Top Research Reports for April 12, 2017: GM, PG, GS
Wednesday, April 12 2017
Today's Research Daily features new research reports on 16 major stocks, including General Motors (GM), Procter & Gamble (PG) and Goldman Sachs (GS).
General Motors have been strong performers over the past year (the stock is up +14.2% vs. +9.9% for the Zacks Auto sector & -11.9% for Ford), though they have struggled lately. The Zacks analyst likes the company’s capital allocation strategy, investments in plants in the U.S. and emerging markets, product launches and focus on technology development.
Moreover, the company's focus on capital deployment is expected to boost shareholder returns. However, the automaker is under pressure due to lower U.S. vehicles sales in 2016, a recent settlement related to the 2014 ignition switch recall and a large fine by China for monopolistic pricing behavior. Quarterly estimates for the company are also going down lately. (You can read the full research report on General Motors here.)
Shares of Procter & Gamble outperformed the Zacks Consumer Staples sector in the past year (+8.9% vs. +2.2%) on the back of improved organic sales and improving margins as a result of productivity gains and cost-saving efforts. Also, P&G shares have outperformed the S&P 500 index in the year-to-date period (up +6.8% vs. +5.2%). P&G’s quarterly results exceeded expectations.
On the flip side, the Zacks analyst points to mature end markets and the negative impact of the strong U.S. dollar as some of the headwinds for the stock. Also, flat pricing/mix is reflective of increased competition and lack of transformational innovation. The company also lost global market share in three of its five reporting segments. (You can read the full research report on Procter & Gamble here.)
Goldman Sachs outperformed the Investment Brokers industry over the past six months (+34.5% vs. +24.2%), while its focus to capitalize on growth opportunities through strategic moves, including its new digital consumer lending platform, should continue to bolster its overall business. Also, the company is poised to benefit from its disciplined expense management and solid capital position. However, several issues including sluggish global economic growth and a stringent regulatory landscape remain near-to-medium-term headwinds. (You can read the full research report on Goldman Sachs here.)
Other noteworthy reports we are featuring today include Kimberly-Clark (KMB), General Dynamics (GD) and Morgan Stanley (MS).
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Today's Must Read
General Motors' (GM) Growth Plans to Benefit; Recalls Linger
Procter & Gamble's (PG) Cost Saving Plans Impress, Sales Weak
Goldman (GS) Exhibits Cost Control; Regulatory Issues Linger
Featured Reports
Dominion (D) Gains from investment, Lower hedged Price a Woe
The Zacks analyst believes Dominion's strengthening of existing infrastructure and expansion of midstream assets are positives but completion of projects within time and budget is a concern.
Syncrude Stakes Boosts Suncor (SU), Pricing Woes Remain
The covering analyst thinks Suncor is likely to benefit from its Syncrude oil sands project and cost cut initiatives.
Flour's (FLR) Government Business Prospects Look Promising
The Zacks analyst thinks robust backlog levels and thriving Government and Infrastructure business lines will help Fluor offset prolonged softness in mining & metals business and commodity price woes.
Lululemon (LULU) Gives Bleak View on Soft Q1 Comps Trend
The covering analyst thinks while Lululemon's fourth-quarter fiscal 2016 earnings improved year over year, it provided a bleak first-quarter fiscal 2017 outlook due to soft comps so far in the quarter.
Morgan Stanley (MS) Remains On Track To Reduce Expenses
The Zacks analyst thinks Morgan Stanley's continuous cost saving initiatives positions it well for further improvement in profits.
Mondelez's (MDLZ) Volumes Weak ,Cost Saving Drive Margins
The covering analyst stresses that Mondelez' margins have remained strong backed by cost savings and productivity gains.
Qualcomm (QCOM) Counter Attacks Apple on its Allegations
Qualcomm has counter sued Apple for the $1 billion suit filed against it by Apple in Jan 2017.
New Upgrades
NRG Energy's (NRG) Strategic Initiatives to Drive Growth
The Zacks analyst believes NRG Energy's cost savings initiatives, debt reduction plans and expansion of renewable operations will boost its performance.
Cummins (CMI) to Benefit from Joint Ventures & New Products
The covering analyst believes Cummins is set to benefit from its innovative products, joint ventures, acquisitions and cost reduction measures. Moreover, it is seeing rising demand for engines.
Kimberly-Clark (KMB) Gains on Savings; Despite Sales Woes
Kimberly-Clark focuses on cost savings and product innovation to drive growth, despite sluggish organic sales growth environment and increased competition, per Zacks analyst.
New Downgrades
General Dynamics (GD) Hurt by Stiff Competition from Peers
The Zacks analyst thinks General Dynamics operates in a highly competitive market and has to rely on other companies to provide materials and components for its products, which may hurt its growth.
Intel (INTC) Down on Sluggish View, Intensifying Competition
According to the covering analyst, flat revenue growth projection for full-year 2017 will weigh on profitability. Moreover, increasing ARM-based competition is a concern.
Cigna (CI) Bothered by Seniors Business, Tiff With Anthem
Cigna's Seniors business is likely to suffer from CMS sanction on selling Medicare Advantage plans, tiff with Anthem casts uncertainty over the termination fee and other charges claimed by it.
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Procter & Gamble Company (The) (PG): Free Stock Analysis Report
Morgan Stanley (MS): Free Stock Analysis Report
Kimberly-Clark Corporation (KMB): Free Stock Analysis Report
Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
General Dynamics Corporation (GD): Free Stock Analysis Report
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