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Top Stock Reports for Booking Holdings, Allergan & Honda Motor Co.

Mark Vickery

Tuesday, November 12, 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 Booking Holdings (BKNG), Allergan (AGN) and Honda Motor Co. (HMC). 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.

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

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.

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

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.

(You can read the full research report on Honda Motor here >>>)

Other noteworthy reports we are featuring today include BCE Inc. (BCE), Infosys (INFY) and Activision Blizzard (ATVI).

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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>>>

Today's Must Read

Solid Gross Bookings Momentum Aids Booking Holdings (BKNG)

Allergan (AGN) Rides on Botox Sales, Generic Woes Remain

Honda's (HMC) Focus on Electric Cars to Aid Amid High Capex

Featured Reports

BCE to Benefit from Wireless & Wireline Subscriber Growth

Per the Zacks analyst, BCE is likely to benefit from customer growth and higher contribution from prepaid services, along with increase in business IP broadband connectivity and service solutions.

Infosys (INFY) Rides on Digital Business and Partnerships

Per the Zacks analyst, Infosys is benefiting from digital services growth, which is helping it win customers. Its partnership with the likes of Google Cloud, Adobe & Amazon Web Services is a tailwind.

Growth in Famous Franchises, E-Sports Aids Activision (ATVI)

Per the Zacks analyst, Activision's foray into e-sports and user base expansion from strength in popular franchises bodes well for its growth prospects.

TD Ameritrade (AMTD) Records High Trading Volumes and Revenue

The Zacks analyst believes TD Ameritrade is poised to growth through improving trading activities as DARTs expected to rise.

Match Group (MTCH) Rides on Solid Tinder Adoption & Buyouts

Per the Zacks analyst, Match Group is benefiting from increasing subscriber base, driven by solid contribution from Tinder.

Core CVI Arm Aids Cooper (COO), Soft Fertility Sales Ail

Cooper has been gaining consistently from solid prospects of its core CVI segment. The Zacks Analyst is apprehensive about softness in the company's Fertility sales.

Omnicare's Global Uptake, New FDA Nods Buoy Insulet (PODD)

The Zacks analyst is bullish about Insulet's steady global rollout of Omnipod systems across all international geographies.

New Upgrades

Solid End-Market Prospects to Aid Quanta Services (PWR)

Per the Zacks analyst, solid end-market prospects across its business segments, namely Electric Power and Pipeline and Industrial Infrastructure, to drive growth for Quanta Services.

CyberArk (CYBR) Benefits From Strategic Buyouts & Deal Wins

Per the Zacks analyst, CyberArk is gaining from its strategic acquisitions like Conjur and Vaultive. Moreover, deal wins from advisory firms and U.S. military and intelligence agencies are a tailwind.

Groupon (GRPN) Rides on Strategic Deals & Product Rollouts

Per the Zacks analyst, Groupon's partnership with Grubhub and ParkWhiz along with ongoing brand awareness programs will aid revenues. Further, launching new products on a regular basis is a positive.

New Downgrades

Dr. Reddy's (RDY) Sales Affected by Price Erosion In Generics Market

Per the Zacks analyst, Dr. Reddy's sales will be hurt by the price erosion in the North America generics market. Moreover, the European market is also witnessing high price erosion in some of the key

Insperity (NSP) Hurt by Increasing Expenses, Competition

Per the Zacks analyst, Insperity's bottom line is under pressure due to increased expenses related to investment in technology and products. Intense competition remains another concern.

Soft International Sales Likely to Hurt Papa John's (PZZA)

Per the Zacks analyst, softer revenues in the international segment likely to hurt Papa John's top-line. Higher costs pertaining to technology remains an added concern.

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