Monday April 17, 2017
Today's Research Daily features new research reports on 16 major stocks, including Alphabet (GOOGL), Amgen (AMGN), and Lowe’s (LOW).
Alphabet shares led the Zacks Tech sector at the start of the year, but have lagged since the weaker than expected quarterly report on January 26th (the stock is up +7.9% in the year-to-date period vs. +7.1% for the Tech sector). The stock responds strongly to quarterly earnings reports and has been weak following the last two reports, so expectations are modest ahead of the April 27th earnings release. The company is expected to earn $7.24 per share on $19.7 billion in revenues, up +20.3% and +19.3% from the year-earlier period, respectively. The Zacks analyst points out the company's good execution to date, more or less maintaining its dominant share in the competitive, fast-growing search market. The company's focus on innovation, strategic acquisitions and Android OS should continue to generate strong cash flows. However, the promise of Google's non-search businesses continue getting pushed into future even as the company's spending keeps rising. (You can read the full research report on Alphabet here >>>)
Amgen shares struggled last year, but came back strong following the election as fears of restrictive pricing and regulatory strictures eased. The stock has been down in a big way since March 1st, but has still done better than the peer group over the past year. The Zacks analyst points out that Amgen remains well positioned for growth with several blockbuster drugs in its portfolio. Amgen’s growth products – Prolia, Xgeva, Vectibix, Nplate and Sensipar – are all performing well. Additionally, Amgen’s restructuring plan should make it leaner and more cost efficient. Estimates have declined lately ahead of the company’s Q1 earnings release. The company has a positive record of earnings surprises in the recent quarters. (You can read the full research report on Amgen here >>>)
Lowe’s shares have outperformed the Zacks Building Products - Retail industry over the last three months, gaining +13.6% vs. +7.9%. An improving jobs picture, gradual recovery in the housing market and merchandising initiatives along with efforts to provide better omni-channel customer experience bode well for Lowe’s. It also remains well positioned to reap the benefits of strategic acquisitions done earlier. Better-than-expected results in the final quarter of 2016 prompted management to provide an encouraging outlook for fiscal 2017. However, the Zacks analyst thinks stiff competition and cannibalization still remain major concerns. Of late estimates have been stable. (You can read the full research report on Lowe’s here >>>)
Other noteworthy reports we are featuring today include Bristol-Myers (BMY), EOG Resources (EOG) and Priceline (PCLN). You can see all of today's research reports here >>>
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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
Alphabet (GOOGL) Mired in Ad Controversy and Legal Hassles
Amgen's (AMGN) New Drugs Doing Well; Headwinds Remain
Lowe's (LOW) Strategic Efforts Bode Well for the Long Run
United (UAL) to Refund 3411 Flight Passengers for Fiasco
The passenger debacle issue is a huge negative for the company. The Zacks analyst believes that the bottom line in Q1 will be hurt by increased costs.
Bristol-Myers' (BMY) Key Drugs Perform Well; Hit by Generics
Bristol-Myers' key drugs like Opdivo, Orencia, Sprycel and Eliquis continues to perform well. However, generic threats for many of its products might affect top-line, believes the Zacks analyst.
EOG Resources' (EOG) Production Prospects Look Bright
The covering analyst believes that EOG Resources' acreages in prospective oil U.S plays will contribute to output growth in the long run. However, volatile crude remains an overhang on the stock.
Travelers' (TRV) Inorganic Growth Impresses, Cat Loss a Drag
The covering analyst believes that Travelers continues to enhance its inorganic growth through prudent acquisitions and effective capital deployment.
Priceline's (PCLN) Market Position Solid, Weak ADR a Concern
The Zacks analyst thinks Priceline's strong position in international markets and prudent marketing are positives.
Carnival (CCL) Looks Poised for Growth Post Q1 Earnings
Despite macroeconomic and forex headwinds, Carnival remains well positioned for continued earnings growth, given the strength in bookings and pricing trends for the year, per the covering analyst.
Prudential's (PRU) Diverse Business Operations to Fuel Growth
The Zacks analyst believes that Prudential's high performing asset business and diversified international operations will pave the way for long-term growth.
Nucor (NUE) Well Poised on Acquisitions, Expansion Actions
The Zacks analyst is impressed by Nucor's Q1 view and believes it should gain from strong automotive demand, efforts to expand its production capabilities and grow its business through acquisitions.n
Rayonier (RYN) Expands Through Timberlands Acquisitions
Rayonier inked 3 deals for the purchase of 95,100 acres of industrial timberlands. The covering analyst thinks the company is raising its presence in South coastal Atlantic markets through this move.
Amedisys' (AMED) Strategic Buyouts, New Prospects Add Value
The Zacks analyst thinks Amedisys is steadily trending up and trading above the broader industry on initiatives like exploring new prospects and expansion through strategic buyouts and partnerships.
Weather and Compliance Could Mar WEC Energy's (WEC) Good Run
The Zacks analyst believes despite WEC Energy's ongoing investments in infrastructure projects regulatory compliance costs, weather fluctuations and functional disruptions may affect the good run.
Microsoft (MSFT) Down On Intensifying Competition for Azure
According to the covering analyst, Microsoft Azure is facing significant competition from the likes of Amazon Web Services (AWS) and salesforce.com in the enterprise SaaS market, which is a headwind.
TransDigm (TDG) Hit By Rising Costs, Negative Publicity
TransDigm has been hurting from rising interest expenses and debt burden. Going forward, impending government probe on its business practices and negative industry trends are likely to thwart growth.
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The Priceline Group Inc. (PCLN): Free Stock Analysis Report
Lowe's Companies, Inc. (LOW): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
EOG Resources, Inc. (EOG): Free Stock Analysis Report
Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
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