Top Research Reports for Home Depot, U.S. Bancorp & Alibaba
Wednesday, August 16, 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 Home Depot (HD), U.S. Bancorp (USB) and Alibaba (BABA).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 >>>
Home Depot's shares are up +10.3% over the last one year, matching the Zacks Retail sector (also up +10.3%) and marginally behind the broader market (S&P 500 up +12.7%) in that same time period. The company has been consistently gaining from its interconnected strategy, focus on Pro customers, and housing market recovery. These factors helped the company post a stellar second-quarter fiscal 2017 performance, which marked its highest ever quarterly sales and earnings.
Pro category sales continued to outperform, driven by constant efforts to enrich customers’ experiences. The sturdy first half performance and expectations of improved home prices encouraged the company to raise its fiscal 2017 view. However, gross margin remains plateaued, and is likely to fall 10 bps in fiscal 2017. Also, competition from online retailers may impact results.
(You can read the full research report on Home Depot here >>>).
Shares of U.S. Bancorp have underperformed the Zacks categorized Major Regional Banks industry over the last one year, gaining +22.6% vs. +34.2%. The company’s second-quarter 2017 earnings outpaced the Zacks Consensus Estimate. High interest income was recorded on rising rates. Increased average loans and deposits balances reflect organic growth.
But the Zacks analyst thinks the company’s prospects will likely get support from its solid business model, core franchise and diverse revenue streams. Additionally, the approval of Financial Choice Act is anticipated to support U.S. Bancorp’s profitability moving ahead. Notably, the bank received the Fed's approval for its 2017 capital plan. However, escalating expenses and litigations remain key concerns.
(You can read the full research report on U.S. Bancorp here >>>).
Alibaba's shares have outperformed the broader market as well as the peer e-commerce space over the last year (it is up more than +62.7%), with the trend expected to remain in place given continued growth in its core e-commerce business and growing cloud computing services. The company’s fiscal fourth-quarter results exceeded expectations on revenues but lagged the same on earnings.
The Zacks analyst likes 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 >>>).
Other noteworthy reports we are featuring today include CME Group (CME), Manulife (MFC) and Amphenol (APH).
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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
Pro Customer Strategy to Lift Home Depot's (HD) Margins
Loan Growth Aids U.S. Bancorp (USB), Technology Costs a Woe
Rising Expenses Weighs on Alibaba's (BABA) Grocery Push
Featured Reports
High Pension Costs Mar International Paper (IP) Margins
Per the Zacks analyst, International Paper is undergoing restructuring initiatives to transform itself into a core packaging firm, although high pension obligations remain a significant headwind.
Currency Woes Ruin Amphenol's (APH) Improved Demand Pattern
Per the Zacks analyst, Amphenol's improved end market demand and new product rollouts are likely to be offset by high raw materials costs and unfavorable foreign currency movements.
New Business Growth in Asia Continues to Aid Manulife (MFC)
Per the Zacks analyst, new business growth at Manulife's Asia unit, fueled by improved product mix and scale benefits, will continue to boost core earnings growth.
Apache (APA) Aided by Canadian Exit, Alpine High Discovery
The Zacks analyst likes Apache's promising Alpine High discovery and the exit from the high-cost Canadian operations but is concerned over the continued uncertainty over oil prices.
TELUS (TU) to Gain from Recently Acquired Wireless Spectrum
Per the Zacks analyst, TELUS' recently acquired spectrum from Canada's wireless spectrum auction will continue to complement its existing low band spectrum, thus boosting company's wireless business.
Derivative Product Lines Aid CME Group (CME), High Costs Ail
Per the Zacks analyst CME Group's emphasis on expansion of its derivative product lines will continue to drive growth.
Hasbro (HAS) Strong on Franchise Brands
Per the Zacks analyst, global digital content and novel offerings of Franchise Brands, strategic alliances and product launches should aid Hasbro.
New Upgrades
Strong Complete Vehicle Assembly Segment Drives Magna (MGA)
Per the Zacks analyst, the launch of the BMW 5-Series at the assembly facility in Graz, Austria, is boosting the performance of the Complete Vehicle Assembly Segment. This, in turn, is aiding Magna.
Xerox (XRX) Buoyed by Cost Savings from Business Splits
Per the Zacks analyst, incremental savings from business splits and disciplined investments in attractive growing markets are likely to drive Xerox's bottom line in the future.
Stratasys (SSYS) Rides on Multiple 3D Printing Partnerships
Per the Zacks analyst, Stratasys' sustained focus on launching new products and strategic 3D printing partnerships with the likes of Airbus and Boeing will drive long-term growth.
New Downgrades
Spirit Airlines (SAVE) Stung by Pilot Row, Pricing Pressure
The Zacks analyst is concerned about the dispute with its pilots, which are expected to hurt its Q3 results as well. The volatile pricing environment is also a major headwind for the company.
Qorvo (QRVO) Battered by Lower China Demand, Higher Expenses
According to the Zacks analyst, weak near-term demand in China and increasing higher research & development expenses related to custom product development for largest customers hurts Qorvo.
American Public (APEI) Battered by Soft Enrollment Trend
The covering analyst stresses that American Public's revenues are being hurt by persistent volatility and softness in enrollment by students using federal student aid and military tuition assistance.
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U.S. Bancorp (USB) : Free Stock Analysis Report
Manulife Financial Corp (MFC) : Free Stock Analysis Report
Home Depot, Inc. (The) (HD) : Free Stock Analysis Report
CME Group Inc. (CME) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
Amphenol Corporation (APH) : Free Stock Analysis Report
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