Top Research Reports for February 1, 2017
Wednesday, February 1 2017
Today's Research Daily features new research reports on 12 major stocks, including Johnson & Johnson (JNJ), PayPal (PYPL) and Thermo Fisher (TMO).
Johnson & Johnson have gained +8.5% over the last year, widely outperforming the large-cap pharma space (down -2.4%). J&J reported mixed fourth-quarter results, beating on earnings but missing on sales. However, the 2017 sales outlook was disappointing due to an expected slowdown in Pharma sales as a number of key growth drivers like Remicade and Concerta are facing competition.
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 product pipeline, lack of cyclicality and financial strength position it for continued momentum going forward. (You can read the full research report on Johnson & Johnson here.)
PayPal shares have underperformed the Zacks Internet - Software industry over the last one year, gaining +7.3% vs +9%. However, the worldwide online payments system operator delivered decent fourth-quarter 2016 results, matching expectations on both counts. The analyst stresses that the company will continue to gain from partnerships and mobile centrism. PayPal’s ongoing strategic partnerships with Visa and MasterCard offer great flexibility and choice to consumers.
Partnerships with Facebook, Google, and Alibaba are also delivering positive results. Venmo continues to contribute significantly to the company’s mobile payment volume. However, continuous exposure to foreign exchange and interest rate risks is a concern. (You can read the full research report on PayPal here.)
Thermo Fisher have outperformed the broader medical sector (up more than 16.6% over the last one year vs -3.6% ), Thermo Fisher ended the year 2016 on a mixed note with adjusted earnings ahead of expectations and revenues lagging the same. However, the analyst likes the company’s recent product launches along with strong emerging markets growth.
Thermo Fisher’s acquisition of FEI Company is also going to significantly facilitate its performance in life-science research. The upcoming integration and expected synergy of Affimetrix is another positive. (You can read the full research report on Thermo Fisher here.)
Other noteworthy reports we are featuring today include Celgene (CELG), Halliburton (HAL) American Airlines (AAL).
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Mark Vickery
Senior Editor
Note: Director of Research 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.
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Today's Must Read
J&J (JNJ) Q4 Results Mixed; Pharma Sales to Slow in 2017
PayPal (PYPL) Q4 Earnings and Revenues Match Estimates
Thermo Fisher (TMO) Tops Q4 Earnings, Organic Sales Flat
Featured Reports
Baker Hughes' (BHI) Q4 Loss Wider than Expected, Sales Top
The Zacks analyst believes that lesser work in the North Sea and Brazil resulted in Baker Hughes' wider-than-expected Q4 loss.
American Airlines (AAL) Q4 Earnings In Line, Revenues Top
The covering analyst is impressed by the better-than-expected Q4 revenues. The improved view for Q1 unit revenues is also encouraging.
Coach (COH) Q2 Earnings Beat Estimates, Up Y-o-Y
The Zacks analyst thinks Coach's transformational efforts related to products, stores and marketing and to emerge as a multi-brand company are reflected in its second-quarter fiscal 2017 results.
North America Helps Halliburton (HAL) Beat Q4 Earnings
The covering analyst likes Halliburton's improved utilization on the back of growing North American rig count and maintains a bullish stance on the world's No. 2 oilfield-services provider.
Principal Financial (PFG) Q4 Earnings Beat, Improve Y/Y
Principal Financial's fourth-quarter 2016 earnings beat expectations and improved year over year on higher revenues and solid investment performance.
Western Digital (WDC) Beats Q2 Earnings; '17 View Positive
The Zacks analyst believes that strong demand for both hard drive and NAND-based products from all categories of customers remain positives.
Hess (HES) Q4 Loss Narrower than Expected, Revenues Fall Y/Y
The covering analyst believes that higher oil price realizations led Hess to post narrower-than-expected loss in fourth quarter. However, revenues declined year over year.
New Upgrades
MGIC Investment (MTG) Q4 earnings Beat, Persistency Strong
MGIC Investment's fourth quarter earnings beat expectation. Persistency remains solid. However, given FHA premium cut, the company expects to write 5% to 10% lower new business in 2017.
Sherwin-Williams (SHW) Well Poised on Growth Initiatives
The Zacks analyst is encouraged by the company's upbeat outlook and thinks its focus on growth through acquisitions & expansion of operations and cost control actions will drive results this year.
Celgene (CELG) Q4 Misses Estimates, Expect a Strong 2017
Celgene's fourth quarter results missed on both the top and the bottom line. Nevertheless, per the covering analyst, solid performance from Revlimid and other key drugs should drive a strong 2017.
New Downgrades
Ball Corporation (BLL) Riddled By Near Term Headwinds
The Zacks analyst believes integration risks from the Rexam Buy, higher start-up costs for growth projects, competitive pricing environment in China remain near-term concerns for Ball Corporation.
U.S. Cellular (USM) Cut to Sell On Lingering Concerns
As per the Zacks analyst, U.S. Cellular continues to operate in a competitive and consolidated wireless market and suffer from expenses related to network integration and construction of cell sites.
Unisys Corporation (UIS) Q4 Revenues Lag
Unisys reported mixed fourth-quarter and full-year 2016 results. Incremental investments are squeezing margins while pension liabilities are likely to be a drag on earnings in the future.
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Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Halliburton Company (HAL): Free Stock Analysis Report
Celgene Corporation (CELG): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
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