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Top Analyst Reports for Novartis, McDonald's & Bristol-Myers Squibb

Sheraz Mian

Thursday, January 9, 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 Novartis (NVS), McDonald's (MCD) and Bristol-Myers Squibb (BMY). 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 >>>

The Zacks analyst believes that Novartis performance in the past year has been stellar on key drugs like Cosentyx and Entresto, contribution from Zolgensma, and the Xiidra acquisition.

The impending acquisition of The Medicines Company should broaden its portfolio. New launches like Piqray and Beovu should further boost performance in the upcoming quarters. However, price erosion in the United States has adversely impacted the generic business.

Recently, Novartis has restructured its business and spun off the eye-care unit, Alcon, to become a core drug-focused company. However, pipeline setbacks and generic competition for key drugs are concerning.

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

Shares of McDonald's have lost -2.8% in the past three months against the Zacks Restaurants industry's fall of -0.3%. The Zacks analyst believes that this weakness is attributable to lower-than-expected earnings in the preceding three quarters.

Furthermore, earnings estimate for current and next year have witnessed downward revisions of late. High labor costs and currency headwinds are added concerns. Its heightened focus on refranchising might cut capital requirements and facilitate EPS growth. However, various sales and digital initiatives as well as positive comps bode well.

The company’s increased focus on delivery and accelerated deployment of EOTF restaurants in the United States are commendable. McDonald’s has been regularly rewarding its shareholders through share repurchases and dividends. Additionally, the company is making efforts to drive growth in international markets.

(You can read the full research report on McDonald's here >>>)

Bristol-Myers Squibb's shares have gained +39% over the past six months against the Zacks Large Cap Pharmaceuticals industry's rise of +8%. The Zacks analyst believes that Bristol-Myers’ lead immuno-oncology drug, Opdivo, continues to drive growth.

Label expansion of the drug into additional indications should further boost the top line. Empliciti and Sprycel are also performing well on label expansion. Moreover, Bristol-Myers has presence in other core therapeutic areas, including immunoscience and cardiovascular. Blood thinner drug, Eliquis, is expected to drive growth, propelled by increased share in the NOAC market.

Meanwhile, the acquisition of Celgene Corporation should broaden the company’s oncology portfolio with the addition of blockbuster drug, Revlimid. However, concerns will rise once the drug 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 Squibb here >>>)

Other noteworthy reports we are featuring today include CME Group (CME), Chubb (CB) and UBS Group (UBS).

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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

Cosentyx, Entresto, Fuel Novartis (NVS), Sandoz Weak


McDonald's (MCD) Sales Initiatives Bode well, High Costs Ail


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


Featured Reports

CME Group (CME) Rides on Futures Products, Expenses High

Per the Zacks analyst, expansion of futures products in emerging markets and OTC offerings poise the company well for growth. However, higher expenses weigh on margins.

Chubb (CB) Banks on Acquisitions, Cat Loss an Overhang

Per the Zacks analyst, buyouts have helped Chubb in domestic as well as international expansion and boosted the portfolio of products and services.

UBS Group (UBS) Exhibits Cost Control, Low Rates a Concern

Per the Zacks analyst, UBS Group's cost saving measures to drive operational efficiency are encouraging.

Growth in Famous Franchises, E-Sports Aids Activision (ATVI)

Per the Zacks analyst, Activision's foray into e-sports and user base expansion from strength in popular franchises bodes well for its growth prospects.

Workday (WDAY) Gains from HCM Capabilities & Cloud Platforms

Per the Zacks analyst, Workday's revenue growth continues to be driven by high demand for its HCM and financial management solutions.

Square (SQ) Banks on Strong Product Lines Amid Competition

Per the Zacks analyst, well performing Square Register, Build with Square and API platforms continue to aid growth in Square's gross payment volume.

Abercrombie's (ANF) Transformation Efforts to Drive Sales

Per the Zacks analyst, Abercrombie is well on track with its transformation initiatives like launch of expanded payment options and rebranding of loyalty program.

New Upgrades

Strong Global Segment to Drive Lamb Weston's (LW) Top Line

Better price/mix and higher volumes have been aiding sales at Lamb Weston's Global segment for a while now. Per the Zacks analyst, strength in this unit remains a tailwind for top line in fiscal 2020.

Systematic Acquisition to Aid MDU Resources' (MDU) Business

Per the Zacks analyst, MDU Resources' consistent and disciplined approach to the acquisition of well-managed companies and properties is expected to drive performance.

Emergent's (EBS) Strong Vaccine Portfolio to Fuel Growth

Per the Zacks analyst, Emergent's vaccine portfolio holds potential as newly-acquired products are making good progress.

New Downgrades

Weak US Oilfield Service Demand Hurts Schlumberger (SLB)

Conservative capital spending program by drillers in the United States will continue to hurt Schlumberger's domestic oilfield service demand, per the Zacks analyst.

Uncertainties, Acquisition Delays Hurts Spirit Aero

Per the Zacks analyst, uncertainties revolving around Boeing's 737 Max aircraft may hamper the stock's growth. Further, prolonged delays in Asco acquisition may further escalate its costs.

Escalating Raw Material Costs to Hurt WABCO's (WBC) Margins

Per the Zacks Analyst, rising operational inefficiencies and high raw materials costs along with increasing labor expenses are clipping the firm's margins and the trend is likely to continue.


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UBS Group AG (UBS) : Free Stock Analysis Report

Novartis AG (NVS) : Free Stock Analysis Report

McDonald's Corporation (MCD) : Free Stock Analysis Report

CME Group Inc. (CME) : Free Stock Analysis Report

Chubb Limited (CB) : Free Stock Analysis Report

Bristol-Myers Squibb Company (BMY) : Free Stock Analysis Report

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