Top Research Reports for Amgen, BHP, Altria & Others

Monday, May 11, 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 Amgen (AMGN), BHP Group (BHP) and Altria Group (MO). 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 >>>

Amgen shares have been standout performers lately, both relative to the broader market as well as relative the peer group. This reflects growing sales momentum, according the Zacks analyst, for Amgen’s drugs like Prolia, Evenity, Repatha, Aimovig, Otezla and biosimilars will drive sales even though competition for its legacy products is steadily increasing.

Amgen beat estimates for earnings and sales in Q1. However, it expects a significant impact from coronavirus-related business disruption in Q2, which it expects will ease in the second half of 2020. Amgen boasts a strong biosimilars portfolio, which can drive long-term growth.

Amgen is also progressing with its pipeline while regularly pursuing “external opportunities” such as the acquisition of Otezla and the stake in China's BeiGene. Amgen also expects several important clinical data readouts from its innovative pipeline in 2020. However, pricing and competitive pressure are concerns.

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

These are tough times for BHP and other miners, as you can see from the stock's recent underperformance. But the critical factor for operators like BHP at this stage is the abilit to survive and it remains well positioned on that front. 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 >>>)

Altria’s shares have lost -19.1% over the past three months against the Zacks Tobacco industry’s fall of -17.4%. The Zacks analyst believes that the company has been battling weak cigarette volumes due to stern regulations and consumers’ rising health awareness.

Though reported domestic cigarette shipment volumes rose in first-quarter 2020, it was hurt by the cigarette industry’s rate of decline and retail share losses. While management withdrew its 2020 earnings view due to COVID-19-related uncertainties, it continues to expect domestic cigarette industry volumes to drop in 2020.

Nonetheless, pricing strategies and solid oral tobacco products continued aiding Altria during the quarter, wherein top and bottom lines beat the consensus mark. Management highlighted that it hasn’t seen any material disruptions from coronavirus and is focused on strengthening its cash position amid the crisis.  

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

Other noteworthy reports we are featuring today include Apple (AAPL), Zoetis (ZTS) and Target (TGT).

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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>>>

Today's Must Read

Amgen (AMGN) Key Drugs to Drive Sales Amid Coronavirus Woes

Operation Efficiency to Aid BHP Group (BHP) Amid Low Prices

Altria (MO) Troubled by Weak Cigarette Volumes, Pricing Aids

Featured Reports

Apple (AAPL) Banks on Services to Counter Coronavirus Chaos

Per the Zacks analyst, Apple is benefiting from a steady momentum in the Services segment, driven by strong App Store sales.

Dermatology Business Boost Zoetis (ZTS), Cattle Market Weak

Per the Zacks analyst, key dermatology products such as Apoquel and Cytopoint, as well as the Simparica franchise drive growth for Zoetis.

Essentials Items Lift Target's (TGT) Sales, Margin a Concern

Per the Zacks analyst, Target witnessed higher sales for Essentials and Food & Beverage categories in April month with solid contribution from digital channel.

Micron (MU) Benefits from Growing Memory-Chip Demand

Per the Zacks Analyst, Micron is growing on solid memory-chip demand from PC manufacturers and data-center operators as the coronavirus-led lockdown has boosted the work-and-learn-from-home trend.

Buyouts, Trading Focus Aid Schwab (SCHW) Amid Lower Rates

Per the Zacks analyst, strategic acquisitions and efforts to strengthen trading business will likely aid Schwab's profitability.

Las Vegas Sands (LVS) Banks on Expansion, Coronavirus Ails

Per the Zacks analyst, in the long run, Las Vegas Sands is likely to benefit from $2.2 billion investment in Macau.

Robust Sensor Unit Drives DexCom (DXCM), Higher Costs a Woe

Per the Zacks analyst, DexCom has been gaining consistently from the Sensor and Transmitter segments. However, increase in operating expenses continues to raise concern.

New Upgrades

Focus on Cargo Unit and Low Fuel Costs Boost Delta (DAL)

With passenger revenues dwindling due to the coronavirus-induced decline in air-travel demand, Delta's focus on launching cargo-only flights pleases the Zacks analyst.

Strong Demand For HCI Solutions Aids Nutanix's (NTNX) Growth

Per the Zacks Analyst, Nutanix's healthy portfolio of affordable hyperconverged products, especially its AHV hypervisor, is attracting major deal wins, boosting the top line.

Envestnet (ENV) Continues to Benefit From Technology Growth

Per the Zacks analyst, Envestnet continues to focus on technology development that helps it improve operational efficiency, increase market competitiveness, and cater to client-driven requests.

New Downgrades

Food-Cost Inflation a Worry for Sysco Corporation (SYY)

Per the Zacks analyst, higher costs in the U.S. Foodservice unit are a concern for Sysco Corporation. In third-quarter, the U.S. Foodservice unit was hurt by food-cost inflation of nearly 1.3%.

Woodward's (WWD) Industrial Segment Hit Hard by COVID-19

Per the Zacks analyst, Woodward's Industrial segment is facing headwinds stemming from weakness in oil and gas markets as well as the impact of the COVID-19 pandemic on China's natural gas trucks.

Trinity (TRN) Stung by Low Shipping Volumes and High Debts

The Zacks analyst is worried about the weak shipping volumes in Trinity's highway products operations. The company's debt load is worrisome too.

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Zoetis Inc (ZTS) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
Altria Group Inc (MO) : Free Stock Analysis Report
 
BHP Group Limited (BHP) : Free Stock Analysis Report
 
Amgen Inc (AMGN) : Free Stock Analysis Report
 
Apple Inc (AAPL) : Free Stock Analysis Report
 
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