Friday, July 29, 2016
Today's must-read reports are for Amgen (NASDAQ:AMGN) (AMGN), JPMorgan (NYSE:JPM) (JPM) and Mondelez (MDLZ).
Zacks Rank # 2 (Buy) rated Amgen’s strong Q2 earnings report earlier this week - it beat on the top- and bottom-lines and guided higher - has helped the stock's positive momentum in recent weeks that followed a weak start earlier. The stock has gained in excess of 12% over the last four weeks, bringing it's year-to-date performance about in-line with the broader market. The analyst likes the company’s cost cutting initiatives, share buybacks and strong performance of key products. Amgen’s pipeline is also progressing well with quite a few regulatory and data updates scheduled for the coming quarters.(You can read the full research report on AMGN here.)
J.P. Morgan shares are down on the year, but they have gained some ground lately, particularly following the Q2 earnings report. The banking giant not only beat expectations, but also reiterated their outlook for the rest of the rest of the year despite a variety of new headwinds. Improvement in trading revenue, rise in mortgage banking fees and higher net interest income supported top line growth. The analyst likes the synergies gained from improving retail banking performance and cost-containment efforts, which will help the company improve its profitability. Further, approval of its 2016 capital plan is indicative of a strong balance sheet.(You can read the full research report on JPM here.)
Mondelez beat the Zacks Consensus Estimate for earnings, but missed on revenues in the second-quarter report that added worries about the company's exposure to an uncertain macro environment in emerging markets. These near-term headwinds notwithstanding, the analyst likes the fact that margins have remained consistently strong backed by cost savings and productivity gains. Additionally, the company is refreshing its brand portfolio through product innovation and extending its brands to newer geographies and platforms. Mondelez is keen on expanding its business through acquisitions and has been regularly divesting non-core underperforming businesses (You can read the full research report on MDLZ here.)
Other noteworthy reports we are featuring today include Oracle (NYSE:ORCL) (ORCL), Thermo Fisher (TMO) and Toyota (TM).
- Oracle (ORCL) to Buy NetSuite
- Thermo Fisher (TMO) Beats Q2 Estimates
- Lily (LLY) Up to Zacks Rank # 2 (Buy)
- Toyota (TM) Down to Zacks Rank # 4 (Sell)
You can find all of today's stock research reports here.
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
Oracle (ORCL) to Acquire NetSuite for $9.3 Billion
The Zacks analyst thinks the addition of NetSuite capabilities to Oracle's cloud portfolio will give it a significant edge over peers.
Boston Scientific's (NYSE:BSX) Q2 Earnings Inline, CRM Grows
The covering analyst thinks raised FY16 guidance is indicative that better times lie ahead for Boston Scientific.
FEMSA (FMX) Tops Q2 Earnings & Sales
Results gained from solid sales and improved operating income offset by currency headwinds, according to the covering analyst.
SunTrust (STI) Q2 Earnings Beat, Margin Pressure Persists
Though Q2 results surpassed earnings and revenue estimates, the Zacks analyst believes a low interest rate scenario and exposure to risky assets will continue to hurt profitability.
Thermo Fisher (TMO) Post Solid Q2 on Innovation, Buyout; View Up
Product launches, emerging market growth and enhanced customer value proposition contributed to strong Q2 performance, according to the covering analyst.
SL Green's (SLG) Q2 FFO Beats Estimates, Revenues Rise
The Zacks analyst thinks the Q2 earnings beat driven by combined same-store net operating income growth is encouraging. However, huge exposure to office properties is a concern.
Lam Research (NASDAQ:LRCX) Tops Q4 Earnings Estimates, Guides Well
The covering analyst believes device architecture, process flow and advanced packaging technology inflections will drive growth in future.
New Upgrades
Lilly (LLY) Tops Q2 Earnings & Revenue, Gives Long-Term View
The Zacks analyst is encouraged by Lilly's long-term outlook which includes annual revenue growth of at least 5%, dividend increases & share buybacks.
Hess' (HES) Loss Narrower than Expected in Q2, Revenues Beat
The covering analyst think Hess' results improved due to rationalization of its portfolio along with cost saving initiatives. These will help in tackling the current market of volatile commodity prices.
Boston Properties' (NYSE:BXP) Q2 FFO Beats Estimates, View Revised Up
Second-quarter earnings beat and upward outlook revision are encouraging. Foray into the Los Angeles market through the Colorado Center stake buyout is a strategic fit, according to the Zacks analyst.
New Downgrades
Toyota's (TM) Global Sales Fall in 1H, Volkswagen (DE:VOWG_p) Takes Lead
Toyota's global sales declined 0.6% in the first half of 2016. As a result, it lost its leading spot to Volkswagen after retaining the position for four years in a row.
Anthem (ANTM) Q2 Earnings Beat, Sued by Regulators for Cigna (NYSE:CI) Merger
The covering analyst stresses that the lawsuit will cause inordinate delay in the merger and losing the case will result in payment of severance charges.
Oversupply to Affect UDR's (UDR) Growth in Approaching Period
The Zacks Analyst believes that elevated deliveries in majority of UDR's markets, including San Francisco and New York, would result in lease-up pressures and adversely hurt top-line growth.
THERMO FISHER (TMO): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
MONDELEZ INTL (MDLZ): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
AMGEN INC (AMGN): Free Stock Analysis Report
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Zacks Investment Research