Friday, May 19, 2017

The Zacks Research Daily presents the best research output of our analyst team. Today’s publication features new research reports on 16 major stocks, including Bristol-Myers (BMY), Priceline (PCLN) and Phillips 66 (PSX).

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 >>>

Bristol-Myers shares have underperformed the broader market as well as the large cap pharma group this year, losing -8% in the year-to-date period, on persistent concerns about generic competition for several of its key products, particularly the HCV franchise. These headwinds notwithstanding, the Zacks analyst likes the company’s improving operating outlook as reflected in management’s raised guidance at the time of the Q1 earnings release. Bristol-Myers’ key products should continue to fuel top line growth. Meanwhile, Bristol-Myers is working on expanding the Opdivo label which should boost results as well. With the FDA approving Merck’s Keytruda, for the first-line treatment of metastatic nonsquamous NSCLC, the company is expected to see further loss of market share. (You can read the full research report on Bristol-Myers here >>>)

Priceline shares performed in-line with the Zacks ecommerce industry over the last one year, gaining +43.7% vs. +44.3% and outperforming the broader Technology sector as well as the S&P 500 index. The stock has lost ground following the May 9^th quarterly release when it beat on EPS and essentially in-line revenues, but offered a subdued outlook for the current period and beyond. The soft guidance notwithstanding, the Zacks analyst likes Priceline’s strong position in international markets, good execution, prudent marketing strategy and strong financial position. The secular growth trend in the online travel booking market and growth opportunities in the domestic market are other positives. On the flip side, weaker average daily room rates, macro headwinds, increasing advertising spend and occupancy tax-related litigation remain overhangs. (You can read the full research report on Priceline here >>>)

Phillips 66 shares have done better than the Zacks oil refining & marketing industry, but they have lagged the Zacks Energy sector (the stock is down -9.4% vs. -12.4% for the industry and -8% for the Zacks Energy sector). The company’s above peer group performance this year reflects the size, efficiency and strength of each of its operations. The company is on track to fortify its position in every business segment by streamlining its asset portfolio and investing in growth opportunities. The Zacks analyst likes Phillips 66’s intention to allocate money for higher margin business units like Midstream and Chemicals instead of extensive refining and marketing operations. During first-quarter 2017, the company posted better-than-expected results following higher margins from the Refining and Chemicals businesses. However, the company’s bottom line deteriorated year-over-year owing to reduced volumes from turnaround activities and increased expenses. (You can read the full research report on Phillips 66 here >>>)

Other noteworthy reports we are featuring today include PG&E Corp. (PCG), Newell Brands (NWL) and Autodesk (ADSK).

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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

Bristol-Myers (BMY) Q1 Results Solid, Opdivo Faces Pressure

Priceline (PCLN) Q1 Earnings Shine, Revenues Miss

Phillips 66 (PSX) Q1 Earnings Beat Estimates, Fall Y/Y

Featured Reports

PG&E Corp. (PCG) Tops Q1 Earnings, Sales; Keeps EPS View

The Zacks analyst thinks a stable liquidity position and meaningful investments helped PG&E Corp. to generate better-than-expected result in Q1.

Autodesk (ADSK) Q1 Loss Wider Than Expected, Revenues Beat

The covering analyst thinks Autodesk's business transition from licenses to cloud-based services is expected to benefit it in the long run.

Newell Brands (NWL) Tops Q1 Earnings and Sales, Ups EPS View

The Zacks analyst thinks Newell looks good backed by its surprise trend for almost seven years and a raised earnings view for 2017.

Southern Company's (SO) Q1 Retail Sales Fall, Costs Rise

The covering analyst is pessimistic about the costs and leverage of the Southern Company which may deteriorate further due to its Kemper and Vogtle projects which are facing delays and cost overruns.

ArcelorMittal (MT) Swings to Profit in Q1, Earnings Top

The Zacks analyst is encouraged by its actions to cut debt & costs and expand capacity, which should lead to better operational performance.

Alleghany Corporation (Y) Misses Q1 Earnings Estimates

Alleghany's first-quarter 2017 earnings missed expectations and declined year over year. The decline can be attributed to lower net premiums.

Host Hotels (HST) Q1 Result Solid, Supply Rise a Concern

The covering analyst thinks Host Hotels' solid Q1 result backed by growth in comparable hotel revenues and improvement in margins is encouraging.

New Upgrades

United Continental (UAL) Reports 7.4% Rise in April Traffic

The Zacks analyst likes the company's strong April traffic report. The proposed measures to improve the flying experience of travelers following the passenger fiasco on Apr 9, also raise optimism.

EnerSys (ENS) Rides High on Positive Industry Trends

Lwer commodity costs, favourable product mix and thriving end markets will continue to fuel EnerSys' growth. Also, the company's diligent restructuring initiatives add to its strength.

Church & Dwight (CHD) Tops Q1 Results, Stock Poised for Growth

Church & Dwight continued with its better-than-expected performance in first-quarter 2017 as well. Per the Zacks analyst, its robust brand portfolio coupled with strategic efforts will drive growth.

New Downgrades

Urban Outfitters' (URBN) Earnings & Sales Remains a Concern

Urban Outfitters' top and bottom lines missed estimates for the third straight quarter, when it posted first-quarter fiscal 2018 results. Per the Zacks analyst, this may further derail the stock.

Shell (RDS.A) Pressured by Renewed Oil Slump, Lofty Capex

The renewed oil price slump, lofty capital spending and exposure to the violence-prone regions in Nigeria has made the covering analyst turn bearish on Royal Dutch Shell.

Acxiom (ACXM) Earnings Miss, Revenues Beat Estimates in Q4

According to the Zacks analyst, weakness in the marketing services segment along with intensifying competition are primary headwinds for Acxiom.

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