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Top Research Reports for Disney, Kraft Heinz & CVS Health

Mark Vickery
Top Research Reports for Disney, Kraft Heinz & CVS Health

Tuesday, September 12, 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), Kraft Heinz (KHC) and CVS Health (CVS). 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 underperformed the Zacks Media Conglomerates industry over the last three months, declining -7.9% vs. -6.2%, primarily due to ongoing concerns regarding ESPN’s future. Identical to its performances over the past few quarters, ESPN results disappointed in the third quarter yet again.

However, the Zacks analyst likes the company’s decision to terminate its distribution agreement with Netflix for subscription streaming and launch its own streaming services – one for Disney and Pixar brands and another for ESPN followers. Further, in an effort to attract online viewers, Disney which had earlier acquired 33% stake BAMTech announced its intention to acquire another 42% stake in the firm. Moreover, its Movies and Parks & Resorts businesses look promising. Disney also boasts of an impressive lineup of big budget movies up to 2018.

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

Shares of Kraft Heinz have declined -3.4% year to date, outperforming the Zacks Diversified Food industry which is down -6.3% during the same period. Strong brand portfolio, cost savings initiatives, innovation and marketing efforts raise growth prospects for the company. Though the company’s net sales have been relatively soft, cost savings have led to better results in the second quarter financial results.

The Zacks analyst stresses that soft spending by U.S. shoppers and shift in consumer preference toward natural and organic ingredients over packaged and processed food are hurting the company’s categories.

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

CVS Health’s shares have outperformed the Zacks Drug Stores industry year to date gaining +3.5% vs. a decline of -1.4%. The Zacks analyst likes the company’s solid 2017 PBM selling season and is also confident about the company's 2018 selling season, which is already off to a strong start. Moreover, the Omnicare and Target Pharmacy buyouts should drive enterprise value significantly in the days ahead.

However, poor year-over-year Retail/LTC numbers along with margin debacle resulted in a dull earnings performance by the company in the quarter. Despite an unimpressive bottom-line scenario the company has raised the lower-end of its earnings outlook for 2017 raising investors’ optimism. (You can read the full research report on CVS Health here >>>).

Other noteworthy reports we are featuring today include Shire (SHPG), Intercontinental Exchange (ICE) and Ventas (VTR).

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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

Disney's (DIS) Streaming Services to Offset ESPN Woes

Kraft Heinz (KHC) Strong on Cost Savings and Innovations

CVS Health (CVS) Rides on Strong PBM Growth amid Retail Woes

Featured Reports

Shire (SHPG) Dominant in ADHD Segment; Generic Threat Looms

The Zacks analyst says that Shire's recent acquisitions and approval is likely to boost Shire's ADHD segment dominance.

Alliant Energy (LNT) Gains From New Rates, High Debts Ail

The Zacks analyst believes Alliant Energy will continue to benefit from its regulated operations and new rates.

Surge in Online Sales, HSN's Buyout to Boost Liberty (QVCA)

Per the Zacks analyst, Liberty Interactive should benefit from the surge in online sales and buyout of HSN Inc. However, its businesses remain susceptible to rapid technological changes.

Engine Products' Momentum to Fuel Growth at Donaldson (DCI)

Per the Zacks analyst, Donaldson is enjoying strong momentum in Engine Products business and aftermarket sales. However, its revenues remain vulnerable to prolonged weakness in the gas turbine market.

Ventas (VTR) to Gain from Life Science Assets and SNF Sale

Per the Zacks analyst, Ventas' life-science real estate investments and lowering of skilled nursing facilities' exposure bode well for growth.

Amerisource (ABC) Strong on Generics, PharMEDium a Concern

The Zacks analyst likes Amerisource's generics portfolio, new launches and accretive acquisitions. However, a temporary slowdown in PharMEDium's growth would mar AmerisourceBergen's bottom line.

Energy Transfer (ETP) To Grow On Sunoco Merger, Debt Ails

While Energy Transfer Partner's merger with Sunoco will lead to several cost and commercial synergies in the near future, the Zacks analyst is concerned about high leverage which will limit growth.

New Upgrades

Strong Automotive Demand, Cost Cuts Drive Arconic (ARNC)

The Zacks analyst thinks Arconic is well placed to gain from solid demand in the automotive space. Its efforts to cut operating costs and boost productivity should also drive its margins in 2017.

Hollister Brand Strength to Aid Abercrombie's (ANF) Top-Line

Per the Zacks analyst, Abercrombie has been gaining from solid sales at Hollister. Notably, Hollister comps rose 5% in the second quarter. The trend is expected to improve further in fiscal 2017.

Zumiez's (ZUMZ) Positive Comps Trend to Aid Q3 Performance

Per the Zacks analyst, Zumiez's comps continue to grow in September with comps up 8.3% so far in third quarter, after a solid second-quarter. This led it to issue a robust outlook for third quarter.

New Downgrades

Alaska Air Group (ALK) Stung by Increased Expenses

The Zacks analyst is concerned about the rise in labor and fuel costs, which should limit bottom-line growth. Costs related to the acquisition of Virgin America are also hurting the earnings picture.

WPP (WPPGY) Plagued by Severely Curtailed Advertising Budgets

Per the Zacks analyst, WPP is plagued by curtailed advertising budgets due to economic fragility owing to Brexit, political instability in the Middle East and a slowdown in the Chinese economy.

Operating Costs Continue to Hurt Intercontinental (ICE)

Per the Zacks analyst, escalating operating expenses, due to higher debt and integration expenses and compensation and benefits costs, will continue to hurt Intercontinental Exchange's overall growth.

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Ventas, Inc. (VTR) : Free Stock Analysis Report
Shire PLC (SHPG) : Free Stock Analysis Report
The Kraft Heinz Company (KHC) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
Walt Disney Company (The) (DIS) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
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