Eli Lilly and Company (LLY: $83)
Bull Market Report Target Price: $88
Bull Market Report Sell Price: $76
Earnings Date: Tuesday, 9:00 am ET
Consensus: 1Q17
Revenues: $5.2 B
EPS: $0.96
Year Ago Quarter Results
Revenues: $4.9 B
EPS: $0.83
Key Things to Watch For in the Quarter
Analysts expect Eli Lilly to report a 7% increase in revenues to $5.2 billion and a 16% increase in EPS to $0.96 for 1Q17. Despite Eli Lilly only beating estimates in the second quarter of 2016, the stock has climbed 5% since last year. It is currently trading 30% above its 1-year low of $64, and at a 31 P/E is relatively low compared to the industry average of 60. Eli Lilly also offers its shareholders a 2.5% dividend.
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Equity Residential (EQR: $64)
Bull Market Report Target Price: $85
Bull Market Report Sell Price: $55
Earnings Date: Tuesday, After market close - exact time unavailable
Consensus: 1Q17
Revenues: $605 M
EPS: $0.30
Year Ago Quarter Results
Revenues: $615 M
EPS: $9.84
Key Things to Watch For in the Quarter
Analysts expect Equity Residential to report a 2% decrease in revenues to $605 million and a 97% decrease in EPS to $0.30. The stock has fallen 10% over the past year, however this just provides cheaper opportunities for entry. Equity Residential currently trades at a P/E ratio of 5, which is extremely low compared to the REIT industry. Equity Residential pays a 3% dividend and is trading 12% under its 52-week high.
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PayPal (PYPL: $44)
Bull Market Report Target Price: $48
Bull Market Report Sell Price: We would not sell PayPal
Earnings Date: Wednesday, 2:00 PM ET
Consensus: 1Q17
Revenues: $3.0B
EPS: $0.41
Year Ago Quarter Results
Revenues: $2.5B
EPS: $0.37
Key Things to Watch For in the Quarter
Analysts estimate that PayPal will report a 20% increase in revenue to $3.0 billion and an 11% increase in EPS to $0.41 for 1Q17. In this same quarter, last year PayPal beat estimates, however the stock still fell about 3% in the few weeks following the earnings release. PayPal came through for its shareholders in the last three quarters of 2016 as shares climbed nearly 20% after 1Q16. Analysts are optimistic about PayPal’s most recent announcement, to partner with Visa in order to accelerate the adoption of digital and mobile payments across Asia Pacific, as a major driver of future growth.
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CBRE Group (CBG: $34)
Bull Market Report Target Price: $40
Bull Market Report Sell Price: $32
Earnings Date: Thursday, 08:30 AM ET
Consensus: 1Q17
Revenues: $3.0 B
EPS: $0.34
Year Ago Quarter Results
Revenues: $2.9 B
EPS: $0.36
Key Things to Watch For in the Quarter
Wall Street expects CBRE Group to report a 3% increase in revenues to $3.0 billion and a 6% decrease in EPS to $0.34. As a global force in the real estate market, CBRE has greatly benefited from the appreciation commercial office buildings over the past few years. The stock has provided investors with a 15% return over the past year alone. CBRE beat analyst estimates in all four quarters of 2016. CBRE is currently trading at a P/E ratio of 20, relatively in the REIT world.
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United Parcel Service (UPS: $106)
Bull Market Report Target Price: $125
Bull Market Report Sell Price: $97
Earnings Date: Thursday, exact time unavailable
Consensus: 1Q17
Revenues: $1.1B
EPS: -$0.04
Year Ago Quarter Results
Revenues: $1.0 B
EPS: $0.04
Key Things to Watch For in the Quarter
Analyst estimates suggest that United Parcel Service will report a 10% increase in sales to $1.1 billion and a loss in EPS of $0.04 per share for 1Q17. UPS beat analyst estimates in the first three quarters of 2016, but missed in the fourth. As a result, the stock dropped over 10% following the 4Q16 earnings announcement. The stock has remained relatively unchanged over the past year. We are confident that the stock’s consistent 3.2% dividend will attract investors who are looking for a healthy yield as an alternative to the fixed income markets, as well as great potential for growth.
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Athenahealth (ATHN: $118)
Bull Market Report Target Price: $125
Bull Market Report Sell Price: $113 (changed today from $105)
Earnings Date: Thursday before the market opens
Consensus: 1Q17
Revenues: $300 M
EPS: $0.47
Year Ago Quarter Results
Revenues: $255 M
EPS: $.34
Key Things to Watch For in the Quarter
Analysts estimate that Athenahealth will report significant growth in both revenues and EPS for 1Q17. Sales are expected to increase by 16% to $300 million and EPS are expected to increase by 38% to $0.47. Athena beat analyst estimates in three of the past four quarters, but the stock is up from the $103 level when we added the stock to our Healthcare Portfolio in November. We remain bullish as Athena continues to bring on renowned medical professionals to its board.
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Celgene (CELG: $123)
Bull Market Report Target Price: $135
Bull Market Report Sell Price: $115
Earnings Date: Thursday, 09:00 AM ET
Consensus: 1Q17
Revenues: $3.0 B
EPS: $1.63
Year Ago Quarter Results
Revenues: $2.5 B
EPS: $1.32
Key Things to Watch For in the Quarter
Wall Street analysts estimate that Celgene will report a healthy increase of both sales (21% to $3.0 billion) and EPS (23% to $1.63) for 1Q17. Celgene has consistently beat estimates in the past four quarters pushing the stock up 10% over the past year. Celgene’s four best-selling drugs are all patent-protected in the U.S. until at least 2024, which provides long-term growth potential. Management expects revenue to nearly double by 2020, as it is expected to exceed $21 billion. We are excited to follow Celgene’s growth through the turn of the decade.
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Bristol-Myers Squibb (BMY: $54)
Bull Market Report Target Price: $77
Bull Market Report Sell Price: $51
Earnings Date: Thursday, 10:30 AM ET
Consensus: 1Q17
Revenues: $4.7B
EPS: $0.73
Year Ago Quarter Results
Revenues: $4.4B
EPS: $0.74
Key Things to Watch For in the Quarter
Analysts expect Bristol-Myers Squibb to report an 8% increase in sales to $4.7 billion and a slight 1% decrease in EPS to $0.73. The stock has come back nicely from its low in January of $48. The firm continues to produce a 3% dividend and provides a good opportunity of entry as the stock only trades at a P/E ratio of 20.
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Alphabet (GOOG: $857)
Bull Market Report Target Price: $900
Bull Market Report Sell Price: We would not sell Alphabet
Earnings Date: Thursday, 1:30 PM ET
Consensus: 1Q17
Revenues: $24 B
EPS: $7.40
Year Ago Quarter Results
Revenues: $20 B
EPS: $7.50
Key Things to Watch For in the Quarter
The stock set a new all-time today of $859. Wall Street analysts expect Alphabet, the parent company of Google, to report a 20% increase in sales to $24 billion and a slight 1% decrease in EPS to $7.40. Although Alphabet only beat estimates in two of the four quarters in 2016, the stock still climbed nearly 17% over the past year. Google has made a number of developments this past quarter. YouTube, one of Google’s many subsidiaries, released YouTube TV, which offers customers 40 channels for only $35/month. We look forward to watching Alphabet grow as a result of its supportive firm culture and stellar leadership with CEO Larry Page at the helm.
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Microsoft (MSFT: $67)
Bull Market Report Target Price: $70
Bull Market Report Sell Price: We would not sell Microsoft
Earnings Date: Thursday, 2:30 PM ET
Consensus: 3Q17
Revenues: $24 B
EPS: $0.70
Year Ago Quarter Results
Revenues: $22 B
EPS: $0.62
Key Things to Watch For in the Quarter
Microsoft set a new all-time today at $67. Analysts expect Microsoft to report a 7% increase in revenues to $24 billion and a 13% increase in EPS to $0.70 for 3Q17. Microsoft missed first quarter estimates in 2016, and the stock fell nearly 4% in the weeks following the earnings announcement. This small hiccup was made up for as the stock has climbed 27% over the past year. A few quarters back, Microsoft and Facebook teamed up to build a transatlantic cable, providing its customers in Europe and Asia with better connections to their services.
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Amazon (AMZN: $909)
Bull Market Report Target Price: $1,000
Bull Market Report Sell Price: $875, changed today from $800
Earnings Date: Thursday, 2:30 PM ET
Consensus: 1Q17
Revenues: $35 B
EPS: $1.13
Year Ago Quarter Results
Revenues: $29 B
EPS: $1.07
Key Things to Watch For in the Quarter
Analysts expect Amazon to report a 22% increase in revenues to $35 billion and a 6% increase in EPS to $1.07 for 1Q17. Amazon beat estimates in 1Q16 and the stock climbed 20% in the weeks following the earnings release. Last year was one of the firm’s most successful, providing shareholders with a 43% return. Amazon currently trades at a 180 P/E ratio and is trading 50% above its 52-week low. We know the PE is insane, but it has been insane since the mid-90s when the company was founded. Analysts are bullish on Amazon as it continues to be the bane of the Retail industry. According to the Wall Street Journal, “U.S. Retailers are currently on pace to close the most stores (4,000) in more than a decade,” showing the effect of Amazon’s footprint.