New Research Reports for Tesla, Exxon, JNJ & Others
Friday, July 5, 2016
Today's must-read reports are for Exxon Mobile (XOM), Johnson & Johnson (JNJ) and Tesla (TSLA).
ExxonMobil shares have struggled lately, following the oil giant's weak June quarter results where it missed expectations given the impact of sharply lower commodity prices and weaker refining margins that was only partly offset by strong Chemical unit results. While the stock will continue to follow the underlying commodity, the company remains a true bellwether for the space, with a resilient and integrated business model that is the envy of its peers. The company's credit profile is no longer prestine after losing the prestigious AAA rating earlier this year, but it still has a fortress balance sheet and pays out a highly secure dividend. (You can read the full research report on XOM here>>)
Johnson & Johnson's strong Q2 results have helped sustain the stock's positive momentum lately (up more than 20% year to date). The pharma giant beat top- and bottom-line estimates and guided higher. While the company is faced with a number of headwinds like unfavorable currency movements, increased competition from generics, pricing pressures and an uncertain global macroeconomic backdrop, the analyst believes that JNJ's diversified business model, deep pipeline, lack of cyclicality and financial strength position it for continued momentum going forward. (You can read the full analyst report on JNJ here>>)
Tesla is one of those companies that generate a lot of passion among investors; it has an avid fan base, but also plenty of detractors. The detractors simply don't see any justification for the stock's lofty valuation given the niche nature of the product and the well-known operational and strategic headwinds facing the company. Tesla's Q2 results were mixed, with deliveries coming short of guidance for the second quarter in a row. In the update research report issued by our analyst today, he discusses the pros & cons of the Tesla story. The analyst likes Tesla’s new Master Plan, rapid international expansion, increasing production volume and continued investment in infrastructure development. (You can read the full research report on TSLA here>>)
Other noteworthy reports today include Travelers (TRV) and Thermo Fisher (TMO).
You can find all of today's stock research reports here>>>
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Sheraz Mian
Director of Research
Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview. He also provides weekly commentary to Zacks Premium subscribers and manages the Zacks Focus List and Top 10 portfolios. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
ExxonMobil (XOM) Q2 Earnings Dull, Pricing Woes Remain
Bristol-Myers (BMY) Beats on Q2 Earnings, Lifts Outlook
Tesla's (TSLA) Q2 Loss Wider than Expected, Revenues Beat
Featured Reports
Forex Woes a Drag on Thermo Fisher (TMO) Despite Exciting Q2
The Zacks analyst is worried that adverse forex impact will continue to mar performance through 2016.
Marathon's (MRO) Q2 Loss Narrower-than-Expected, Sales Beat
According to the Zacks analyst, strategies like cost reduction initiatives, efficiency gains and consistent execution helped Marathon post lower than expected Q2 loss.
Western Digital (WDC) Q2 Results Driven by SanDisk Buyout
The analyst thinks Western Digital's move to shift business toward non-PC applications, secular growth of digital data and buyout of SanDisk will drive future growth.
Garmin (GRMN) Tops Q2 Earnings Estimates, Raises Outlook
A constantly evolving product line, secular drivers in the aviation market, market share gains in the marine market and contributions from acquisitions drove robust Q2 results.
Western Union (WU) Beats on Q2 Earnings as Expenses Decline
Earnings beat estimates and increased 17% Y-oY due to strong growth in digital business and the U.S. money transfer business.
Macerich's (MAC) Q2 FFO & Revenues Beat, Reaffirms View
The covering analyst thinks strong operating performance and releasing spread aided Q2's FFO beat. But geographic concentration and intense competition remain concerns.
Q2 Earnings Beat at Discovery Communications (DISCA)
The Zacks analyst believes that the yearly increase in earnings coupled with a string of important deals should boost growth but foreign currency risks pose a concern.
New Upgrades
Celgene (CELG) Tops Q2 Earnings & Revenues, Lifts View
The Zacks analyst believes that raised outlook for 2016 is achievable on the back of Revlimid's performance.
J&J (JNJ) Poised for Growth on Strong Pharma Segment
The covering analyst believes strong performance of new as well as core products and share buybacks will drive results. J&J has a deep and promising pipeline with a good new product launch record.
Waste Management (WM) Banks on Restructuring Initiatives
Waste Management aims to refocus on its core business activities and instill price and cost discipline to achieve better margins.
New Downgrades
Travelers' (TRV) Q2 Earnings Decline, Premium Grows
Travelers' second-quarter 2016 earnings deteriorated on higher catastrophe losses and certain weather-related losses. However, the company displayed net premium growth in the reported quarter.
Office Depot's (ODP) Dismal Run Continues in 2Q16
According to the Zacks analyst, softness in the office products sector and stiff competition from online retailers continued to mar results in Q2, as both top and bottom lines missed estimates.
Micron (MU) Continues to Have a Dismal Sales Run
The covering analyst thinks soft demand for PCs and lower DRAM selling prices are a major concern. Also, the buyout of SanDisk by Western Digital has created newer challenges for Micron.
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TESLA MOTORS (TSLA): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis Report
THERMO FISHER (TMO): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
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