The Zacks Analyst Blog Highlights: Chubb, Las Vegas Sands, Biogen, Dollar General and Canadian Pacific

Zacks Equity Research

For Immediate Release

Chicago, IL – May 23, 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: Chubb CB, Las Vegas Sands LVS, Biogen BIIB, Dollar General DG and Canadian Pacific CP.

Here are highlights from Wednesday’s Analyst Blog:

Top Research Reports for Chubb, Las Vegas Sands and Biogen

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 Chubb, Las Vegas Sands and Biogen. 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 >>>

Chubb’s shares have gained +8.1% in the past year, outperforming the Zacks Property, Casualty and Title industry, which has increased +2.8% over the same period. The Zacks analyst thinks the company benefits from a suite of compelling products as well as services. Its inorganic growth story is impressive, helping it to achieve a higher long-term ROE.

Increased scales, efficiencies and a solid balance sheet will lend it a competitive edge. It estimates solid growth in Overseas General operations, which includes both commercial and consumer lines. A strong capital position aids Chubb to boost shareholders’ value and invest in strategic initiatives for driving growth.

However, exposure to cat loss remains a concern as it induces volatility in underwriting profitability. Also, mounting expenses weigh on margin expansion. Chubb Limited’s first-quarter 2019 core operating income of $2.54 per share outpaced the Zacks Consensus Estimate of $2.49 by 2% and also improved 8.5% year over year on the back of robust premium growth and net investment income.

Shares of Buy-ranked Las Vegas Sands have gained +15.7% over the past six months, outperforming the Zacks Gaming industry’s increase of +11%. The Zacks analyst thinks that increased revenues at casino, rooms and mall drove the company’s top line in first-quarter 2019. It generated solid revenues from Macao operations as well.

In the next couple of years, the company is likely to spend $2 billion in Macao. To strengthen the resort portfolio, Las Vegas Sands is focusing on expanding the Four Seasons Tower Suites Macao, St. Regis Tower Suites Macao and the Londoner Macao. Planned investment in new capital projects in Macao and higher revenues from The Parisian Macao are also likely to drive growth.

Las Vegas Sands’ consistent focus on a convention-based Integrated Resort business model is an added positive. Nevertheless, high debt and competition are worrisome. Estimates for the current year have witnessed upward revisions in the past 60 days.

Biogen’s shares have underperformed the Zacks Biomedical and Genetics industry year to date (-22.6% vs. +2.2%). Biogen beat estimates for earnings and sales in Q1. The Zacks analyst thinks the Biogen has a strong position in the MS market. Efforts to diversify beyond MS to other areas like Alzheimer’s, Parkinson's and stroke among others are encouraging.

Meanwhile, its newest drug Spinraza is performing well and has multi-billion dollar potential. Biogen’s effort to regularly in-license assets to build its pipeline is a major positive with several having transformative potential. Several data readouts are expected in 2019/2020 with multiple potential launches in the early 2020s.

However, its core MS business, excluding Ocrevus royalties, has been on a declining trend. Also, potential competition to Spinraza from competitors’ gene therapy programs for SMA is a concern. Though Biogen’s CNS pipeline is attractive, it is a high-risk area.

Other noteworthy reports we are featuring today include Dollar General and Canadian Pacific.

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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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Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
 
Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report
 
Chubb Limited (CB) : Free Stock Analysis Report
 
Biogen Inc. (BIIB) : Free Stock Analysis Report
 
Dollar General Corporation (DG) : Free Stock Analysis Report
 
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