Tuesday, March 14, 2017
Today's Research Daily features new research reports on 16 major stocks, including Intel (INTC), Glaxo (GSK) and Schwab (SCHW).
Intel shares have gained only +1.2% since election results were announced on Nov 8, lagging the broader Tech sector (up +8.8%) as well as the red-hot semiconductors space (up +15.6%). Continued weakness in the PC space, greater competition from ARM-based chips and major customers like Google looking for alternatives are some of the headwinds for Intel. But the Zacks analyst sees the Data center business as promising. Further, growing clout in the Internet of Things (IoT) and autonomous driving market are key catalysts. The recently announced Mobileye acquisition will provide competitive edge in the autonomous driving technology market. (You can read the full research report on Intel here >>)
Buy rated Glaxo has outperformed the Zacks Large Cap Pharma sector in the past three months, gaining +9.3% vs a +6.6% increase. The Zacks analyst likes Glaxo’s diversified base and presence in different geographical areas as well as its efforts to develop its pipeline. The performance of new products as well as those acquired from Novartis is also encouraging. These should help support revenues and ease the impact of the loss of Advair sales. However, challenges remain in the form of increasing competition, genericization and pricing pressure, which will continue to impact the company’s performance. (You can read the full research report on Glaxo here >>)
Shares of Schwab have outperformed the Zacks Investment Brokers industry over the last three months, gaining +9% vs +3.7%. The Zacks analyst emphasizes that Schwab is well positioned to benefit from rising rate environment and plans to eliminate fee waivers subsequent to the next rate hike. Also, initiatives to strengthen trading income will support its profitability over the long term, despite the near-term revenue reduction. However, continuous rise in expenses remains a major concern. Significant dependence on fee-based revenue streams also provides cause for apprehension. (You can read the full research report on Schwab here >>)
Other noteworthy reports we are featuring today include Travelers (TRV), Marriott (MAR) and American Airlines (AAL).
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Director of Research
Note: Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Intel (INTC) Buys Mobileye for $15.3B to Boost Autonomous Driving
Glaxo (GSK) Q4 Results Strong; Advair Faces Generic Pressure
Schwab (SCHW) Focuses on Improvement in Trading Revenue
Marathon Oil (MRO) Q4 Loss Narrower than Expected
The Zacks analyst believes that Marathon Oil's better-than-expected Q4 results reflects its competitive cost structure and strong execution. However, volatile commodity prices remain an issue.
American Airlines (AAL) Trims Q1 Unit Revenue View
Though disappointed by American Airlines' bearish view on unit revenues in Q1, the covering analyst is impressed by its investor-friendly moves.
CSX Corp (CSX) Reaches Deal with Hedge Fund, Gets New CEO
The Zacks analyst appreciates the improving demand in the company's key markets like coal. Though positive on its restructuring efforts, failure to yield the desired results would hurt the stock.
Willis Towers (WLTW) Q4 Earnings Beat, Provides Guidance
Willis Towers' fourth-quarter 2016 earnings beat our expectations and also improved year over. Adjusted earnings per share is projected to range between $8.40 and $8.55 in 2017.
Travelers' (TRV) Inorganic Growth Impresses, Cat Loss a Woe
The covering analyst believes that Travelers will continue to boost its inorganic portfolio with strategic buyouts, while maintaining a solid capital position.
Clovis (CLVS) Q4 Loss Wider; Focus on Cancer Drug Rubraca
The Zacks analyst believes that Clovis' advanced ovarian cancer treatment, Rubraca has bright prospects, given the tremendous demand for PARP inhibitors.
TriMas (TRS) Tops Q4 Earnings; Organic Growth Remains Strong
The Zacks analyst expects TriMas to gain from organic growth, expanding global capabilities & product development.
Interpublic (IPG) Poised for Modest Organic Growth in 2017
Interpublic's digital capabilities, diversified business model and geographic reach offer a distinctive competitive advantage. For 2017, it expects organic growth in the range of 3-4%.
AXIS Capital (AXS) Set to Grow, Boosts its Portfolio
The Zacks analyst believes that AXIS Capital will remain focused in ramping up its Specialty Insurance, Reinsurance, and Accident and Health, which in turn will pave way for long-term growth.
Netflix's (NFLX) Content & Expansion Strategy Pays off
The Zacks analyst thinks the focus on original content and territorial expansion has paid off with the net giant adding 19 million subscribers. But, stiff competition and rising costs remain concerns.
Rayonier (RYN) Pushes Back on Volatility in Timber Price
The Zacks analyst thinks tough compliance requirements, cut-throat competition and high volatility in the prices of timber and manufactured wood products is affecting Rayonier's growth prospects.
Marriott (MAR) Hit by Revenue Headwinds, Integration Risks
Though the Starwood buyout has made Marriott the largest hotel company globally, integration risks related to the acquisition and threats to revenue growth remain concerns, per the covering analyst.
Bayer (BAYRY) MIsses Q4 Earnings, Focus on Monsanto Deal
Bayer missed earnings expectations but exceeded the revenues estimates in Q4. The Zacks analyst believes that with the Monsanto acquisition, Bayer will become a global leader in agriculture.
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The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
The Charles Schwab Corporation (SCHW): Free Stock Analysis Report
Marriott International (MAR): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
GlaxoSmithKline PLC (GSK): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
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