Top Research Reports for 15th November, 2016

Tuesday, November 15 2016

Today's Research Daily features new research reports on 16 major stocks, including McDonald’s (MCD), Bank of New York Mellon (BK) and 3M (MMM).

Buy-ranked McDonald’s’ shares have struggled lately as a result of the tough operating environment for the restaurant space in general; the entire space has been struggling lately. However, the fast food giant reported encouraging third-quarter adjusted earnings on the back of strong comps growth.

The analyst likes the manner in which the company is trying to strengthen its position via various sales and digital initiatives like menu innovation and introduction of value meals. However, higher labor costs, along with currency headwinds, might hurt profits. (You can read the full research report on McDonald’s here.)

Bank of New York Mellon’s shares have also struggled recently. The Buy ranked stock’s third-quarter earnings easily outpaced expectations. Rise in revenues, lower expenses and benefit from provisions were partially offset by a fall in financing-related fees.

The analyst likes the company’s dedicated global reach, which, accompanied by a diversified product mix and inorganic growth opportunities will improve profitability going forward. Further, cost-saving initiatives will help sustain earnings momentum. However, pressure on margins owing to the persistent low-rate environment is expected to continue in the near term. (You can read the full research report on Bank of New York Mellon here.)

3M’s shares have increased by more than 15% year-to-date but have struggled over the last quarter. Weak revenue growth and intense competition are likely to peg back 3M’s profitability to some extent. 3M is facing increased pension expenses as its workforce begins to retire. Nevertheless, 3M managed to beat third-quarter earnings by a cent.

The analyst likes the company’s focused roadmap on its broad financial objectives for the next five years. 3M is continuing with its portfolio restructuring efforts by divesting non-core assets and making investments in other lucrative markets. 3M expects its restructuring efforts to yield $500–$700 million in annual operational savings by 2020. (You can read the full research report on 3M here.)

Other noteworthy reports we are featuring today include Constellation Brands (STZ), Viacom (VIAB) and Statoil (STO).

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Today's Must Read

McDonald's (MCD) Prospects Bright on Strategic Initiatives

BNY Mellon (BK) Q3 Results Reflect Constant Cost Saving Efforts

3M (MMM) Remains Poised for Healthy Growth Despite Headwinds

Featured Reports

Statoil (STO) Posts Q3 Loss on Weak Oil and Gas Prices

The Zacks analyst believes that lower production, along with weak oil and natural gas prices, led Statoil to post loss in third-quarter 2016.

Devon (DVN) Beats on Q3 Earnings, Cost Savings on Track

The covering analyst believes Devon Energy gained from its cost savings initiatives and focus on core assets amid the volatile commodity prices.

Viacom (VIAB) Q4 Earnings Beat, Decline Y/Y

Despite the Q4 earnings beat, the Zacks analyst is concerned about the company's lower-than-expected revenues. Moreover, both revenues and earnings fell on a year-over-year basis.

TransDigm (TDG) Q4 Earnings Top; Acquisitions Look Promising

The covering analyst thinks strong momentum in commercial aftermarket revenues will continue to drive growth for TransDigm. Its strategic acquisitions are likely to boost core business, going forward.

Manulife (MFC) Earnings Grows on Strong Asian Business

The Zacks analyst believes Manulife is aggressively developing its business in Asia which is reaping solid operational results. Asia business now contributes one-third of the company's earnings.

D.R. Horton's (DHI) Solid Backlog Position to Spur Growth

D.R. Horton is poised to perform well in fiscal 2017 on the back of its robust backlog position and well-stocked inventory of land, lots and homes, per the covering analyst.

Noble Energy (NBL) Posts Narrower-than-Expected Q3 Loss

The Zacks analyst believes that Noble Energy's efforts to monetize its non-core assets will improve its liquidity.

New Upgrades

Arena (ARNA) Q3 Loss Narrower than Expected, Focus on Belviq XR

The Zacks analyst believes that Belviq XR, the extended-release formulation of Belviq, launched in October, can support the top-line.

PNC Financial (PNC) Depicts Organic Growth & Cost Control

The covering analyst thinks PNC Financial's efforts to drive operational efficiency are encouraging. It also continues to gain from organic growth aided by rising loans and deposits.

Constellation Brands (STZ) Looks Solid, Strategies on Track

The Zacks analyst thinks Constellation Brands' brand building efforts and acquisitions have been driving its robust performance. The company's recent view hike further reflects strong prospects.

New Downgrades

Petrobras (PBR) Weighed Down by Oil Rout

The ongoing oil price rout, huge debt burden and involvement in the multibillion dollar money laundering and bribery case has made the Zacks analyst turn bearish on Petrobras.

Conagra (CAG) Down to Strong Sell on Investors' Negative Outlook

Over the last seven days, the Zacks Consensus Estimate for Conagra has declined for fiscal 2017; reflecting investor cautiousness about its latent Lamb Weston spin-off and industry related headwinds.

Michael Kors' (KORS) Outlook Bleak Despite Q2 Earnings Beat

The Zacks analyst thinks that despite Michael Kors' better-than-expected second-quarter results, investor sentiment was hurt due to declines in both the top and bottom lines coupled with a bleak view.

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VIACOM INC-B (VIAB): Free Stock Analysis Report
 
CONSTELLATN BRD (STZ): Free Stock Analysis Report
 
STATOIL ASA-ADR (STO): Free Stock Analysis Report
 
3M CO (MMM): Free Stock Analysis Report
 
MCDONALDS CORP (MCD): Free Stock Analysis Report
 
BANK OF NY MELL (BK): Free Stock Analysis Report
 
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