amid Competition

Operational Efficiency Aid BHP Group (BHP), Low Prices Ail

Strength in the Pharmacy Services Aids CVS Health (CVS)

Featured Reports

T-Mobile (TMUS) Rides on Sprint Deal, Network Expansion

Per the Zacks analyst, T-Mobile is poised to benefit from the merger with Sprint, while it continues to deploy 600 MHz spectrum.

Southern (SO) Buoyed by Customer Growth, Vogtle Costs Hurt

The Zacks analyst believes that steady increase in Southern Company's regulated business customer base should support its revenues.

Increasing Membership Aids, High Costs Hurt Anthem (ANTM)

Per the Zacks analyst, the company has been gaining traction from its rise in Medical membership over the past few quarters.

da Vinci System Aids Intuitive (ISRG) Amid Stiff Competition

Strong prospect in Intutive Surgical's robotic platform - da Vinci System - is a positive. However, the Zacks analyst is apprehensive about cutthroat competition in the MedTech space.

Acquisitions Aid Mitsubishi UFJ (MUFG), High Expenses A Woe

Per the Zacks analyst, Mitsubishi UFJ has been growing through acquisitions and focus on its business upgradation plan (2018-2021).

Infosys (INFY) Rides on Digital Transformation, AI Proliferation

Per the Zacks analyst, Infosys is benefiting from higher investments by clients in digital transformation, AI, automation and large deal wins.

BMS Solutions Aid Analog Devices (ADI) Amid Weak Automotive

Per the Zacks analyst, Analog Devices is benefiting from strengthening momentum of Battery Management System solutions in electric vehicles.

New Upgrades

Moderna's (MRNA) Coronavirus Vaccine Development Encouraging

Per the Zacks analyst, Moderna's recent foray into development of mRNA-based vaccine for coronavirus infection, COVID-19, and rapid progress with it is boosting the company's prospects.

Solid Demand, Innovations Benefit Enphase Energy (ENPH)

Per the Zacks analyst, Enphase's microinverters are enjoying solid demand with rising solar rooftop installations. It can capture larger shares of the booming solar market with its latest innovations.

Investments, Housing Price Hike Aid Hawaiian Electric (HE)

Per the Zacks analyst, Hawaiian Electric's systematic investments in utility infrastructure development help it to meet increasing consumer demand.

New Downgrades

Weak Downstream & Upstream Businesses Hurt ExxonMobil (XOM)

The Zacks analyst is concerned about contraction in fuel margins, which continues to hurt ExxonMobil's downstream business. Moreover, soft energy demand hurts the firm's upstream operation.

BP to be Hurt by Lower Refining Margin and Huge Debt Burden

The Zacks analyst expects lower refining margins to affect BP's profit levels. Moreover, massive debt is likely to constraint its financial flexibility.

Increasing Expenses to Hurt BlackRock's (BLK) Profitability

Per the Zacks analyst, BlackRock's restructuring efforts to modify the size and shape of its workforce will likely lead to higher expenses. Thus, elevated costs are expected to hurt the bottom line.

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T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
Southern Company (The) (SO) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
Bristol-Myers Squibb Company (BMY) : Free Stock Analysis Report
BHP Group Limited (BHP) : Free Stock Analysis Report
Anthem, Inc. (ANTM) : Free Stock Analysis Report
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