Tuesday May 16, 2017
Today’s Research Daily features new research reports on 16 major stocks, including General Dynamics (GD), EOG Resources (EOG) and Abbott (ABT). 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 >>>
General Dynamics’ shares have gained +34.6% over the last one year, outperforming the Zacks Aerospace – Defense industry, which increased +20.8% over the same period. The Zacks analyst likes the improved outlook for the company’s broad portfolio of products and services given the administration’s plans for material spending increases. The expectation is for solid growth momentum post 2017, following the introduction of G500 in 2018, major revenue recognition from Combat Systems’ huge backlog and the Ohio-class Replacement (ORP) submarine program, which should add substantially to the top line by 2019. On the flip side, any slip up in the Trump administration’s commitment to raise defense spending remains a headwind for this company as well as many of its peers. Valuation has become an issue as well following the stock’s aforementioned run up. (You can read the full research report on General Dynamics here >>>)
EOG Resources shares have gained around +16.1% over the last one year, outperforming the Zacks Oil & Gas E&P Industry, which has lost -9.3% over the same period. The Zacks analyst likes the fact that EOG Resources has premium acreages in three prospective oil plays in the U.S like Permian, Bakken and Eagle Ford shale plays. The company has also decided to complete more wells in 2017, which should contribute to production growth. However, significantly higher exploration expenses incurred during the first three months of this year is cause for concern even though Q1 results were better than expected on the back of volume gains and improved realizations. (You can read the full research report on EOG Resources here >>>)
Abbott shares have outperformed the Zacks Medical sector in the year-to-date period (the stock is up +14% vs. +7.7% gain for the sector) on the back of greater appreciation for the company’s strategic repositioning through acquisitions/divestitures. The St. Jude Medical buyout will complement its cardiovascular devices business. Also, the company’s plans to focus on selling its portfolio in core therapeutic areas. Meanwhile, weakness in the nutrition business in China and sluggish growth in the Venezuelan market is a concern. (You can read the full research report on Abbott here >>>)
Other noteworthy reports we are featuring today include Marriott (MAR), Northrop Grumman (NOC) and Symantec (SYMC).
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Director of Research
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
Te Zacks analyst thinks solid year over year growth boosted Northrop’s better-than-expected Q1 results.
The covering analyst thinks Edison International’s better-than-expected earnings were driven by the favorable performance in Southern California Edison.
With GoDaddy delivering strong Q1 results, the Zacks analyst believes that its strategic acquisitions and international expansion are positives.
The covering analyst thinks BorgWarner it will benefit from global expansion, capital deployment and restructuring initiatives.
The Zacks analyst thinks AGCO will gain from increased investments. Focus on capital allocation plan, new product development and cost-reduction efforts will also drive growth.
The covering analyst believes that Agilent’s focus on life sciences, genomics, diagnostics and wireless test markets offer higher growth potential.
The Zacks analyst views favorably Universal Health’s earnings outperformance which is largely supported by the company’s consistent revenue increase, robust inorganic growth and solid fundamentals.
Puma’s lead cancer candidate, neratinib, looks promising with several studies underway. Approval will be a huge boost for the company, believes the Zacks analyst.
The Zacks analyst thinks that the higher number of distribution deals and merger with Rovi will support TiVo’s expansion plans and strengthen its customer base and in turn continue to boost revenues.
The covering analyst remains upbeat about Marriott post earnings. Despite risks, Marriott is poised to grow given the Starwood acquisition, rise in demand for travel and huge international exposure.
Strayer Education’s earnings were in line with analysts’ expectations. The covering analyst stresses that tuition cuts and unfavorable mix of students is resulting in lower revenue per student.
Nikon reported a net loss in fiscal 2017, compared to earnings posted last fiscal. Its bottom line remains vulnerable to restructuring expenses, currency risks and a shrinking digital camera market.
A dismal 4Q17 result along with soft guidance for the forthcoming quarter and FY18 makes the Zacks analyst increasingly cautious about its near-term performance.
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Symantec Corporation (SYMC): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
Marriott International (MAR): Free Stock Analysis Report
General Dynamics Corporation (GD): Free Stock Analysis Report
EOG Resources, Inc. (EOG): Free Stock Analysis Report
Abbott Laboratories (ABT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
May 17, 2017 at 01:02AM
from Sheraz Mian