Top Research Reports for Bank of America, Celgene & Goldman Sachs

Friday, December 8, 2017

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 Bank of America (BAC), Celgene (CELG) and Goldman Sachs (GS). 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 >>>

Bank of America’s shares have outperformed the Zacks Major Regional Banks industry over the last six months, gaining +21.6% vs. +14.3%. This price performance is backed by impressive earnings surprise history as the company surpassed expectations in each of the trailing four quarters. Rising interest rates, increase in loan and deposit balances along with initiatives to strengthen its balance sheet is expected to continue supporting profitability.

The bank’s efforts to streamline and simplify operations will support its overall growth and even improve its capital deployment activities. However, muted fee income growth remains a key concern. Fall in mortgage banking income due to lower volumes and a decline in refinancing activity along with uncertainty related to performance of capital markets make the Zacks analyst apprehensive. In fact, trading revenues are expected to decline in the fourth quarter 2017.

(You can read the full research report on Bank of America here >>>).

Shares of Celgene have underperformed the Zacks Biomedical and Genetics over the last three months, losing -27.1% vs. a decline of -12.6%. Celgene’s third-quarter results were mixed with the company beating on earnings but missing on sales estimates. While Revlimid sales were impressive yet again, Otezla sales in the United States were weak due to challenges in the dermatology market which led the management to cut guidance.

Celgene’s Revlimid continue to outperform driven by further market share increases in newly diagnosed myeloma and the continued increase in treatment duration. Pomalyst and Abraxane also performed well. The Zacks analyst likes Celgene’s label expansion efforts and pipeline development with sNDA submission for Revlimid in newly diagnosed multiple myeloma targeted for first-quarter 2018.

The approval of Idhifa for relapsed and/or refractory acute myeloid leukemia has further boosted the company’s portfolio. However, Celgene is highly dependent on Revlimid while Abraxane sales are under competitive pressure. Weakness in Otezla will persist.

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

Goldman Sachs’ shares have gained +11.7% over the six months, underperforming the +17.9% gain of the Zacks Investment Bank industry. Yet, the company boasts an impressive earnings surprise history. It has surpassed estimates for earnings in three of the trailing four quarters.

Though several issues, including sluggish global economic growth and lower client activity levels, remain near-to-medium-term headwinds, the Zacks analyst thinks the company’s well-diversified business and its focus to capitalize on growth opportunities through strategic moves should continue to bolster the overall business. Further, cost control measures are commendable. Additionally, steady capital deployment activities have boosted investors' confidence.

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

Other noteworthy reports we are featuring today include Cummins (CMI), L Brands (LB) and Quest Diagnostics (DGX).

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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

Interest Income Aids BofA (BAC), Trading Income a Concern

Celgene (CELG) Boasts Strong Pipeline, Competition Stiff

Goldman (GS) Exhibits Cost Control; Legal Issues Linger

Featured Reports

Newfield (NFX) Banks on Oil-Rich Anadarko Basin, Debts High

Newfield's strong focus on crude shale plays in the Anadarko Basin will drive oil production. However, excessive reliance on debt will hurt the firm, per the Zacks analyst.

Partnerships, Transition to New Standards Aid Cummins (CMI)

Per the Zacks analyst, the partnership with GILLIG for combining and modifying new battery electric technology and transition to new emission standards in various economies will boost Cummins' sales.

L Brands (LB) Focuses on Cost Containment to Cushion Margins

Per the Zacks analyst, L Brands' margins have been under pressure for quite some time now.

Groupon+ Offering, GrubHub Partnership Drives Groupon (GRPN)

Per the Zacks analyst, Groupon is benefiting from its new offering Groupon+. Moreover, its partnership with Grubhub and ongoing brand awareness programs will boost top-line growth.

Expanding Digital Platform Buoys Western Union (WU)

Per the Zacks analyst, revenues from the digital platform are increasing led by investment in its technology offerings, which are needed to stay ahead of technological advancements in the industry.

Quest (DGX) Banks on Strategic Tie-ups, Hurricanes Hit Sales

Per the Zacks analyst, Quest Diagnostics is gaining on new tie-ups with hospitals and integrated delivery networks.

Dave & Buster's (PLAY) Rides on Gaming; Higher Cost Hurts

The Zacks analyst thinks that increased focus on the gaming and entertainment segment is driving growth for Dave & Buster's amid a challenging U.S. restaurant space, plagued with high costs.

New Upgrades

RH's (RH) Shift to Membership Business Model Bodes Well

The Zacks analyst stresses that RH's shift from a promotional to a membership business model has enhanced customer experience, increased brand value, improved operational execution and reduced costs.

Solid Fluid Power Business Benefits Applied Industrial (AIT)

Per the Zacks analyst, Applied Industrial will gain from solid demand for fluid power products and services. Buyout of Sentinel Fluid Controls in March has increased the appeal of this business.

John Wiley's (JW.A) Research Unit Continues to Aid Top Line

Per the Zacks analyst, John Wiley & Sons, which is metamorphosing in to a digital-service oriented company, continues to gain from recent buyouts and robust performance of iits Research division.

New Downgrades

Cyber Attack Susceptibility Hinders H&R Block (HRB) Operations

Per the Zacks analyst, susceptibility to cyber attacks to obtain personal client information remains one of the major concerns of H&R Block as protective measures are increasing its operating costs.

Perrigo's (PRGO) Rx Segment's Sales Hurt by Generic Pressure

Per the Zacks analyst, generic and pricing pressures in the U.S. businesses, particularly in the Rx segment, coupled with competition in the sector, may hurt the company's sales in the near term.

Jack in the Box (JACK) Affected by Qdoba's Declining Comps

Per the Zacks analyst, persisting lower comps at Jack in the Box's Qdoba brand is hurting the company's overall sales amid an already challenging restaurant environment.

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L Brands, Inc. (LB) : Free Stock Analysis Report
 
Goldman Sachs Group, Inc. (The) (GS) : Free Stock Analysis Report
 
Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report
 
Cummins Inc. (CMI) : Free Stock Analysis Report
 
Celgene Corporation (CELG) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
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