Top Analyst Reports for Disney, Charter Communications & Monsanto
Monday July 3 2017
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 Disney (DIS), Charter Communications (CHTR), and Monsanto (MON).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 >>>
Disney’s shares have outperformed the Zacks Media Conglomerates sector over the last one year, gaining +10.3% vs. +7.4%, driven by the blockbuster performance of its movies and its vibrant Parks & Resorts division. The Zacks analyst likes its impressive lineup of big budget movies up to 2018. Further, it is focused on deploying capital towards expansion of the Parks and Resorts business to create long-term growth opportunities. But over the last few quarters, Disney has been weighed down by concerns about ESPN whose future growth has been clouded by the evolving media landscape as a result of 'cord cutting' and the steady migration of subscribers to online and digital platforms. Identical to performances in the past few quarters, ESPN disappointed in the second quarter again.
(You can read the full research report on Disney here >>>).
Shares of Charter Communications outperformed the Zacks Cable TV industry over the past three months (+1.7% vs. -2.4%), buoyed by the buyout of Time Warner Cable and Bright House Networks. The Zacks analyst is particularly optimistic about these acquisitions since they have boosted the company's fiber suite, bottom line and free cash flow. Following the buyouts, the company launched a new Spectrum TV app to unite the viewing experience of these two big cable companies on a single podium. Charter Communications is also planning to execute field trials for 5G wireless network and plans to enter the U.S. wireless industry in collaboration with Comcast. However, the company operates in the saturated and competitive multi-channel U.S. video market which, along with high debt levels, is a major concern.
(You can read the full research report on Charter Communications here >>>).
Monsanto’s shares have outperformed the Zacks Agricultural/Products industry over the last three months, gaining +3% vs. +2.5%. The company reported better-than-expected third-quarter fiscal 2017 results. The Zacks analyst thinks increasing demand for crop-yield enhancing products, stronger innovation and success of Bayer’s buyout deal will bolster Monsanto’s top- and bottom-line performance in the quarters ahead. However, stiff rivalry within the seeds, traits and agricultural chemical industry exposes the company to risks of market share loss. Moreover, a stronger U.S. dollar or weaker pricing conditions might weigh over the company’s near-term results.
(You can read the full research report on Monsanto here >>>).
Other noteworthy reports we are featuring today include PNC Financial (PNC), T-Mobile (TMUS) and M&T Bank (MTB).
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Sheraz Mian
Director of Research
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
Disney's (DIS) Movies, Parks & Resorts Units to Fuel Growth
Mobile Venture Aids Charter (CHTR), Pay-Tv Remains a Concern
Bayer Buyout to Boost Monsanto (MON), Pricing Woes Ail
Featured Reports
Enbridge's (EEP) Debt Load Mars High Distribution Yield
While the Zacks analyst likes Enbridge's attractive distribution yield and its diversified business portfolio with minimal commodity exposure, the partnership's high leverage is a matter of concern.
Nielsen (NLSN) New Products Drives Revenues; Investments A Risk
The covering analyst believes that Nielsen's continuous product launches related to digital ad ratings should drive revenues in the near term.
Cincinnati Financial (CINF) Grows on Strong Capital Positon
Per Zacks analyst, Cincinnati Financial's low leverage, ample capital, consistent cash flow generation, favorable reserve release should drive growth.
Loan Growth Aids M&T Bank (MTB), High Personnel Costs a Woe
The covering analyst believes that M&T Bank's increasing loans and deposits balances will get a boost from an improving economy.
Veeva Systems (VEEV) Rides on Commercial Cloud Platform
Per the Zacks analyst, Veeva Systems is on track with its commercial cloud platform, which registered multiple contract wins around the world.
Lindsay (LNN) to Grow on Stabilizing U.S. Irrigation Market
The covering analyst expects stabilization in the U.S. irrigation equipment market, recovery in Brazil & increased activity in developing international markets will drive Lindsay Corporation's growth.
American Water Works (AWK) Gains from New Rates & Acquisition
The Zacks analyst thinks the company gains from new water rates, which increased annual revenue.
New Upgrades
Exelixis (EXEL) Cabometyx Solid, Label Expansion in Focus
Exelixis received a major boost with the FDA approval of Cabometyx. Per the Zacks analyst, Exelixis efforts to expand the drug's label for first-line kidney cancer will boost the growth prospects.
CIP Goals Aid PNC Financial's (PNC) Operating Efficiency
Per the Zacks analyst, PNC Financial's efforts to drive operational efficiency through CIP goals remain encouraging. Further, recent approval of 2017 capital plan depicts financial stability.
Mohawk's (MHK) Acquisitions, Innovations to Drive Growth
The covering analyst remains encouraged by Mohawk's investments in ceramics related buyouts in 2017 and innovative products.
New Downgrades
High Debts Could Hurt FirstEnergy (FE) Despite Rate Hikes
The Zacks analyst believes despite rate hikes, the high debt to capital ratio of 74.3% could adversely impact the prospects of the company amid the rising interest rates.
Competitive, Saturated Wireless Industry Ails T-Mobile (TMUS)
Per the Zacks analyst, T-Mobile US' operation in a competitive and saturated wireless market, where success depends on technical superiority, quality of services and scalability, remains a concern.
Paychex (PAYX) Sales Hurt by Lower Payroll Client Retention
Per the covering analyst, a challenging demand environment, lower client retention and political uncertainty, may continue to adversely impact Paychex's revenue growth in the near term.
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