Tuesday, November 14, 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 Activision (ATVI), Marriott (MAR) and Intuitive Surgical (ISRG). 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 >>>
Buy-rated Activision’s shares have been strong performers this year, with the stock up +76.2% in the year-to-date period vs. the Zacks Toys, Games and Hobbies industry's +48.7% gain in that same time period. Activision's third quarter 2017 results benefitted from increasing digital revenues, King Digital buyout and strength in franchises. Activision also raised guidance for the full year.
The Zacks analyst likes the company’s attempts to become a broad-based media company. Apart from launching a movie studio and consumer products division, the company is also strengthening its presence in the lucrative e-sports market.
Activision had added twelve teams in the e-sports league for its newest franchise, Overwatch. However, hit driven and competitive nature of the video game industry begets caution.
(You can read the full research report on Activision here >>>).
Shares of Buy-rated Marriott have outperformed the Zacks Hotels industry in the year-to-date period (the stock is up +45.6% vs. +16.2% gain for the industry). Marriott’s third-quarter 2017 adjusted earnings exceeded expectations and rose 26.4% year over year.
Notably, with the acquisition of Starwood, Marriott became the world's largest hotel company. In fact, this buyout is likely to result in a bigger brand with increased scale and a robust development pipeline in the long run. The Zacks analyst likes Marriott’s rising North-American business, sizeable international exposure and attractive brand-position.
These factors are likely to continue to drive growth. Yet, lingering political uncertainties in key international markets and currency headwinds might continue to limit revenue growth. Moreover, integration risks linked to Starwood purchase is an added concern. Even so, its investments in technology for hotel bookings are anticipated to improve guest experience, which in turn might boost occupancy.
(You can read the full research report on Marriott here >>>).
Buy-rated Intuitive Surgical’s shares have outperformed the Zacks Medical Instruments industry over the last three months, gaining +19.4% vs +5.3%. Its third quarter earnings and revenues both topped expectations.
The company’s procedure performance in Asia showed continued strength with solid growth in China, Japan and Korea. Intuitive Surgical gained significantly on the CE Mark approval for da Vinci X in Europe. The stock received a further boost on the recent FDA approval for da Vinci X.
The Zacks analyst likes the company’s solid outlook for the coming quarters. Further, incremental spending on product development and higher investments in international markets are prudent moves that are likely to drive long-term growth. The company is also expected to enhance its organizational capabilities and gain prominence in the markets of Europe and Asia.
(You can read the full research report on Intuitive Surgical here >>>).
Other noteworthy reports we are featuring today Edison International (EIX), Devon (DVN) and TELUS (TU).
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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
Activision (ATVI) Benefits from Strength in Franchises
Marriott (MAR) Solid on Starwood Buyout & Rapid Expansion
Intuitive Surgical (ISRG) Gains from Procedural Business
Solid Portfolio and Balance Sheet Strength Aid Essex (ESS)
The Zacks analyst expects Essex Property to gain from strong property base and solid balance sheet. But aggressive rental concessions and moderate pricing power amid high supply remain worries.
High AISC, Gold Pricing Headwinds Weigh on Newmont (NEM)
Per the Zacks analyst, Newmont's efforts to boost production and de-lever its balance sheet is offset by headwinds from rising all-in sustaining costs (AISC) and a volatile gold price environment.
Devon (DVN) Gains From U.S. Oil Production and Cost Savings
The Zacks analyst believes Devon Energy's increasing oil production from domestic assets and cost savings initiatives will continue to boost its performance.
Investment Aids Edison International (EIX), Legal Issues Hurt
Per the Zacks analyst, a solid investment plan has boosted Edison International's growth trajectory. Yet authorities' decision to reduce its original requested 2018 base revenue requirement hurts.
Equifax (EFX) Banks on Product Innovation, Data Breach Hurts
Per the Zacks analyst, product innovation and expansion of data assets through acquisitions are tailwinds for Equifax.
Mobile, Internet User Gains Lift TELUS (TU) Amid Competition
Despite facing fierce competition in both the wireless and wireline segments, the Zacks Analyst is impressed with TELUS' massive subscriber additions in the third-quarter.
UDR's Solid Portfolio Mix Amid Rising Supply Bodes Well
The Zacks analyst is optimistic about UDR Inc's properties in diverse sub-markets that offer superior portfolio mix.
Bakken Pipeline & Sunoco Buyout Drive Energy Transfer (ETP)
Per the Zacks analyst, key projects like Bakken and Rover pipelines are set to buoy Energy Transfer's sales and DCF. Further, Sunoco and PennTex buyouts will also result in cost savings and synergies.
Dollar General's (DG) Sturdy Comps Run to Propel Top-Line
Dollar General boasts impressive comparable sales run. Per the Zacks analyst, the company's improved price management, merchandise, cost containment and operational initiatives should drive sales.
MyDay, Clariti and Biofinity Platforms Buoy Cooper (COO)
Per the Zacks analyst, Cooper Companies has solid prospects in the MyDay, Clariti and Biofinity silicone hydrogel lenses. Of the other positives, the company has recently acquired Procornea.
Twilio (TWLO) Hurt by Lower Gross Margin and Uber Revenues
The Zacks analyst thinks contracting gross margin due to unfavorable international traffic mix and reduced revenue contribution from Uber is a major concern for the company's bottom-line.
Few Pipeline Candidates a Concern for Catalyst (CPRX)
Per the Zacks analyst, with only few candidates in the pipeline, the company's dependence on Firdapse for growth remains a matter of concern.
High Integration Costs Weigh on Superior Industries (SUP)
With Uniwheels acquisition, Superior Industries has ventured into Europe. Per the Zacks analyst, Superior Industries will be hurt by the high integration costs.
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TELUS Corporation (TU) : Free Stock Analysis Report
Marriott International (MAR) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
Edison International (EIX) : Free Stock Analysis Report
Devon Energy Corporation (DVN) : Free Stock Analysis Report
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
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