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The Zacks Analyst Blog Highlights: Facebook, Roche, Royal Dutch Shell, Uber Technologies and Lam Research

Zacks Equity Research

For Immediate Release

Chicago, IL – April 27, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Facebook FB, Roche RHHBY, Royal Dutch Shell RDS.A, Uber Technologies UBER and Lam Research LRCX.

Here are highlights from Friday’s Analyst Blog:

Top Research Reports for Facebook, Roche and Royal Dutch Shell

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 Facebook, Roche and Royal Dutch Shell. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

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

Facebook’s shares have outperformed the S&P 500 over the past six months (-3.2% vs. -7.4%). The Zacks analyst believes that Facebook is benefiting from growth in Instagram Stories and Feed, and expanding user base in Asia Pacific.

The launch of Facebook View app, Facebook Pay, a simpler and faster Messenger for iOS app and more location control feature for Android users is a positive. However, Facebook expects ad-sales to be hurt by the coronavirus lockdowns despite a significant spike in traffic.

Moreover, increasing limitations in tracking user activity amid the growing privacy-related regulations and changes made in the mobile operating systems and browser platforms by Apple and Google as well as tools like the Off Facebook Activity controls are expected to affect top-line growth. Moreover, a persistent mix shift toward Stories is anticipated to weigh on ARPU.

Shares of Roche have gained +37.7% over the past year against the Zacks Large Cap Pharmaceuticals industry’s rise of +12%. The Zacks analyst believes that the Spark acquisition will boost Roche’s presence in the gene therapy space.

Roche’s performance in the first quarter was impressive as strong growth in Ocrevus, Perjeta, Tecentriq and Hemlibra countered biosimilar competition for Herceptin, MabThera and Avastin. Label expansion of Tecentriq into additional indications is a positive.

Roche is evaluating its RD drug, Actemra, for the treatment of COVID-19 and a positive outcome will be a great boost. However, most of the legacy drugs are facing biosimilar competition. While the company ensured that the global supply chain for medicines and tests remain intact, the COVID-19 outbreak will affect performance, going forward.

Royal Dutch Shell’s shares have lost -37.8% over the past three months against the Zacks International Integrated Oil industry’s fall of -33.7%. The Zacks analyst believes that Shell's reserve replacement ratio of just 76% indicates its inability to add proved reserves to its reserve base.

In response to the oil crash, Royal Dutch Shell plans to trim its 2020 capex by a minimum of $5 billion from the past projection, which should enhance Shell's free cash flow generation. Moreover, Shell boasts of an attractive dividend yield of more than 8.5% that appears safe and reliable. Further, Shell’s position as a major supplier of LNG should help the company meet the fuel’s growing demand and help cash flow to improve.

Meanwhile, a supply glut combined with coronavirus-induced demand destruction has sent oil crashing and considerably weakened Shell's profile, even forcing it to halt its buyback program. Considering these arguments, the stock - down 40% year to date - warrants a cautious stance.

Other noteworthy reports we are featuring today include Uber Technologies and Lam Research.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Sheraz Mian
Director of Research

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>>>

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Zacks Investment Research

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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Roche Holding AG (RHHBY) : Free Stock Analysis Report
 
Lam Research Corporation (LRCX) : Free Stock Analysis Report
 
Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
 
Facebook, Inc. (FB) : Free Stock Analysis Report
 
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
 
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