Top Analyst Reports for Occidental Petroleum, HP & Anthem
Friday August 25 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 Occidental Petroleum (OXY), HP (HPQ) and Anthem (ANTM). 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 >>>
Occidental Petroleum shares have suffered this year, as have shares of all oil producers, to reflect the commodity's price slide and uneven outlook. That said, it has done better than its E&P peers (the stock is down -14.9% in the year-to-date period vs. -19.3% decline for the Zacks E&P industry), reflecting Occidental's strong position in the Permian basin and solid balance sheet. The company’s earnings per share and total revenues in the second quarter exceeded expectations.
The Zacks analyst likes the company’s stable cash flow generation and its attempts to reach cash flow breakeven at low oil prices. However, like other oil and natural gas companies, it faces the risks of cost overruns and development interruptions due to delays in drilling and other approvals, property or border disputes, and equipment failures.
(You can read the full research report on Occidental Petroleum here >>>).
Shares of HP have gained +32.7% year to date, underperforming the Zacks Minicomputers industry, which has gained +38.3% over the same period. However, HP recently reported stellar Q3 results. The Zacks analyst likes the performance of HP’s PC segment, which experienced a year-over-year improvement due to growth in Commercial and Consumer revenues.
HP’s efforts to turn around the business have been commendable. The company is working on product innovation, differentiation and enhancing the capabilities of its printing business to stabilize the top line. Nevertheless, pricing pressure due to intense competition remains a major concern. A tepid IT spending environment also adds to its woes.
(You can read the full research report on HP here >>>).
Anthem’s shares have gained +57.1% over the last one year, outperforming the Zacks HMO industry’s increase of +43.3%. The Zacks analyst likes the company’s diverse product portfolio, which has helped in improving underwriting results. Anthem’s strategic acquisitions, divestures and ACO arrangements are expected to pave the way for long-term growth. Its rising level of medical membership continues to boost the top line.
The company’s strong capital position backs effective capital deployment. Followed by strong results in first half of 2017, the company has raised earnings and revenue guidance for 2017. However, the company’s high-debt level poses financial risk. The company’s weak public exchange business is another worry.
(You can read the full research report on Anthem here >>>).
Other noteworthy reports we are featuring today include Medtronic (MDT), Markel (MKL) and Ulta Beauty (ULTA).
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without.
More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really take off.
See Stocks Now>>
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
Occidental (OXY) Gains From its Focus on Permian Resources
HP's (HPQ) Product & Marketing Initiatives to Drive Growth
Anthem's (ANTM) Growing Membership Aids Revenues, Debt Hurts
Featured Reports
Perrigo's (PRGO) Focus on OTC Bodes Well, Competition Stiff
Per the Zacks analyst, Perrigo's constant focus to pursue branded OTC opportunities in the U.S. market is encouraging. However, competitive pressure in the RX Segment may hurt topline in near term.
Plains All American (PAA) Gains from New Projects
The Zacks analyst believes that Plains All American is benefiting from new projects like Diamond Pipeline, the STACK expansion and Cushing Terminal Expansion etc.
Arch Capital (ACGL) Grows on Expanding Mortgage Insurance
Per the Zacks analyst, Arch Capital is set to grow on expansion of its U.S. Mortgage Insurance business. However, escalating expenses weigh on margin expansion.
Omnichannel Strength to Drive Ulta Beauty's (ULTA) Top-Line
Per the Zacks analyst, Ulta Beauty's focus on omnichannel efforts remains a major growth driver. Notably, e-commerce sales rose 72.3% in the second quarter, and is likely to jump 50-60% in the fiscal.
Hyatt (H) Banks on Expansion & Miraval Buyout, Europe a Risk
The Zacks analyst expects Hyatt's differentiated brands, expansion plans and Miraval purchase to spur growth. However, post-Brexit woes may hurt revenues, given Hyatt's significant presence in Europe.
Markel (MKL) Set to Grow on Strength of Insurance Business
Per the Zacks analyst, Markel is poised to benefit from its performance of insurance, investments, and positive contributions from Markel ventures.
Federal Realty (FRT) Gains From Portfolio Redevelopment Move
Per the Zacks analyst, Federal Realty's premium retail assets, diverse tenant base and redevelopment efforts position it well for decent growth.
New Upgrades
Guess? (GES) Benefits From Retail Growth in Europe & Asia
Per the Zacks analyst, Guess? is gaining from store openings, increased sales and comps in its Europe and Asia segments. The company is also undertaking supply chain initiatives to boost profits.
American Financial's (AFG) Capital Deployment Impresses
Per the Zacks analyst, American Financial's inorganic growth profile, price increase in property and casualty business and prudent capital deployment (hiked dividend by 12%) poise it well for growth.
RBC Bearings (ROLL) to Grow on Aerospace & Industrial Sales
The Zacks analyst believes robust demand in the aerospace and industrial end markets, as well as effective integration of the Sargent business will boost RBC Bearings' near-term results.
New Downgrades
CenturyLink (CTL) Hurt by Persistent Access Line Losses
Per the Zacks analyst, CenturyLink's core local phone business has slowed down significantly due to persistent losses in its access lines owing to the substitution of wireline services by wireless.
Medtronic (MDT) Hit by Soft Margins, Currency Woes to Stay
The Zacks analyst is bearish about Medtronic's distressed margins on the back of increased pricing pressure and rising sales and marketing costs. Currency headwind remains.
Hill-Rom's (HRC) Volker Selloff May Weigh on Top line in 4Q
The Zacks analyst is bearish about Hill-Rom's upcoming divestiture of Volker in fiscal 4Q and dull international revenue outlook. These factors are expected to reduce top line significantly in 4Q.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
Markel Corporation (MKL) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
Anthem, Inc. (ANTM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
