Top Research Reports for Alibaba, Aetna & 21st Century Fox

Monday, December 4, 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 Alibaba (BABA), Aetna (AET) and 21st Century Fox (FOXA). 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 >>>

Buy-rated Alibaba’s shares have outperformed the Zacks Electronic Commerce industry, on a year-to-date basis, gaining +98.8% vs. +58.1%. Alibaba's solid growth in the company’s core e-commerce business, strong growth in metrics and international strength help it to generate significant revenues. Other drivers include strong mobile strength.

The Zacks analyst likes Alibaba’s strong core e-commerce business, its continued efforts to develop new products, international growth opportunities, strong financial position and growing cloud computing services. However, macro headwinds, continued investments and increasing competition from Tencent Holdings and Baidu remain the overhangs.

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

Shares of Aetna have outperformed the Zacks Health Maintenance Organization industry year to date, increasing +46.2% vs. a gain of +44.1%. The recent agreement on the acquisition of the company by CVS Health seems to be grand opportunity for the former. This is because this buyout is expected to aid Aetna to expand its scale and size, which in turn would help the company to negotiate with drug manufacturers and pharmacies in an improved manner.

The deal should bring significant earnings growth, which has been hurt by a number of headwinds. These headwinds include increase in medical benefit ratio, pressure on membership, Medicaid contract loss and exit of individual commercial business on public exchanges. Nevertheless, its strong capital position would enable share buybacks that should provide a cushion to the bottom line. Also, cost control efforts are anticipated to aid the margins.

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

21st Century Fox’s shares have increased +16.8% over the last year, outperforming the Zacks Film and Television industry, which has gained +15.1% over the same period. The company continues to impress investors with its positive earnings surprise for the sixth straight quarter, when it reported first-quarter fiscal 2018 results.

The quarter also marked its second successive revenue beat, wherein both the top and bottom line grew year over year. The company’s impressive performance was driven by robust affiliate revenues across the Cable Network Programming and Television segments. Higher content revenues at the Filmed Entertainment segment also contributed.

Despite these tailwinds, elevated programming costs remain a cause of concern. Increase in expenses may dent margins and in turn the bottom line. Further, the company’s proposed acquisition of remaining 61% stake in Sky plc hit a roadblock after U.K. Culture Secretary Karen Bradley demanded a detailed review from the Competition and Markets Authority.

(You can read the full research report on 21st Century Fox here >>>).

Other noteworthy reports we are featuring today include Adobe (ADBE), Public Service Enterprise Group (PEG) and Pioneer Natural Resources (PXD).

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>

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

Alibaba (BABA) Drives On New Investments & Cloud Growth

Medicare Business Aids Aetna (AET), Low Membership Hurts

21st Century Fox (FOXA) Rides on Cable Network Programming

Featured Reports

CapEx Plan Aids Public Service Enterprise (PEG), Costs Hurt

Per the Zacks analyst, huge investment plan enables Public Service Enterprise to upgrade and expand its operations. Yet it has to incur significant compliance costs to abide by environmental rules.

Pioneer's (PXD) Permian Focus Offsets High Exploration Costs

The Zacks analyst believes that concerns generated by Pioneer's high exploration expenses will be offset by the company's focus on lucrative Permian Basin.

Fleet Upgrade Buoys Allegiant (ALGT), High Costs Ail

The Zacks analyst likes the company's efforts to upgrade its fleet. Increased labor and fuel costs, however, are hurting the bottom-line.

TOP Efficiency Initiatives Support Citizens Financial (CFG)

Per the Zacks Analyst, Citizens Financial's "Tapping Our Potential" (TOP) initiatives are expected to boost revenues and efficiency.

Trimble (TRMB) Benefits from Buyouts, Europe A Concern

The Zacks analyst believes that Trimble's acquisition strategy, product enhancements, along with its re-aligned cost structure are positives.

Expedia (EXPE) Rides on SilverRail Buyout, Competition Rife

The Zacks analyst believes that Expedia's buyout of SilverRail will lead to increased penetration in existing markets and expansion in others.

InvisAlign Prospects in Global Teen Market Aids Align (ALGN)

The Zacks analyst is impressed with soaring demand for Align's InvisAlign products in the teen market worldwide.

New Upgrades

Permian Expansion, Sandbox Buyout Drive U.S. Silica (SLCA)

The Zacks analyst thinks the company should gain from its expansion initiatives in the fast-growing Permian Basin. The Sandbox acquisition should also drive margins in 2017.

Adobe (ADBE) Benefits from TubeMogul Acquisition

The Zacks analyst believes that the acquisition of TubeMogul is helping Adobe to expand its offerings and strengthen its foothold in the digital marketing space.

Pepsi's (PEP) Productivity Improvement Plans to Spur Growth

The Zacks analyst believe Pepsi's aggressive marketing, new product lineup, productivity improvement and cost-saving initiatives should give a boost to profits.

New Downgrades

Failed Biosimilar Orencia Study Setback for Momenta (MNTA)

Per the Zacks analyst, the failure of phase I study comparing the pharmacokinetics, safety and immunogenicity of M834 to Orencia Bristol-Myers arthritis drug Orencia was a major setback for Momenta.

Synopsys' (SNPS) Rising Costs a Threat to Near-Term Profits

Per the Zacks analyst, though Synopsys' sustained focus on introducing products and acquisitions will drive revenues, escalating expenses will hurt its margins and profitability in the near term.

MarketAxess' (MKTX) Margins Suffer From Escalating Expenses

Per the Zacks analyst increasing expenses have weighed on the company's margins and the same are expected to rise over the coming quarters given its ongoing investments in business expansion.

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
 
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
 
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
 
Twenty-First Century Fox, Inc. (FOXA) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
Aetna Inc. (AET) : Free Stock Analysis Report
 
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
 
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