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The Zacks Analyst Blog Highlights: Novartis, McDonald's, Bristol-Myers Squibb, CME and UBS

Zacks Equity Research

For Immediate Release

Chicago, IL – January 10, 2020 – 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: Novartis NVS, McDonald's MCD, Bristol-Myers Squibb BMY, CME Group CME and UBS Group UBS.

Here are highlights from Thursday’s Analyst Blog:

Top Analyst Reports for Novartis, McDonald's and Bristol Myers

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, McDonald's and Bristol-Myers Squibb. 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 thatNovartis 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.

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.

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.

Other noteworthy reports we are featuring today include CME Group and UBS Group.

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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.

Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Bristol-Myers Squibb Company (BMY) : Free Stock Analysis Report UBS Group AG (UBS) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report CME Group Inc. (CME) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research