Tuesday, March 12, 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 Visa (V), Honeywell (HON) and Biogen (BIIB). 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 >>>
Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+22.3% vs. +14.3%). Visa’s results were driven by growth in payments volume, cross-border volume and processed transactions, and a lower tax rate. The Zacks analyst thinks numerous strategic acquisitions and alliances, technology upgrades and effective marketing have paved the way for long-term growth and consistent increase in revenues.
Visa is well poised to gain from growing electronic payment processing and a solid brand name. Its strong capital position enables investments in business. Nevertheless, high client incentives and operating expenses, and foreign exchange volatility might put pressure on margins. Softness in cross border volumes is another concern.
(You can read the full research report on Visa here >>>).
Shares of Honeywell have underperformed the Zacks Diversified Operations industry in the past three months, gaining +10.3% vs. a +12.8% increase. Honeywell believes that strength in its commercial aftermarket and sensing businesses as well as solid demand for its productivity and commercial fire products will boost its revenues in the quarters ahead.
The Zacks analyst thinks stronger sales volumes, increased productivity and ongoing commercial effectiveness actions will likely boost near-term profitability. Notably, the company anticipates generating organic sales growth in the range of 2-5% in 2019. Rising costs of revenues are a worry for the company's gross margin.
Also, analysts have become increasingly bearish on the company over the past couple of months. Increases in debt levels can increase its financial obligations.
(You can read the full research report on Honeywell here >>>).
Biogen’s shares have underperformed the Zacks Biomedical and Genetics industry year to date (+3.5% vs. +11.9%). Biogen has a strong position in the MS market with a wide range of products. The Zacks analyst likes its efforts to diversify beyond MS to other areas like Alzheimer’s, Parkinson's and stroke, among others. Meanwhile, its newest drug Spinraza is performing well and has multi-billion dollar potential.
Biogen’s efforts to regularly in-license assets to build its pipeline are encouraging with several having transformative potential. Multiple data readouts are expected in 2019 with multiple potential launches in the early 2020s. However, its core MS business, excluding Ocrevus royalties, has been largely flat.
Also, potential competition to Spinraza from competitors’ gene therapy programs for SMA is a concern. Though Biogen’s CNS pipeline is attractive, it is a high-risk area.
(You can read the full research report on Biogen here >>>).
Other noteworthy reports we are featuring today include Intuitive Surgical (ISRG), Humana (HUM) and EOG Resources (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
Growing Top-line Aids Visa (V), Escalating Expenses Hurt
Aerospace Segment Drives Honeywell (HON), High Costs Hurt
Biogen (BIIB) Rides on Spinraza and In-Licensing Agreements
EOG Resources (EOG) Gains on Eagle Ford, Well Expenses High
Huge inventory of premium drilling wells in the Eagle Ford shale will contribute to EOG Resources' oil production. But, escalating lease and well operating costs are a concern, per the Zacks analyst.
Solid Acquisitions Aid Humana (HUM), Rising Expenses Hurt
Per the Zacks analyst, acquisitions have helped Humana expand its portfolio, which in turn, aided its top-line.
Ongoing Investments, New Water Segment Aids Eversource (ES)
Per the Zacks analyst, Eversource Energy's $12.8 billion investment in the 2019-2023 period to strengthen infrastructure and new water operations will boost performance.
Apache (APA) Banks on Permian Prowess Amid Debt Concerns
Apache's sharp focus on the prolific Permian region, especially Alpine High, is likely to buoy production. However, high leverage of 53% limits the firm's financial flexibility, per the Zacks analyst.
Acquisitions Buoy C.H. Robinson (CHRW) Amid Capex Woes
The Zacks analyst appreciates the company's growth-by-acquisition strategy, which is boosting the top line by expanding its portfolio.
Industrial, Flex Demand Aids PS Business Parks (PSB) Growth
Per the Zacks analyst, PS Business Parks is likely to ride high on the growth curve via demand for flex and industrial real estates and strategic buyouts in core markets.
Marcellus Acres Aids EQT Corp (EQT), Gathering Expenses Ail
Per the Zacks analyst, EQT Corp's presence in the prolific Marcellus play will support natural gas production growth.
PACCAR (PCAR) Rides on Rising Demand for Class 8 Trucks
PACCAR's Class 8 truck's retail sales are rising. Per the Zacks analyst, demand for trucks is rising due to strong European economic growth and higher freight activity.
Nasdaq (NDAQ) Continues to Gain from Strategic Buyouts
Per the Zacks analyst, prudent acquisitions, such as the eVestment buyout, will continue to be accretive to Nasdaq's operational performance, thereby resulting in overall growth.
Kohl's (KSS) Top Line Likely to Benefit From Sturdy Comps
Kohl's has been posting positive comps for six straight quarters. Per the Zacks analyst, Kohl's omnichannel efforts, Greatness Agenda strategy and merchandising plans are likely to keep driving comps.
Competition & Contraction in Margins Hurt Intuitive (ISRG)
Intense competition in the global MedTech space hurts Intuitive Surgical. The Zacks analyst believes contraction in Intuitive Surgical's gross and operating margins in recent times is a concern.
Higher SG&A Cost and Softer Demand to Hurt Watsco (WSO)
Per the Zacks analyst, higher SG&A cost, due to health-related costs and greater technology spending, along with soft demand in Florida and Latin America are hurting Watsco's bottom line.
Hawaiian Holdings (HA) Stung By Capacity & Competition Woes
The Zacks analyst is worried about capacity overexpansion at the company. With Southwest to begin Hawaiian operations from Mar 17, competition is likely to intensify in Hawaiian Holdings' main market.
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Visa Inc. (V) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
Humana Inc. (HUM) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Biogen Inc. (BIIB) : Free Stock Analysis Report
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