Top Stock Reports for Amgen, Altria & Booking Holdings

Monday, May 13, 2019

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), Altria (MO) and Booking Holdings (BKNG). 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’s shares have lost -2.4% over the past year, outperforming the Zacks Biomedical and Genetics industry's decline of -16.5%. Amgen beat expectations for earnings while sales were in line with estimates in the first quarter.

The Zacks analyst thinks that while Amgen’s newer drugs — Prolia, Xgeva, Blincyto, Kyprolis — will drive sales, biosimilar and brand competition for its legacy products will create pressure on sales in 2019. Meanwhile, the uptake of key drug Repatha has been slow due to payer restrictions. However, recently launched products including Aimovig, biosimilars and international expansion provide incremental growth opportunities.

Amgen is also progressing with its pipeline and the approval of Evenity was a boost. In the past five years, Amgen has launched nine products, including two in new therapeutic areas. The company boasts a strong biosimilars pipeline, which could be an important long-term growth driver for the company. Amgen’s restructuring plan is making it leaner and more cost efficient.

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

Shares of Altria have gained +6.1% over the past three months, outperforming the Zacks Tobacco industry, which has increased +4.1% over the same period. The Zacks analyst thinks the company is steadily gaining from the popularity of Smokeless products. During first-quarter 2019, revenues in the category improved nearly 2.9%.

To further bolster this unit, the company has made investments in JUUL and Cronos. Pricing also continues to drive the company’s revenues. It has also undertaken cost-reduction initiatives. Altria plans to deliver annualized cost savings of nearly $575 million by the end of 2019. Management expects such savings to mitigate the interest burden, stemming from debt issued to fund investments.

Further, we note that Altria grapples with persistently declining cigarette shipment volumes. Stern FDA regulations, along with increased health consciousness, are taking a toll on cigarette sales. Going forward, management expects cigarette industry volume to decline in the range of 4-5%.

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

Booking Holdings’ shares have underperformed the Zacks Internet Commerce industry over the past year, losing -11.7% vs. -3.6%. Booking Holdings reported weak first quarter results wherein both earnings and revenues missed the estimates.

However, the company’s total bookings continued to accelerate during the reported quarter, thanks to its rapidly growing Merchant bookings. Robust portfolio of properties remained a major positive which drove growth in room nights booked number of the company. Also, its strong direct channel, rising mobile share and growing alternative accommodation business contributed well.

The Zacks analyst thinks its strong focus toward enhancing offerings of places to stay to customers will aid growth in the near term as well as the long haul. Moreover, its growing branding initiatives remain tailwinds. However, currency headwinds and increasing advertising spend remain overhangs. Sluggishness in the rental car days and airline tickets unit poses a risk.

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

Other noteworthy reports we are featuring today include Enterprise Products Partners (EPD), General Motors (GM) and Occidental Petroleum (OXY).

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

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

Amgen (AMGN) Counts on New Drugs Amid Rising Biosimilar Woes

Pricing & Smokeless Unit Aids Altria (MO), Cigarettes a Woe

Booking Holdings (BKNG) Rides on Gross Bookings Amid Risks

Featured Reports

Enterprise (EPD) Banks on Midstream Growth Projects

The Zacks analyst thinks Enterprise's $5-billion pipeline of fee-oriented midstream projects, under construction, positions it well to enjoy above-average growth in distributable cash flow.

General Motors (GM) Rides on Pick-Up Trucks & Better Pricing

Per the Zacks analyst, strong sales of 2019 Chevrolet Silverado and GMC Sierra light-duty crew cabs and their better transaction price are driving General Motors.

Anadarko Acquisition, Permian Focus to Aid Occidental (OXY)

Per Zacks analyst, Occidental's decision to acquire Anadarko Petroleum will expand its operations in resource rich Permian Basin. Focus on high-margin region will boost its performance.

Loan Growth Aids SunTrust (STI), Mortgage Operations a Worry

Per the Zacks analyst, loan growth along with higher rates will likely further aid SunTrust's revenues.

Electronic Arts' (EA) Benefits From Solid Game Portfolio

Per the Zacks analyst, EA's active player accounts base witnessed growth owing to new game releases, increased engagement in popular franchises including FIFA and live services growth.

Debt Cuts, Growth Projects to Aid Newmont Goldcorp (NEM)

The Zacks analyst is impressed with Newmont Goldcorp's efforts to reduce debt and improve efficiency.

Investments in Infrastructure to Aid PPL Corp. (PPL)

Per the Zacks analyst, PPL Corporation will gain from capital investment plans that primarily focus on infrastructure construction projects.

New Upgrades

Passenger Revenues, Dividends, Buybacks Aid Delta (DAL)

The Zacks analyst likes the company's efforts to reward shareholders. The increase in passenger revenues mainly due to the strong demand for air travel is also encouraging.

Robust Investment Pipeline to Aid Realty Income's (O) Growth

Per the Zacks analyst, Realty Income will gain from solid domestic investments, international expansion and focus on service, non-discretionary and low-price retail business tenants.

Growing Medical Arm, New Buys Boost Henry Schein (HSIC)

The Zacks analyst is bullish about robust performance of Henry Schein's Medical arm on solid organic growth. The North American Rescue buyout should strengthen this business further.

New Downgrades

Softness in Semiconductor Space Hurts Advanced Energy (AEIS)

Per the Zacks analyst, changing ordering patterns by customers in semiconductor market and lower fab utilization due to macro headwinds in China are impacting Advanced Energy negatively.

3D Systems (DDD) Battered by Price Mix, Shipment Issues

Per the Zacks analyst, growing demand for lower-priced products is denting 3D System's top line. Further, halt in shipments of metal printers due to a technical glitch is a deterrent to sales.

Falling Vehicle Production & High Costs Hurt Tenneco (TEN)

Per the Zacks analyst, declining light-vehicle production in China owing to market softness is hampering Tenenco's sales.

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Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
 
Altria Group, Inc. (MO) : Free Stock Analysis Report
 
General Motors Company (GM) : Free Stock Analysis Report
 
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
 
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
 
Amgen Inc. (AMGN) : Free Stock Analysis Report
 
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