Thursday, October 20, 2016
Today's Research Daily features new research reports on 16 major stocks, including Halliburton (NYSE:HAL), Netflix (NASDAQ:NFLX) and Disney (DIS).
Shares of Buy rated Halliburton have been strong performers this year, handily beating the Energy sector as a whole (the stock is up 44% year-to-date vs. 18.9% for the sector as a whole). The analyst likes the world’s second largest oilfield-services provider’s continued and effective cost management which helped it report better than expected quarterly results. Halliburton's 9th consecutive quarterly beat was also helped by improved utilization on the back of growing North American rig count. In fact, Halliburton has used the challenges prevailing in the industry to its advantage, mainly by offering low cost solutions that aids producers in churning out more by investing less. (You can read the full research report on Halliburton here>>)
Netflix shares struggled following this year, but have spiked following the strong quarterly report. The company delivered solid third-quarter 2016 results, exceeding its earlier projections on all key counts. The analyst is encouraged by robust new subscribers growth recorded during the quarter. In addition, the company also provided decent guidance for the current quarter especially for international subscriber additions. The streaming giant has been drawing strength from its growing portfolio of original content. This apart, it remains focused on international expansion and localization to solidify presence in its operating markets. (You can read the full research report on Netflix here>>)
Beyond Halliburton and Netflix, the picture emerging from the Q3 earnings season is reassuring and positive, as described in our weekly Earnings Trends report - Is the Earnings Improvement for Real?
With respect to the Q3 scorecard, we now have Q3 results from 99 S&P 500 members that combined account for 23.5% of the index's total market capitalization. Total earnings for these 99 companies are up 2.6% from the same period last year on 2.5% higher revenues, with 77.8% beating EPS estimates and 60.6% beating revenue estimates. This is better performance than we have seen from the same group of companies in other recent quarters.
Disney shares have been laggards lately - the stock is down 12.5% year-to-date. A big reason for the underperformance is uncertainty surrounding the company's ESPN unit in a changing media landscape owing to migration of subscribers to online TV. But the analyst likes Disney’s sturdy movie business and solid performance of its Parks & Resorts division. The success of movies also mean healthy business for its Consumer Products division as demand for the merchandise associated with successful movies usually skyrockets, as seen in case of Frozen. Further, Disney is also in the process of rolling out more themed attractions in parks and resorts (You can read the full research report on Disney here>>)
Other noteworthy reports we are featuring today include Eli Lilly (LLY), Bristol-Myers (BMY), and Sprint (S).
You can find all of today's stock research reports here>>
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Sheraz Mian
Director of Research
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Today's Must Read
Featured Reports
St. Jude (STJ) Misses Q3 Earnings, Moving Ahead with Abott Merger
The Zacks analyst thinks lukewarm Q3 numbers from ongoing weakness in CRM business is being overshadowed by steady progress towardnthe $25 billion merger with Abott Laboratories by year-end.
Northern Trust's (NASDAQ:NTRS) Q3 Earnings Shows Revenue Strength
The covering analyst remains optimistic as Northern Trust kept its revenue growth momentum alive in Q3 with continued rise in assets under custody and management.
Avnet's (AVT) Earnings to Gain from Premier Farnell Buyout
The Zacks analyst thinks the buyout of Premier Farnell will boost Avnet's Electronics Marketing offerings.
XL Group's (XL) Inorganic Story Continues to Impress
The covering analyst believes that XL Group's inorganic story will continue to impress, even as it focuses on tapping opportunities in emerging economies.
Badger Meter's (BMI) Q3 Earnings Weak, Long Term Growth Intact
Despite Badger Meter's weak results in Q3, its long- term growth story is intact given its industry-leading position in the U.S. water meter market and successful new products.
Marriott (MAR) Riding on Starwood Merger Despite Challenges
Marriott's recent acquisition of Starwood and its large scale expansion into emerging markets should aid in countering macroeconomic challenges, according to the Zacks analyst.
Sprint's (S) Promotional Plans to Boost Customer Additions
The Zacks analyst believes that Sprint's attractive promotional offerings related to iPhone and other flagship devices will boost customer additions going forward.
New Upgrades
Intuitive Surgical (NASDAQ:ISRG) Tops Q3 Earnings And Revenues
The Zacks analyst is upbeat on Intuitive Surgical's performance in the third-quarter of 2016 with strong growth in procedural volumes. The company crushed the Zacks Consensus Estimate on both lines.
Reinsurance Group's (RGA) Operational Expansion Impresses
The covering analyst believes that Reinsurance Group's niche position in the U.S and Canadian reinsurance markets, expansion of international operations and diversified earnings stream are positives.
Older Drugs to Drive Eli Lilly's (LLY) Growth; Alimta Concerns Remain
The Zacks analyst believes that Lilly's older drugs should drive growth while sales from new products will pick up. However, Alimta will continue to be impacted by competition.
New Downgrades
Bristol-Myers (BMY) Hit by Lung Cancer Data on Opdivo
The Zacks analyst feels that Bristol-Myers' failed label expansion efforts for Opdivo in the first-line treatment of lung cancer could give an edge to its competitors.
Alcoa (NYSE:AA) Faces Pricing Woes, End-market Headwinds
The Zacks analyst thinks weak metals prices may continue to hurt Alcoa's revenues. The company is also seeing pricing pressure in its downstream business and softness across certain end-use markets.
Tenneco's (TEN) Concentrated Customer Base Poses Concern
The covering analyst believes high customer concentration and competition in the industry pose major concerns for the company.
SPRINT CORP (S): Free Stock Analysis Report
NETFLIX INC (NFLX): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
HALLIBURTON CO (HAL): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
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Zacks Investment Research