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The Zacks Analyst Blog Highlights: Booking, Allergan, Honda Motor, Infosys and Activision Blizzard

Zacks Equity Research

For Immediate Release

Chicago, IL –November 13, 2019 – 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: Booking Holdings BKNG, Allergan AGN, Honda Motor Co. HMC, Infosys INFY and Activision Blizzard ATVI.

Here are highlights from Tuesday’s Analyst Blog:

Top Stock Reports for Booking, Allergan and Honda Motor Co.

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 Booking Holdings, Allergan and Honda Motor Co. 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 >>>

Booking Holdings’ shares have underperformed the Zacks Internet Commerce industry year to date (10.1% vs. 20.4%). The Zacks analyst believes that a secular growth trend in the online travel booking market and growing mobile usage penetration are tailwinds.

Booking Holdings reported third-quarter results, wherein both earnings and revenues have grown year over year on the back of improving gross bookings. Moreover, solid growth in the booked room nights and strong momentum across global accommodation space contributed well. Also, strong efforts toward ramping up of merchant business drove the top-line growth further.

Moreover, the company’s strong position in international markets and growth opportunities in the domestic market are major positives. However, continued softness in agency business of the company remains a headwind. Further, macro headwinds and increasing advertising spend are concerns.

Shares of Allergan have gained 34.5% in the past six months against Zacks Generic Drugs industry’s rise of 4.7%. The Zacks analyst believes that Allergan’s key products like Botox and new products such as Viberzi and Vraylar support sales.

Allergan also continues to deliver on its R&D pipeline with some major product launches expected over the next couple of years. Biosimilars also represent significant opportunity. The acquisition by AbbVie could prove to be rewarding for Allergan’s shareholders. Allergan’s stock has outperformed the industry this year so far. 

However, in 2019, sales are being hurt by loss of exclusivity of key drugs, product recalls, pricing pressure and currency headwinds. Its blockbuster eye drug, Restasis, is also expected to face generic competition this year. Meanwhile, new competition for key growth drivers, Botox, Restasis and Linzess, is a concern.

Honda Motor’s shares have gained 23.1% over the past three months against the Zacks Foreign Automotive industry’s rise of 15.3%. The Zacks analyst believes that focus on the development of EVs and self-driving cars bodes well for the company, given the changing circumstances in the automobile industry.

The firm’s frequent collaborations with companies like General Motors and Hitachi, among others, are expected to expand business and bolster prospects. Its healthy balance sheet, improving cash flows and investor-friendly moves are other positives.

However, in anticipation of a slowdown in India and North America, along with a stronger yen, the company has narrowed sales and profit forecast for fiscal 2020. Further, high capex to develop advanced technologies may also limit its cash flows. Frequent recalls also remain a concern. As such, investors are recommended to wait for a better entry point.

Other noteworthy reports we are featuring today include Infosys and Activision Blizzard.

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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/performance for information about the performance numbers displayed in this press release.


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Allergan plc (AGN) : Free Stock Analysis Report
 
Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
 
Infosys Limited (INFY) : Free Stock Analysis Report
 
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
 
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
 
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