Monday, August 15, 2016
Today's must-read reports are for AstraZeneca (AZN), Caterpillar (NYSE:CAT) and Exelon (NYSE:EXC).
AstraZeneca shares have rallied from the mid-June lows, erasing most of the stock's earlier underperformance. The Pound weakness following the Brexit vote has been helpful to this London-based pharma giant. The company has also benefited from the failure of Bristol-Myers' cancer drug, which has put the spotlight on its candidates in that space. These immediate catalysts aside, the analyst likes AstraZeneca’s strong diversified portfolio, expanding presence in emerging markets, ongoing cost-cutting initiatives and robust pipeline. (You can read the full research report on AZN here>>)
Caterpillar shares have been strong performers this year, up more than 22% year-to-date on hopes that the worst was behind this beleagured mining and construction equipment maker. Caterpillar’s earnings picture continues to remain challenged, as the 22% drop in Q2 earnings shows. This tough operating environment has forced management to squeeze more expenses out of the operation. The analyst also points to the improving construction sector as a potential offset to the weak mining sector. (You can read the full research report on CAT here>>)
Exelon shares continue to benefit from the market's hunger for yield (it yields a juicy 3.6%). But a safe dividend isn't Excelon's sole claim to fame - it reported solid results for the June quarter, partly boosted by contributions from the acquired Pepco Holdings assets. The analyst likes the utility's investments, which will strengthen its infrastructure and expand operations. Additionally, its decision to shut down loss making nuclear plants will drive performance. (You can read the full research report on EXC here>>)
You can find all of today's stock research reports here >>>
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Sheraz Mian
Director of Research
Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview. He also provides weekly commentary to Zacks Premium subscribers and manages the Zacks Focus List and Top 10 portfolios.
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Today's Must Read
Featured Reports
Norfolk Southern (NYSE:NSC) Q2 Earnings Beat, Sales Lag on Coal
The Zacks analyst believes that despite coal-related headwinds, the Q2 earnings beat is a positive. Norfolk Southern's efforts to reward shareholders are also encouraging.
MoneyGram (MGI) Posts In-Line Q2 Earnings; Revenues Miss
The Zacks analyst thinks that Moneygram's investment in its digital channel and cost control initiatives will bring long term growth.
Bayer (DE:BAYGN) (BAYRY) Beats on Q2 Earnings, Updates 2016 Outlook
The Zacks analyst believes that Bayer's Q2 results were mixed with the company topping bottom-line estimates but missing on revenues marginally.
Intrexon (XON) Reports Wider Loss in Q2, Revenues Miss
The Zacks analyst believes that Intrexon's efforts to expand through collaborations and acquisitions are encouraging.
Kite (KITE) 2Q Loss Wider but Focus Remains on KTE-C19
Kite's posted wider than expected Q2 loss. However, the Zacks analyst is encouraged by Kite's progress with KTE-C19 which could be filed for FDA approval in late 2016.
New Upgrades
ViaSat's (VSAT) Thriving Satellite Business Drives Q1 Sales
The Zacks analyst believes that increase in residential broadband offerings and government satellite business is proving to be conducive to ViaSat's top-line growth.
MS Franchise & Cost-Cutting to Drive Growth at Biogen (NASDAQ:BIIB)
According to the covering analyst, MS franchise sales & cost-cutting efforts will continue driving Biogen's performance. The company is also progressing with its pipeline.
New Downgrades
Lamar's (LAMR) Q2 FFO & Revenues Beat Estimates, Up Y/Y
The Zacks analyst thinks that despite Q2 earnings beat, higher expenses related to acquired outdoor advertising assets could reduce Lamar's free cash flow and strain its margins.
Apache (NYSE:APA) Downgraded on Q2 Loss, Low Oil Prices
According to the covering analyst, despite Apache's initiatives to align capital spending with its cash flows, oil market turmoil and low prices have made the Zacks analyst turn cautious on the stock.
EXELON CORP (EXC): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
BIOGEN INC (BIIB): Free Stock Analysis Report
BAYER A G -ADR (BAYRY): Free Stock Analysis Report
ASTRAZENECA PLC (AZN): Free Stock Analysis Report
APACHE CORP (APA): Free Stock Analysis Report
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