Top Research Reports for Cisco, AstraZeneca & Enbridge
Friday, August 17, 2018
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 Cisco Systems (CSCO), AstraZeneca (AZN) and Enbridge (ENB). 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 >>>
Cisco's shares have outperformed the Zacks Computer Networking industry year to date, gaining +17.9% vs. +16.5%. Cisco is an IP-based networking company that reported stellar fourth-quarter results. Also, both revenues and earnings increased year over year.
Strength witnessed in company’s Security and Applications segments drove year-over-year growth. Order strength and improving traction of the subscription-based model were other tailwinds. Strong contribution from acquisitions, security, Infrastructure Platforms and applications remains a positive.
A strengthening collaboration portfolio, which now includes Webex Teams and AI-based Accompany bodes well. Partnerships with Telenor, Apple, IBM, Microsoft and Google Cloud are positive. Divestiture of a portion of Cisco’s NDS video assets is likely to mitigate the sluggishness witnessed in other product segment.
However, weakness in switching and routing is a headwind. Ongoing transition to subscription-based model will continue to hurt the top line.
(You can read the full research report on Cisco here >>>).
AstraZeneca’s shares have gained +9.4% year to date, outperforming the Zacks Large Cap Pharmaceuticals sector which has gained +3.9% over the same period. AstraZeneca beat estimates for both earnings and sales in Q2. Its core products like Nexium, Crestor and Seroquel are facing generic competition, which is hurting sales.
The diabetes franchise also faces stiff competition while pricing pressure is hurting sales in the Respiratory franchise. Nonetheless, AstraZeneca is one of the key players in the global cardiovascular market. AstraZeneca’s newer drugs like Lynparza, Tagrisso and Brilinta should keep contributing to revenues.
Several launches are underway across each of the therapeutic areas, Oncology, CV metabolism and Respiratory. Meanwhile, cost-cutting efforts should drive earnings. AstraZeneca also has a promising late-stage pipeline that includes immuno-oncology candidates. Imfinzi is a key drug in the pipeline. AstraZeneca announced quite a few positive developments on the regulatory and pipeline front this year.
(You can read the full research report on AstraZeneca here >>>).
Shares of Enbridge have declined -11.4% over the past year, underperforming the Zacks Oil Production and Pipeline industry’s loss of -4% during the same period. Enbridge has the longest and most sophisticated crude and liquids pipeline system in the world that spreads over 17,018 miles.
The Zacks analyst appreciates the merger with Spectra Energy as it has made Enbridge the largest North American energy infrastructure player. The company’s huge backlog of growth projects that stands at roughly C$22 billion along with the C$12 billion worth midstream projects that are online will help it drive dividend by 10% annually through 2020.
Enbridge’s second-quarter 2018 earnings and revenues increased year-over-year, owing to higher throughput volumes from the Canadian Mainline and Lakehead System along with higher income from all of the company's business units and synergy benefits from the acquisition of Spectra Energy. However, the firm’s significant exposure to debt is a matter of concern.
(You can read the full research report on Enbridge here >>>).
Other noteworthy reports we are featuring today include Lockheed Martin (LMT), Marathon Petroleum (MPC) and SAP SE (SAP).
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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
Cisco (CSCO) Rides on Security Products & Strategic Deals
AstraZeneca (AZN) New Drugs to Drive Sales Amid Generic Woes
Enbridge's (ENB) C$22B Project Backlog to Offset Debt Load
Featured Reports
Order Growth Aids Lockheed Martin (LMT) Amid Steep Rivalry
Per the Zacks analyst, order inflow from Pentagon and foreign allies of the United States boosts Lockheed Martin's growth. Yet, it faces steep competition from peers in the aerospace-defense space.
Business Transformation Aids AptarGroup (ATR) Amid Inflation
Per the Zacks Analyst, AptarGroup will gain from transformation activities in Beauty + Home segment and product roll outs.
Network Expansion Drives T-Mobile (TMUS) Amid Spectrum Woes
Per the Zacks analyst, roll-out of 600 MHz wireless spectrum and Narrowband-IoT tests bolster T-Mobile's progress on 5G network.
Markel's (MKL) Premium Growth Impresses, High Costs Ail
Per the Zacks analyst, solid segmental performance as well as reinsurance, will continue to fuel premium growth for Markel. However, rising expenses raise concern.
Cost Savings Strategy Aids Deutsche Bank (DB) Amid Low Rates
Per Zacks Analyst, Deutsche Bank's cost-savings efforts to drive efficiency are encouraging and might neutralize impact of high legal costs, going forward.
Health Care Services Aid Fresenius (FMS), Competition Rife
Per the Zacks analyst, Fresenius Medical gains ground on core Health Care Product and Services units.
Brinker (EAT) Fights High Costs With Sales Building Efforts
The Zacks analyst sees Brinker's sales-building efforts like menu innovation, development of digital platforms & continual expansion as tactics to fight high costs associated with restaurant operation.
New Upgrades
New Generic Approvals To Boost Dr. Reddy's (RDY) Prospects
Per the Zacks analyst, new generic approvals has boosted Dr. Reddy's growth prospects. The company is also making efforts to strengthen its biosimilar portfolio/pipeline.
PVH's (PVH) Brand Management Initiatives to Drive Growth
Per Zacks analyst, PVH's approach to brand management aids in developing its brands via efficient marketing strategy, financial control and operating leverage. This positions it for long term growth.
Marathon Petroleum (MPC) to Gain from Strong Fuel Margins
The Zacks analyst believes that Marathon Petroleum's geographically advantaged refining assets will help the company benefit from the stronger fuel margins and cheaper feedstock costs.
New Downgrades
Stericycle (SRCL) Grapples With Pricing Pressure, High Debt
The Zacks analyst is worried about the continuous threat of pricing pressure that Stericycle faces in the competitive waste collection and disposal business. High debt is another major concern.
Increasing Investments Amid Stiff Competition Hurt SAP
Per the Zacks analyst, SAP's increasing investments in standardized converged S/4HANA platform will limit margin expansion. Further, stiff competition in most of the markets is a major concern.
Aging Water Infrastructure Ails American States Water (AWR)
The Zacks analyst believes American States Water's aging water infrastructure increases the possibility of failure and contamination of water.
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SAP SE (SAP) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
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