U.S. Markets closed

Top Analyst Reports for Abbott, Philip Morris & Lowe's

Mark Vickery

Monday, November 25, 2019

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Abbott Laboratories (ABT), Philip Morris International (PM) and Lowe's Companies (LOW). 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 >>>

Abbott’s shares have outperformed the Zacks Medical Products industry year to date (+15.8% vs. +12.2%). The Zacks analyst believes that sluggish Neuromodulation and Vascular sales has dented growth. Abbott registered strong and consistent performance within EPD and Medical Devices segments.

Abbott has been in news within Diabetic Care on growth with FreeStyle Libre. Also, solid contributions from Diagnostics were encouraging on double-digit growth in core laboratory. Within Structural Heart, worldwide uptake of MitraClip improved further. Meanwhile, emerging market performance has been promising. Abbott exited third-quarter 2019 on a mixed note with earnings meeting estimates and revenues missing the same.

Abbott has narrowed its EPS guidance for 2019. Abbott's international performance was dented by increasing currency headwinds and lower non-governmental organization purchases in Africa.

(You can read the full research report on Abbott here >>>)

Shares of Philip Morris have gained 6% in the past three months against the Zacks Tobacco industry’s rise of 5.2%. The Zacks analyst believes that Efficient pricing and gains from growth of IQOS in RRPs arena have remained as upsides for the company.

These factors had a positive impact on third-quarter results, with earnings and revenues beating the Zacks Consensus Estimate. Also, earnings improved year on year. We note that the company is on track with investments to bolster presence in the RRPs space.

However, the company has been facing persistent sluggishness in the cigarette category. During the third quarter, cigarette shipment volumes declined 5.9% while overall revenues from combustible products slipped 5.7%. Moreover, unfavorable currency movements are a threat.

(You can read the full research report on Philip Morris here >>>)

Lowe's shares have gained 23.9% over the past six months against the Zacks Building Products - Retail industry's rise of 15.6%. The Zacks analyst believes that strong macroeconomic landscape along with constant efforts to enhance customers’ experience, solid performance of the merchandise category and strength in the Pro business bode well.

The stock received a boost when it reported third-quarter fiscal 2019 results, wherein earnings grew year over year and beat the Zacks Consensus Estimate. Moreover, comps in the quarter increased, driven by solid performance in its U.S. home improvement stores. Strong macroeconomic landscape along with constant efforts to enhance customers’ experience, solid performance of the merchandise category and strength in the Pro business also bode well.

Further, efforts to enhance online business led to robust comps growth in lowes.com. Encouragingly, management raised adjusted earnings guidance for fiscal 2019. However, high level of debt for the past few quarters may act as a deterrent. Also, the company is exposed to competition.

(You can read the full research report on Lowe's here >>>)

Other noteworthy reports we are featuring today include PNC Financial Services (PNC), Equinix (EQIX) and Kinder Morgan (KMI).

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.

This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.

See their latest picks free >>

Mark Vickery
Senior Editor

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

Strong Organic Growth Within EPD Segment Aids Abbott

RRPs Drive Phillip Morris (PM), Soft Cigarette Volumes Hurt

Lowe's (LOW) Pro Customer Strategy May Help Lift Sales

Featured Reports

Attractive Business Mixes Aid PNC, Increasing Costs a Woe

Per the Zacks analyst, execution of strategic initiatives and attractive business profile helps PNC improve its topline.

Equinix (EQIX) Rides on Strong Interconnection Activity

Per the Zacks Analyst, new connections in Equinix's (EQIX) comprehensive global interconnection platform will augur well for the company.

Kinder Morgan (KMI) Banks on Fee-Based Revenues, Debts High

Kinder Morgan will generate stable fee-based revenues from its huge network of natural gas pipelines in North America.

Eylea, Dupixent Drive Regeneron (REGN) Amid Competition

Per the Zacks analyst, lead drug Eylea and asthma drug Dupixent drive growth for Regeneron.

Prudential (PRU) Gains on Assurance Acquisition, Costs High

Per the Zacks analyst, acquisition of Assurance will enable the company to achieve long-term growth by strengthening its distribution capabilities.

Autodesk (ADSK) Banks on Portfolio Strength Amid Macro Woes

Per the Zacks analyst, Autodesk's portfolio strength is helping the company steer past competition in manufacturing space.

Rising Investments, Renewable Focus Aid Eversource (ES)

Per the Zacks analyst, Eversource Energy's plan to invest $12.75 billion in next five years to strengthen its infrastructure will boost its performance.

New Upgrades

IQVIA Holdings (IQV) Benefits From Solid Technological Suite

The Zacks Analyst likes the extensive range of technology solutions in the form of cloud-based applications and related services.

CyberArk (CYBR) Benefits From Strategic Buyouts & Deal Wins

Per the Zacks analyst, CyberArk is benefiting from its strategic acquisitions like Conjur and Vaultive. Moreover, deal wins in new as well as add-on business mostly from advisory firms are a tailwind.

Rise in Used Vehicle Sales Drives Group 1 Automotive (GPI)

Per the Zacks Analyst, strong business execution of used vehicles and aftersales units, especially in the U.S. market segment, is driving Group 1 Automotive's sales and profits.

New Downgrades

Industry Woes, Lower Demand to Hurt Hasbro's (HAS) Revenues

Per the Zacks analyst, the bankruptcy of Toys "R" Us and soft consumer demand will negatively impact Hasbro's revenues and operating profit in the near term.

High Costs, Concentration Risk Hurt E*TRADE Financial (ETFC)

Per the Zacks analyst, consistently rising expenses due to growing franchise hurt E*TRADE Financial's bottom line. Also, interest-based revenue streams, as a key source of income, pose a concern.

High Debt Level, Escalating Expense Hurt CNO Financial (CNO)

Per the Zacks analyst, its rising debt level leading to interest expenses continues to be a financial risk.

undefined undefined
The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
Equinix, Inc. (EQIX) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research