Monday, December 5 2016
We are featuring analyst reports on 16 major stocks in today's Research Daily, including reports on Amazon (NASDAQ:AMZN), Dow Chemical (NYSE:DOW) and Ford (F). These 16 reports have been hand-picked from the roughly 70 or so research reports issued by our analyst team today. To access all of today's analyst reports, click here >>
Amazon shares have outperformed the broader market in the year-to-dater period (the stock is up 9.5% vs. the 6.8% gain for the S&P 500 as a whole), but the stock has struggled since its mixed third-quarter results and has lagged the broader index since the election. A persistent concern in the Amazon story is the company's ever-growing need to build fulfillment centers that continues to weigh on its margins. However, the analyst likes the company’s solid loyalty system in Prime and its FBA strategy, and content addition continues to add selection to Prime memberships. Also, the AWS generates much higher margins than retail, so it has a very positive impact on Amazon’s profitability. (You can read the full research report on Amazon here>>)
Dow Chemical shares have underperformed the diversified chemicals industry but are still up 7.7% over the year-to-date period. The company's third-quarter results exceeded expectations, aided by its productivity and cost-reduction actions. The analyst likes Dow’s productivity gains and aggressive portfolio management actions as well as strategic investments in the U.S. Gulf Coast and the Middle East. The company is also moving forward with its planned mega-merger with DuPont (NYSE:DD), which is expected to create significant synergies. Dow should also gain from cost synergies associated with Dow Corning Silicones business in 2016. (You can read the full research report on Dow Chemical here>>)
Ford have struggled this year, underperforming the embattled domestic auto manufacturing industry as well as GM. The automaker's full-year 2016 pre-tax profit, adjusted earnings per share and automotive operating margin are expected to be lower than 2015. Further, results from most regions are expected to be weaker this year. In the updated research report issued today, the analyst discusses the pros & cons of investing in Ford shares at present. Of the positives in the Ford story, the analyst points out Ford’s product launches, global expansion plans, efficient capital deployment, success of the One Ford plan, focus on autonomous vehicle development and solid long-term outlook. (You can read the full research report on Ford here>>)
Other noteworthy reports we are featuring today include Stryker (SYK), Eli Lilly (LLY) and Eni (E).
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Sheraz Mian
Director of Research
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Today's Must Read
Featured Reports
SeaDrill (SDRL) Posts Higher than Expected Q3 Earnings
The Zacks analyst believes that SeaDrill's Q3 outperformance reflects its sustained cost cuts and impressive utilization. However, lower drilling activity remains an issue.
AMETEK (AME) Benefits from Product & Operational Efficiency
The covering analyst thinks AMETEK excels in strategic acquisitions, operational efficiencies, product introductions. However, integration issues and weak balance sheet are concerns.
Arthur J Gallagher's (AJG) Inorganic Growth Story Impresses
The Zacks analyst believes that Arthur J. Gallagher will continue to boost its inorganic growth profile with strategic buyouts. However, escalating expenses will restrict operating margin expansion.
Reinsurance Group (RGA) to Grow From Pension Risk Transfer
The covering analyst believes Reinsurance Group is set to benefit from changing life reinsurance pricing environment and expanding business in pension risk transfer.
Total System (TSS) on Growth Track, New CFPB Rules a Concern
The Zacks analyst remains optimistic about growth prospects of Total System given its solid business model and strategic alliances & acquisitions.
Fitbit's (FIT) Innovative Products Continue to Drive Growth
The Zacks analyst believes that Fitbit's broad-based portfolio, continuous roll out of new products and acquisition strategy will drive the company's growth going forward.
Eni (E) Expects 2016 Production to Remain Flat Y/Y
The covering analyst appreciates Eni's production start ups, which drove its projection of in-line 2016 production despite output shutdown from the Val d'Agri profit center.
New Upgrades
CSX Corp (NASDAQ:CSX) Gains on Bullish Coal Volume Update
The Zacks analyst appreciates the company's bullish Q4 forecast due to improving demand in its key markets like coal. Its efforts to drive earnings through cost-cutting measures are also impressive.
Big Lots (NYSE:BIG) Beats on Q3 Earnings, Raises 2016 Guidance
The covering analyst thinks Big Lots strategic endeavors helped the company to post fourth straight quarter of earnings beat. The upbeat performance prompted it to lift its fiscal 2016 earnings view.
Stryker (SYK) Well Poised on Tie-up & Price Performance
The Zacks analyst believes Stryker's tie-up with Indo UK Institute of Health is a positive. In the last six months, Stryker has outperformed the broader industry with respect to price performance.
New Downgrades
Weak IT Spending, Soft Demand Thwarts Infosys' (INFY) Growth
Infosys is being hurt by the persistent decline in IT spending and weak banking business. Per the Zacks analyst, the U.S. election results are expected to exert pressure on the company's margins.
Fastenal's (FAST) Weak Margins Remain a Concern
The covering analyst believes unfavorable product mix, strong emphasis on growing average store sales, pricing and competitive pressure have been hurting the gross margin for quite some time now.
Lilly's (LLY) Alzheimer Drug Solanezumab Fails in Phase III
Lilly's shares declined after Alzheimer's disease drug solanezumab failed to meet the primary endpoint in a late-stage study. The Zacks analyst thinks Alimta will continue to be hurt by competition.
STRYKER CORP (SYK): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
ENI (MI:ENI
DOW CHEMICAL (DOW): Free Stock Analysis Report
AMAZON.COM INC (AMZN): Free Stock Analysis Report
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Zacks Investment Research