Thursday, December 28, 2017
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 Comcast (CMCSA), Medtronic (NYSE:MDT) and Eni (E). 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 >>>
Comcast’s shares have outperformed the Zacks Cable TV industry in the year-to-date period (+17% vs. +12.5%). Comcast has started the nationwide rollout of the DOCSIS 3.1 technology, with its latest xFi Advanced Gateway.
Further, Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand, with plans to include YouTube in its X1 video platform. Also, the company is venturing into residential solar programs with a 40-month deal with Sunrun. Comcast is working towards 5G network deployment and continues to expand its theme park business. Through these actions, Comcast aims to check customer churn and provide viewers with more streaming options.
However, the Zacks analyst remains concerned about the company’s operations in a saturated and competitive multi-channel U.S. video market. Comcast also continues to lose video customers due to cord-cutting. High debt levels, consolidation-related woes and mounting programming costs are other potential hazards.
(You can read the full research report on Comcast here >>>).
Shares of Medtronic have outperformed the Zacks Medical Products industry over the last three months, gaining +5.1% vs. +3.4%. Medtronic exited the fiscal second quarter on a mixed note. While it demonstrated improved segmental performances at CER, escalating costs and expenses continue to weigh on the bottom line. Unfavorable currency translation also acted as a dampener.
On the bright side, all major business groups contributed to solid top-line growth at CER, which highlighted sustainability across groups and regions, in addition to displaying successful integration and achievement of synergy targets. The Zacks analyst also likes the solid growth trend in the United States as well as healthy global acceptance of its advanced therapies.
The recent launch of a telehealth solution, the receipt of FDA approval and commercial launch of Azure pacemakers buoy optimism. Apart from product innovation, the company is focusing on geographical diversification of its businesses. The stabilizing trend in the global Cardiac Rhythm & Heart Failure (CRHF) market is another upside.
(You can read the full research report on Medtronic here >>>).
Eni’s shares have underperformed the Zacks Integrated Oil industry in the year-to-date period (+3.6% vs. +7.1%). Eni expects oil and gas production in 2017-2020 to grow at 3% per year. For 2017, Eni projects oil and natural gas output at 1.84 million (BOE/D), up 5% year over year.
Start-ups of new upstream projects in Ghana, Angola, Indonesia, Mexico as well as Egypt has been supporting Eni's crude production growth. Eni commenced natural gas production in Zohr field, located off the coast of Egypt. This new start up would add considerably to the company’s production.
Moreover, Eni’s exit from low-profit operations and broadening of its international asset base hold promise. Eni completely exited from the gas sector in Hungary with the sale of its stake in Tigaz Zrt. On top of that, enhancing oil and gas productions from key upstream projects while maintaining lower capital spending helped the company to generate organic cash balance of €5 billion. Eni expects to fund its future capital spending and dividend payments from this fund.
(You can read the full research report on Eni here >>>).
Other noteworthy reports we are featuring today include Barclays (LON:BARC) (BCS), Equity Residential (NYSE:EQR) and Air Products (APD).
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Mark Vickery
Senior Editor
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
Featured Reports
Focus on Qsymia and Stendra Sales Growth Boosts VIVUS (VVUS)
As per the Zacks analyst, VIVUS is focused on boosting Qsymia sales and is collaborating with companies for the commercialization of Stendra which provides VIVUS with a steady stream of cash inflow.
Muted Revenues, Legal Hassles Continue to Hurt Barclays (BCS)
Per the Zacks analyst, weak capital market performance, low interest rates and uncertainty related to Brexit continue to hurt Barclays' revenues.
Equity Residential (EQR) to Gain from Steady Rental Demand
Per the Zacks analyst, steady demand for rental apartments amid favorable demographics will likely drive Equity Residential's growth.
Proofpoint (PFPT) Rides on Product Launches, Expenses Hurt
Per the Zacks analyst, product launches like Domain Discover and buyouts are anticipated to drive Proofpoint's top-line growth.
Debt Cuts, Production Growth Actions to Aid Newmont (NEM)
The Zacks analyst thinks that Newmont should gain from its efforts to boost production performance, de-lever its balance sheet and improve operational efficiency.
Project Investments, Cost Cuts to Aid Air Products (APD)
Per the Zacks analyst, Air Products will gain from strong project backlog and strategic investments in high-return projects.
Nitrogen Demand Aids CF Industries (CF) Amid Pricing Woes
The Zacks analyst believes that CF Industries should benefit from higher nitrogen demand in a challenging pricing environment resulting from higher supply.
New Upgrades
Cintas (NASDAQ:CTAS) Remains Bullish on Solid Growth Dynamics
Per the Zacks analyst, G&K Services' buyout has expanded Cintas' customer profile and improved its revenues, enabling it to raise the earlier guidance for fiscal 2018 on solid growth trends.
Meredith's (MDP) Brand Licensing, Digital Efforts to Spur Sales
Per the Zacks analyst, Meredith's strategic efforts in the digital space, brand licensing program and great group of television stations are the pillars that reinforce its position in the industry.
New Branch Openings in Europe Aid LKQ Corporation (LKQ)
Per the Zacks analyst, LKQ Corp's focus on expanding operations in Europe through opening of new Euro Car Parts branches for counter sales and distribution centers is boosting its sales growth.
New Downgrades
Lower Dayrates & Utilization for Floaters Hurt Ensco (ESV)
Reduced rig operating days following lower utilization of floaters continues to hurt Ensco's net cashflow from operations, according to the Zacks analyst.
High Debt, Low Distribution Coverage Ratio Ail NuStar (NS)
Per the covering analyst, high leverage of over 57% and a sub-1.0x distribution coverage ratio reflecting low liquidity are likely to limit NuStar's growth in the near future.
Crown Holdings (CCK) Hurt by Volume Pressure, Hurricanes
Per the Zacks analyst, Crown Holdings' aerosol can sales volumes will be hurt by lower consumer spending. Supply issues due to lack of industrial gases following the hurricanes will also hit results.
Medtronic PLC (MDT): Free Stock Analysis Report
Equity Residential (EQR): Free Stock Analysis Report
ENI (MI:ENI) S.p.A. (E): Free Stock Analysis Report
Comcast Corporation (NASDAQ:CMCSA): Free Stock Analysis Report
Barclays PLC (BCS): Free Stock Analysis Report
Air Products and Chemicals, Inc. (NYSE:APD): Free Stock Analysis Report
Original post
Zacks Investment Research