Thursday, January 17, 2019
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 NextEra Energy, Inc. (NEE), Wells Fargo & Company (WFC) and Mondelez International, Inc. (MDLZ). 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 >>>
NextEra Energy’s shares outperformed the Zacks Utility - Electric Power industry in the past twelve months, gaining +15.9% vs +3.6%. The Zacks analyst thinks that NextEra Energy’s investments to strengthen its infrastructure and ongoing capital projects, on completion, will help serve its expanding customer base more efficiently. The expansion of its natural gas operation through strategic acquisitions also will have a positive impact on earnings.
However, the company’s nature of business is subject to complex and comprehensive federal, state and other regulations. At the same time, the risk of unplanned outages remains, which could derail its normal operation and impact profitability.
(You can read the full research report on NextEra Energy here >>>).
Shares of Wells Fargo & Company have underperformed the Zacks Banks - Major Regional industry over the past six months (down -13.5% vs. -10.1%). The Zacks analyst thinks that this can be attributed to the company’s fall in non-interest income. Lest we forget that Wells Fargo was slapped with several sanctions, including a cap on the assets by the Federal Reserve, following its involvement in several legal issues. Its reputation harmed by such involvement, might take some time to recover.
But its earnings surprise history is decent and has beaten the Zacks Consensus Estimate in two of the trailing four quarters. Ongoing investment in the businesses to enhance compliance and risk management capability, build a better bank and strengthen core infrastructure, also bode well.
(You can read the full research report on Wells Fargo & Company here >>>).
Mondelez International’s shares outperformed the Zacks Food - Miscellaneous industry in the past three months, gaining +3.9% vs -7.9%. The Zacks analyst thinks that the company has been gaining from a strong earnings history. Its third-quarter 2018 bottom-line performance was boosted by benefits from taxes, fewer outstanding shares and operating gains. Further, Mondelez is gaining from improved pricing and productivity savings.
Nevertheless, we note that sluggish sales in North America, stemming from operational challenges, have been a drag on performance. This combined with adverse currency impacts continue to remain as threats.
(You can read the full research report on Mondelez International here >>>).
Other noteworthy reports we are featuring today include L3 Technologies, Inc. (LLL), The Williams Companies, Inc. (WMB) and EOG Resources, Inc. (EOG).
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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
NextEra (NEE) Gains from Investments, Regulations Ail
Rising Loans, Rates Aid Wells Fargo (WFC), Legal Issues Ail
Productivity Savings to Continue Fueling Mondelez (MDLZ)
Acquisitions Aid Genesee & Wyoming (GWR) Amid High Costs
The Zacks analyst is impressed by the company's growth-by-acquisition policy to boost its top line.
Acquisitions to Drive Greif (GEF), Weak China Demand Ails
Per the Zacks analyst, Greif is poised to gain from its focus on acquisitions and operational execution despite weak demand and competitive market conditions in China.
Robust Wireless Growth Benefits Shaw Communications (SJR)
Per the Zacks analyst, Shaw Communications' Wireless business is benefiting from higher subscriber growth and an improvement in average revenue per unit (ARPU).
Brown & Brown (BRO) Grows on Higher Commission and Fees
Per the Zacks analyst, Brown & Brown is poised to grow on improving commission and fees from each division. The company's impressive growth is driven by organic and inorganic means across segments.
Acquisitions, Growing Revenues Aid WellCare (WCG)
Per the Zacks analyst, revenues have consistently grown on the back of organic and inorganic growth strategies which includes acquisition of Universal American, Meridian Health Plans and Meridian Rx.
EOG Resources (EOG) Banks on Bakken, Gathering Costs High
The Zacks analyst believes that EOG's strong focus on the oil-rich Bakken shale plays will create long-term value for shareholders.
CLARCOR Buyout Aids Parker-Hannifin (PH), High Costs Ail
Per the Zacks analyst, Parker-Hannifin's revamped "Win Strategy" along with the CLARCOR buyout should boost its growth prospects.
Program Diversification, Robust Growth Patterns Aids L3 (LLL)
Per the Zacks analyst, L3 Technologies witnesses strong growth in commercial aviation market. Moreover, it is diversifying its portfolio to bring more focus to defense electronics and ISR markets.
Improving Mortgage Insurance Portfolio Aids Radian (RDN)
Per the Zacks analyst, Radian's growing mortgage insurance portfolio, owing to high volume of quality and improving business written, will continue to bolster the company's bottom line.
Williams (WMB) to Benefit from Brazos Midstream JV
The Zacks analyst believes that the newly formed JV with Brazos Midstream will enhance Williams' exposure to the lucrative Permian Basin and equip its operations with increased processing capacity.
Rising Costs & Debt, Forex Woes Weigh on Nordson (NDSN)
Per a Zacks analyst, Nordson's margins and profitability faces higher costs, unfavourable movements in foreign currencies and expenses associated with high debts.
Rising Expenses & Risky Loans Hurt Washington Federal (WAFD)
Per the Zacks analyst, steadily increasing operating expenses and exposure to risky loan portfolios continue to keep Washington Federal's financials under pressure.
bluebird's (BLUE) Dependence on Partners For Funds Worrying
Per the Zacks analyst, bluebird is highly dependent on its partners for funds. The company does not have any approved products yet so the failure of any ongoing studies is a major risk.
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