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The Zacks Analyst Blog Highlights: Regeneron, Vertex Pharmaceuticals and West Pharmaceutical Services
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For Immediate Release
Chicago, IL – September 8, 2021 – 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: Regeneron Pharmaceuticals, Inc. (REGN - Free Report) , Vertex Pharmaceuticals Incorporated (VRTX - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
A Short Trading Week: Global Week Ahead
With the USA observing a Labor Day holiday, the trading week is shortened to four days for stocks listed solely there.
In turn, this Global Week Ahead looks to be dominated by non-U.S. events.
I see policy rate decisions from Australia, Canada and the European Central Bank.
I also see a series of macro data prints hailing from Mainland China. Their trade data and PPI data will get scrutiny.
There are also a series of monetary policy decisions being taken outside the G10 countries (Russia, Peru, Poland, Malaysia). Note this: a number of these central banks are going to hike policy rates. Their currencies are more volatile. Hence, their central bankers are more vigilant to rapid inflation risks.
In short, this Global Week Ahead will be truly global, for once.
Next are Reuters' five world market themes, reordered for equity traders.
Given the list is dominated by macro prints and central bank actions, I put the list in serial time order.
(1) On Tuesday, Traders See Latest Mainland China Trade Data
While the Fed lays the groundwork for tapering, talk of easing has cushioned the disappointment from poor economic data in China, where the recovery momentum has all but run dry.
Trade data on Tuesday is likely to cap a run of weak releases, most recently showing manufacturing growth at a standstill last month while services contracted — all of which is beginning to make the yuan's strength look stretched.
Economists, bouncing stocks and rallying bond markets suggest easing before the year is out, probably via cuts to banks' reserve requirement ratio.
Beijing's policymakers may need to pay special attention to property developers if they want to see growth and lending flowing again follow a crackdown on indebtedness that has set them and their lenders reeling.
(2) On Thursday, European Central Bank Meeting Ends
The European Central Bank meeting ends on Thursday, and a deluge of recent comments from policy hawks suggest it is set for a lively debate.
Euro-area inflation has surged to a 10-year high at 3%. Markets may be willing to overlook noise around price pressures, generally viewed as temporary, but the hawkish chatter from German, Dutch and Austrian officials is reason for unease.
Economists reckon it's still too early for the ECB to call time on emergency stimulus, but it could on Thursday agree to slow the pace of its bond buys.
If markets interpret such a step as hawkish, the euro and bond yields will likely rise. ECB chief Christine Lagarde has a communication challenge on her hands.
(3) On Friday, Traders See U.S. Producer Price Index (PPI) for August
Just how sticky is the latest bout of inflation?
Friday's U.S. August producer price index data could provide some clues after July showed the largest annual increase in over a decade as inflation pressures undercut the Fed's view that higher prices will likely prove transitory.
The big jump in PPI came as the swift economic recovery caused a mismatch between supply and demand, leaving producers grappling with low inventories, higher commodity prices, a global shipping container crisis and increased labor costs.
Some worry that persistent signals of rising inflation could push the Fed to roll back easy money faster than expected.
Fed Chair Jerome Powell has repeatedly said the current inflation burst is temporary and assured markets that policymakers would take a measured approach to tapering monthly bond purchases.
(4) Emerging Market Central Banks May Hike Policy Rates
The Fed, ECB and Bank of Japan may be sitting on their hands as inflation ramps up, but developing economies most certainly are not as the coming days will again show.
Volatile emerging currencies can hugely amplify price rises, so central banks need to be on their toes:
- In Russia, where inflation is at a five-year year high, interest rates are expected to rise for a fifth time this year on Friday
- Peru could jack up its rates by 50-75 basis points on Thursday, along with fellow potential hiker Ukraine
- Although Malaysia should stand pat that day
- Even eastern Europe's lone dove Poland could sound more hawkish on Wednesday
(5) Post-Afghanistan, Geopolitical Event Risks Still With Us
Commemorations of the 9/11 attacks on New York's World Trade center two decades ago take place in the wake of a chaotic pullout of Afghanistan that has raised concerns about fresh terror threats and brought a multitude of humanitarian and security challenges.
Latest events are a potent reminder that there is little sign of political risk abating, and some momentous shifts are underway from changing international alliances to political reorientations.
Not all will be as violent as the exit from Afghanistan.
But markets are paying closer attention to growing political risks:
- Japan's struggling Prime Minister Yoshihide Suga has just decided to quit,
- Germans head to the polls in what could be a momentous Sept. 26th election as Chancellor Angela Merkel steps down after 16 years in power, and
- A November ballot in Chile could see the pendulum in the region shift further to the left.
Top Zacks #1 Ranked (STRONG BUY) Stocks
Pricy Biotech/Pharma stocks are a worthy subject this week. Three made out #1 list.
(1) Regeneron: This is now a $675 share price stock, creating a market cap of $72.3B. I see a Zacks Value score of C, a Zacks Growth score of D and a Zacks Momentum score of B.
(2) Vertex Pharma: This is a $199 share price stock, creating a market cap of $1.7B. I see a Zacks Value score of D, a Zacks Growth score of F and a Zacks Momentum score of C.
(3) West Pharmaceutical Services: This is a $459 share price stock, creating a market cap of $34B. I see a Zacks Value score of F, a Zacks Growth score of C and a Zacks Momentum score of D.
Those steep share prices amount to sticker shock, at least for this economist.
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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The Zacks Analyst Blog Highlights: Regeneron, Vertex Pharmaceuticals and West Pharmaceutical Services
For Immediate Release
Chicago, IL – September 8, 2021 – 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: Regeneron Pharmaceuticals, Inc. (REGN - Free Report) , Vertex Pharmaceuticals Incorporated (VRTX - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
A Short Trading Week: Global Week Ahead
With the USA observing a Labor Day holiday, the trading week is shortened to four days for stocks listed solely there.
In turn, this Global Week Ahead looks to be dominated by non-U.S. events.
I see policy rate decisions from Australia, Canada and the European Central Bank.
I also see a series of macro data prints hailing from Mainland China. Their trade data and PPI data will get scrutiny.
There are also a series of monetary policy decisions being taken outside the G10 countries (Russia, Peru, Poland, Malaysia). Note this: a number of these central banks are going to hike policy rates. Their currencies are more volatile. Hence, their central bankers are more vigilant to rapid inflation risks.
In short, this Global Week Ahead will be truly global, for once.
Next are Reuters' five world market themes, reordered for equity traders.
Given the list is dominated by macro prints and central bank actions, I put the list in serial time order.
(1) On Tuesday, Traders See Latest Mainland China Trade Data
While the Fed lays the groundwork for tapering, talk of easing has cushioned the disappointment from poor economic data in China, where the recovery momentum has all but run dry.
Trade data on Tuesday is likely to cap a run of weak releases, most recently showing manufacturing growth at a standstill last month while services contracted — all of which is beginning to make the yuan's strength look stretched.
Economists, bouncing stocks and rallying bond markets suggest easing before the year is out, probably via cuts to banks' reserve requirement ratio.
Beijing's policymakers may need to pay special attention to property developers if they want to see growth and lending flowing again follow a crackdown on indebtedness that has set them and their lenders reeling.
(2) On Thursday, European Central Bank Meeting Ends
The European Central Bank meeting ends on Thursday, and a deluge of recent comments from policy hawks suggest it is set for a lively debate.
Euro-area inflation has surged to a 10-year high at 3%. Markets may be willing to overlook noise around price pressures, generally viewed as temporary, but the hawkish chatter from German, Dutch and Austrian officials is reason for unease.
Economists reckon it's still too early for the ECB to call time on emergency stimulus, but it could on Thursday agree to slow the pace of its bond buys.
If markets interpret such a step as hawkish, the euro and bond yields will likely rise. ECB chief Christine Lagarde has a communication challenge on her hands.
(3) On Friday, Traders See U.S. Producer Price Index (PPI) for August
Just how sticky is the latest bout of inflation?
Friday's U.S. August producer price index data could provide some clues after July showed the largest annual increase in over a decade as inflation pressures undercut the Fed's view that higher prices will likely prove transitory.
The big jump in PPI came as the swift economic recovery caused a mismatch between supply and demand, leaving producers grappling with low inventories, higher commodity prices, a global shipping container crisis and increased labor costs.
Some worry that persistent signals of rising inflation could push the Fed to roll back easy money faster than expected.
Fed Chair Jerome Powell has repeatedly said the current inflation burst is temporary and assured markets that policymakers would take a measured approach to tapering monthly bond purchases.
(4) Emerging Market Central Banks May Hike Policy Rates
The Fed, ECB and Bank of Japan may be sitting on their hands as inflation ramps up, but developing economies most certainly are not as the coming days will again show.
Volatile emerging currencies can hugely amplify price rises, so central banks need to be on their toes:
(5) Post-Afghanistan, Geopolitical Event Risks Still With Us
Commemorations of the 9/11 attacks on New York's World Trade center two decades ago take place in the wake of a chaotic pullout of Afghanistan that has raised concerns about fresh terror threats and brought a multitude of humanitarian and security challenges.
Latest events are a potent reminder that there is little sign of political risk abating, and some momentous shifts are underway from changing international alliances to political reorientations.
Not all will be as violent as the exit from Afghanistan.
But markets are paying closer attention to growing political risks:
Top Zacks #1 Ranked (STRONG BUY) Stocks
Pricy Biotech/Pharma stocks are a worthy subject this week. Three made out #1 list.
(1) Regeneron: This is now a $675 share price stock, creating a market cap of $72.3B. I see a Zacks Value score of C, a Zacks Growth score of D and a Zacks Momentum score of B.
(2) Vertex Pharma: This is a $199 share price stock, creating a market cap of $1.7B. I see a Zacks Value score of D, a Zacks Growth score of F and a Zacks Momentum score of C.
(3) West Pharmaceutical Services: This is a $459 share price stock, creating a market cap of $34B. I see a Zacks Value score of F, a Zacks Growth score of C and a Zacks Momentum score of D.
Those steep share prices amount to sticker shock, at least for this economist.
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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.