Wednesday, October 19, 2016
Today's Research Daily features new research reports on 16 major stocks, including IBM (NYSE:IBM), BlackRock (BLK) and Starbucks (NASDAQ:SBUX).
IBM shares have lagged the technology sector as well as the S&P 500 index over the last few years as the company struggled to reposition its business to the evolving business landscape. But the stock has turned around this year, outperforming the tech sector as well as the broader market (up 9.5% year to date vs. 7.8% gain for the Zacks Tech sector) on greater confidence in the company's turnaround. The better than expected Q3 results are one step in that direction. The Zacks analyst likes IBM's strategic growth initiatives, including its Big Data & business analytics, cloud computing, mobile and social business, which are expected to drive growth. In addition, the company’s policy of making strategic acquisitions will lead to incremental revenues. (You can read the full research report on IBM here>>)
BlackRock's Q3 report showed the asset management giant handily beat on the bottom line and additions to assets under management (AUM additions, which ended the quarter at $5.1 trillion. The stock has lagged the broader market this year, but leads the finance sector as well as its asset management peers on the back of its industry-leading franchise, particularly on the ETF side. But it isn't just an ETF powerhouse, with a diversified business mix, ranging from one of the largest fixed income operations in the space to significant presence in equities, alternatives and cash products. The company's size and scope positions it to be a major beneficiary of the new regulations that pushing passive advice at the expense of active. (You can read the full research report on BlackRock here>>)
Starbucks shares have struggled this year on concerns about the coffee powerhouse's growth outlook that took a hit following the March-quarter results and has never really recovered since then. It will be interesting to see if they can change the narrative when they report September quarter results on November 3rd. These headwinds notwithstanding, the company's operating fundamentals remain strong – solid global retail footprint, successful innovations, best-in-class loyalty program and digital offerings. (You can read the full research report on Starbucks here>>)
Other noteworthy reports we are featuring today include Disney (DIS), Groupon (GRPN) and NVIDIA (NASDAQ:NVDA).
Today's Private Buys & Sells from Zacks Research
While we share the above news with the public, our sensitive recommendations are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>
You can find all of today's stock research reports here>>>
Sheraz Mian
Director of Research
Note: If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Qiagen (QGEN) Poised on Innovation amid Margin Woes
The Zacks analyst thinks Qiagen's effort to strengthen its molecular diagnostics test menu and huge potential in global in vitro diagnostics market are major positives.
Western Digital (NASDAQ:WDC) Benefits from Increasing Prices
The covering analyst believes Western Digital is likely to benefit from the improving prices of NAND chips as the company has forayed into this space with the acquisition of SanDisk
SM Energy (SM) Acquires More Permian Acreage for $1.6B
The Zacks analyst appreciates SM Energy's plan to boost acreage in the highly productive Permian Basin. With this the company will be able to earn huge cash flows for shareholders in the long run.
LyondellBasell (LYB) Well Poised on Capacity Expansion
The covering analyst thinks LyondellBasell is making good progress with its ethylene expansion projects leveraging the U.S. NGLs advantage, which should boost capacity and add to its earnings.
Estee Lauder's (EL) Focus on Innovation & Marketing Bodes Well
The Zacks analyst thinks marketing investments and product innovation bodes well for the cosmetics giant.
NVIDIA (NVDA) Riding on Innovative Pipeline, Risks Persist
Though risks persist, the covering analyst thinks NVIDIA's sustained focus on the development of innovative products for gaming, datacenter and automobile sectors will drive growth in the long run.
Raytheon's (RTN) Investments Impress, Future Budget a Woe
The Zacks analyst believes that Raytheon's investments in technological upgrades will drive its sales.
New Upgrades
Groupon's (GRPN) On-Demand Service Expansion Key Growth Catalyst
The Zacks analyst believes that Groupon's decision to expand its on-demand food delivery services in St. Louis is a big positive for the company as it will boost its customer base.
Standard Motor (SMP) to Gain from Cost Cutting, Acquisition
Standard Motor has been focusing on reducing cost of production, which will benefit its results. It will also gain from the recent acquisition and regular capital deployment, per the covering analyst.
CMS Energy (NYSE:CMS) Up On Solid Investment, Gas Business Growth
The Zacks analyst believes CMS Energy's investments in infrastructure development projects will stimulate its future earnings growth. Its plan to expand natural gas business also buoys optimism.
New Downgrades
Kansas City (KSU) Downgraded on Q3 Earnings Miss
The Zacks analyst is disappointed by the company's below par performance in the third quarter. Earnings not only lagged expectations but both top and bottom-lines declined year over year.
Disney's (DIS) ESPN Subscriber Count Continues to Decline
The covering analyst thinks that Disney's primary cash cow, ESPN, has been under immense pressure as the Pay-TV landscape continues to change owing to migration of subscribers to online TV.
Illumina (NASDAQ:ILMN) May Continue to Post Sluggish Show in Europe
The covering analyst thinks likely sluggish performance in Europe and factors like funding cuts and fierce competition might significantly hurt Illumina's results in Q3.
STARBUCKS CORP (SBUX): Free Stock Analysis Report
NVIDIA CORP (NVDA): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
GROUPON INC (GRPN): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
BLACKROCK INC (BLK): Free Stock Analysis Report
Original post
Zacks Investment Research