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Top Analyst Reports for Lockheed Martin, Allergan & Barclays

Tuesday, March 13, 2018

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 Lockheed Martin (LMT), Allergan (AGN) and Barclays (BCS). 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 >>>

Lockheed Martin’s shares have gained +24.3% over the last year, underperforming the Zacks Aerospace Defense sector, which has gained +47.3% over the same period. However, Lockheed Martin, being the largest defense contractor in the world, experiences strong demand for high-end military equipment in both domestic as well as overseas markets.

The Sikorsky takeover has proved to be beneficial for the company, in terms of substantial contract wins for production of newly designed choppers as well as maintenance of the existing one. In fact, strong order growth has been a primary growth driver for this company. Lockheed Martin continues to be a strong cash generator, helping it to take important cash deployment decisions.

However, the F-35 program, despite being a prime defense project for the U.S. government, has been facing criticism for being overly expensive for past few years. The company also faces intense competition for its broad portfolio of products and services in both domestic and international markets.

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

Shares of Allergan have lost -3.2% year to date, marginally underperforming the Zacks Generic Drugs industry, which has declined -3.0% over the same period. Allergan boasts dominant growth franchises across several therapeutic areas.

Key products like Botox and Linzess and new products such as Viberzi, Namzaric and Vraylar support sales. Allergan also boasts a strong branded pipeline with meaningful data readouts expected in 2018. Biosimilars also represent significant opportunity.

However, while the Zacks analyst remains optimistic about the company’s growth prospects, Allergan faces potential loss of exclusivity for many products in 2018 including Namenda XR and Restasis. Also, competition for key growth drivers, Restasis and Linzess, is an investor concern. Nonetheless, in late 2017, Allergan announced cost-cutting initiatives to protect it from potential revenue declines.

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

Barclays’s shares have outperformed the Zacks Foreign Banks industry over the last six months, with BCS shares up +17.7% vs. +5.1% gain for the industry. The company has surpassed expectations for earnings in only one of the trailing four quarters. The bank’s fourth quarter 2017 results reflected a slight improvement in revenues and lower expenses.

However, the Zacks analyst thinks restructuring and business simplifying efforts have ended successfully and will likely continue to result in decrease in expenses. Also, driven by these efforts, the company intends to enhance capital deployment activities as profitability improves going forward.

The bank has been facing pressure on revenues owing to weak capital market performance, low interest rates and uncertainty related to Brexit. Further, litigation matters remain a near-term concern.

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

Other noteworthy reports we are featuring today include Constellation Brands (STZ), Sun Life Financial (SLF) and Southwest Airlines (LUV).

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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>>>

Featured Reports

Strong Pipeline Boosts Nektar (NKTR), Competition Intense

Per the Zacks analyst, Nektar has a strong pipeline, with many updates lined up.

Big Cap-Ex Plan Aids Entergy (ETR), Nuclear Labor Cost Ails

Per the Zacks analyst, solid investment plan helps Entergy in modernizing its grids and offering reliable services to its customers.

Sun Life (SLF) Grows on Strong Asian Business, Costs a Worry

Per the Zacks analyst, digital and wealth initiatives in Canada, sales momentum in Asia, scaling and integration of U.S. operations, and strong asset management businesses bodes well for Sun Life.

Restaurant Brands (QSR) Rides on Popeyes Louisiana Buyout

The Zacks analyst believes that the Popeyes Louisiana Kitchen buyout has accelerated Restaurant Brands' global unit development and aided in cutting costs.

Apache (APA) Aided by Alpine High Amid North Sea Woes

The Zacks analyst likes Apache's promising Alpine High discovery with strong economics and top-tier returns but is concerned over operational issues in North Sea that resulted in lower production.

Dividends & Buybacks Buoy Southwest (LUV), High Costs Ail

The Zacks analyst likes the company's efforts to reward shareholders. The increase in passenger revenues are encouraging too.

Copart (CPRT) to Benefit from AVK Acquisition

Per the Zacks analyst, buyout of Finland-based salvage auto auction company AVK will help Copart expand its operations in the Europe's Nordic region.

New Upgrades

Ciena (CIEN) Rides on Solid Portfolio, Asia Pacific Growth

Per the Zacks analyst, Ciena's diversified product portfolio is helping it to expand its customer base. High growth in Asia Pacific, especially in India, is a key driver.

Solid Timberland Performance to Aid Rayonier's (RYN) Growth

The Zacks analyst thinks that improving performance in the Pacific Northwest and New Zealand timber segment will enable Rayonier to enjoy better pricing power.

Robust Portfolio, China & Europe Strength Aids Agilent (A)

Per the Zacks analyst, Agilent benefits from an expanding product portfolio, end-market strength and robust performance in China and Europe.

New Downgrades

Cures Act Hurts BioScrip (BIOS) Sales, Non-core Wing Shrinks

Per the Zacks analyst, Cures Act related reimbursement issues will continue to mar BioScrip's topline performance through 2021. Non-core business mix contraction continues to hamper sales growth.

Weak Connected Care & Health Informatics Hurts Philips (PHG)

Per the Zacks analyst, tepid performance of Philips' Connected Care & Health Informatics business due to postponement of large orders in health informatics is weighing on the company's bottom line.

Soft Wine Business Hurt Constellation Brands' (STZ) Top Line

Per the Zacks analyst, softness in Constellation Brands' wine and spirits business is impacting overall sales. Going forward, the segment's results are likely to be hurt by slowdown in the industry.


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Constellation Brands Inc (STZ): Free Stock Analysis Report
 
Sun Life Financial Inc. (SLF): Free Stock Analysis Report
 
Southwest Airlines Company (LUV): Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
 
Barclays PLC (BCS): Free Stock Analysis Report
 
Allergan plc (AGN): Free Stock Analysis Report
 
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