U.S. Markets close in 4 hrs 41 mins

Top Stock Reports for Alibaba, General Electric & Anthem

Mark Vickery

Thursday, November 7, 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 Alibaba Group (BABA), General Electric (GE) and Anthem (ANTM). 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 >>>

Alibaba’s shares have underperformed the Zacks Internet Commerce industry year to date (34.4% vs. 27.6%). The Zacks analyst believes that Alibaba’s strengthening cloud business with its expanding customer base drove its performance.

Alibaba reported strong fiscal second-quarter earnings driven by steady improvement in core commerce and solid growth in metrics. Notably, the New Retail strategy has gained momentum in the markets served by the company. This aided growth in Tmall Import and Hema fresh food grocery businesses.

However, revenues missed the Zacks Consensus estimate due to higher expenses. The company’s increasing investments, uncertain economy and macro headwinds in China are major concerns. Also, rising competition poses a risk.

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

Shares of General Electric have gained 8.5% in the past six months against S&P 500’s rise of 6.7%. The Zacks analyst believes that in the quarters ahead, the company is poised to gain from its portfolio restructuring program, digital business, efforts to reduce leverage, international commercial presence and improvement in segmental businesses.

It expects adjusted earnings per share of 55-65 cents for 2019. Healthy business in Aviation, Healthcare and Renewable Energy segments as well as steps to improve the Power segment and asset dispositions in GE Capital will be boons. In third-quarter 2019, the company’s earnings surpassed estimates by 25%, while revenues lagged the same by 19.8%.

The presence of internal and external challenges remains a drag for the Power business. Also, weak margin in Renewable Energy, forex woes and tariffs might adversely impact performance.

(You can read the full research report on General Electric here >>>)

Anthem’s shares have declined 3.9% over the past three months against the Zacks Medical Insurance industry’s rise of 0.3%. The Zacks analyst believes that the company’s prudent acquisitions and collaborations complement its organic growth and helps it boost Medicare Advantage growth.

It has launched successful partnerships with various companies and it expects its partnership model to accelerate growth. Its growing top line paves the way for long-term growth. A diverse product portfolio also helped it enhance its revenues. Its strong capital position and solid guidance also impress.

Its third-quarter 2019 earnings of $4.87 per share surpassed the Zacks Consensus Estimate by 0.6% and grew 27.8% year over year on higher revenues. However, it has been suffering from high benefit costs and selling, general and administrative expense, which continues to weigh on its bottom line. Rising level of debt is another concern.

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

Other noteworthy reports we are featuring today include Emerson (EMR), Progressive (PGR) and Regeneron Pharmaceuticals (REGN).

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

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

Alibaba (BABA) Drives On Cloud Growth; Investments Hurt


Restructuring to Aid General Electric (GE), Power Woes Exists


Strategic Initiatives Aid Anthem (ANTM), Rising Costs Hurt


Featured Reports

Emerson (EMR) Rides on Solid MRO Activities, High Costs Hurt

Per the analyst, strong performance of Emerson's Automation Solutions segment fuelled by strong brownfield projects & MRO activities should drive its revenues.

Progressive Corp.'s (PGR) Strong Auto Business Drives Growth

Per the Zacks analyst, Progressive's niche in product, service and distribution innovation, in personal auto business has gained it market share.

Eylea, Dupixent Drive Regeneron (REGN) As Competition Lurks

Per the Zacks analyst, label expansion of Eylea and strong demand for Dupixent boost Regeneron. However, the company is highly dependent on Eylea and the drug is expected to face competition shortly.

Growth Projects Aid Newmont Goldcorp (NEM) Amid Cost Woes

While the company faces headwind from high production costs, it should gain from investment in its growth projects and efforts to improve efficiency, per the Zacks analyst.

Solid Top line Aids Hartford Financial (HIG), Cat Loss Ails

Per the Zacks analyst, its improving investment income on the back of strategic initiatives has led to significant growth.

Traffic Growth Drives Ryanair (RYAAY) Amid Labor Unrest

The Zacks analyst praises the traffic increase on solid air travel demand. Efforts to modernize Ryanair's fleet are also encouraging. However, persistent labor unrest is a concern.

Dividends Aid Expeditors (EXPD) Amid Airfreight Unit Woes

The Zacks analyst appreciates Expeditors' efforts to add shareholder value. However, declining airfreight revenues and volumes due to the Sino-US trade dispute are bothersome.

New Upgrades

Fortinet (FTNT) Rides on Solid Product Menu, Large Deal Wins

Per the Zacks Analyst, Fortinet is benefiting from an upsurge in large deals, aided by its SD-WAN solutions. Moreover, buoyant demand for cloud offerings and Security Fabric is a tailwind.

Qorvo (QRVO) Rides on Solid 5G Product Suite & GaN Solutions

Per the Zacks analyst, Qorvo's expanding portfolio of 5G and GaN solutions hold promise. Further, robust growth in company's wireless connectivity as well as in base station solutions is a positive.

Broad Service Portfolio Continues to Aid LHC Group (LHCG)

Per the Zacks analyst, LHC Group's broad array of services, offered through its diverse business segments, continues to drive the company's top line.

New Downgrades

Weak Freight Volumes Weigh on C.H. Robinson (CHRW)

Per the Zacks analyst, C.H. Robinson is plagued by softening freight demand as a result of the U.S.-China trade tensions. The company's high capital expenses are an added concern.

Alliance Data (ADS) Hurt by Debt Load, Rise in Expenses

Per the Zacks analyst, increasing expenses due to higher cost of operations and loss on debt extinguishment continues to affect the top line. High debt levels are a concern as well.

Rising Costs Impede Cardiovascular Systems' (CSII) Growth

The Zacks analyst is worried about Cardiovascular Systems' rising operating expenses that have continued to put bottom-line pressure.


undefined undefined
 
Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
 
The Progressive Corporation (PGR) : Free Stock Analysis Report
 
General Electric Company (GE) : Free Stock Analysis Report
 
Emerson Electric Co. (EMR) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
Anthem, Inc. (ANTM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research