Tuesday, August 9, 2016
Today's Research Daily write-up features analyst reports on 16 prominent stocks, including Home Depot (NYSE:HD), Medtronic (NYSE:MDT) and Pioneer Natural Resources (PXD).
Home Depot shares have lagged the broader market this year, primarily reflecting the lack of any near-term catalysts as well as seasonality factors. The home improvement retailer reports next week, but read throughs from some its peers has not been particularly encouraging. In the updated research report issued today, the analyst discusses the pros & cons of investing in this stock at present. While the analyst likes the company's efforts to build its interconnected capabilities, it has contend with intense competition from specialty and mass retailers and an uneven economic recovery. (You can read the full research report on HD here.)
Buy-rated Medtronic is up more than 14% year-to-date, but the momentum should continue over the coming days given recent product approvals and improved outlook as a result of deals. The company's Restorative Therapies business received a big boost from the CE Mark approval for its latest deep brain stimulation (DBS) therapy product, SureTune2. The analyst likes Medtronic’s $1.1 billion agreement to buy Heartware International, which is expected to significantly boost its Cardiac Rhythm & Heart Failure business. Additionally, the Covidien integration synergy continues to meaningfully accelerate all of the company’s fundamental growth strategies. (You can read the full research report on MDT here.)
Pioneer Natural Resources has been an outstanding performer this year on the back of the E&P player's largely hedged production stream, an oil-weighted reserves base and large drilling inventory, with significant resource potential. This Zacks Rank # 2 (Buy) stock has a strong balance sheet and plenty of financial flexibility to withstand any unfavorable moves in the commodity. (You can read the full research report on PXD here.)
Other noteworthy reports we are featuring today include American Airlines (AAL), Spectra Energy (NYSE:SE) and Canadian National (CNI).
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
American Airlines (AAL) Tops Q2 Earnings, Signs Labor Deal
The Q2 earnings beat apart, the Zacks analyst is positive on the tentative pay related deal for ground employees.
Weak Q2 Earnings Lead to Concerns About Spectra Energy (SE)
Though Spectra Energy is well positioned to take advantage of its strong and growing backlog, the company's Q2 underperformance has made the covering analyst cautious on the stock.
Canadian National (CNI) Q2 Earnings Beat, Coal Woes Remain
The Zacks analyst thinks the Q2 earnings beat along with expectations of better market conditions across some commodities bode well. However, coal is likely to remain a drag on revenues.
Symantec (NASDAQ:SYMC) 1Q17 Results Driven by Enterprise Security
The covering analyst thinks that restructuring initiatives and the Blue Coat buyout will reduce its dependence on the PC market and strengthen its position in the fast growing enterprise security space.
Kimco (KIM) Q2 Occupancy Attains 8-year High, 2020 Vision on Track
The Zacks analyst thinks decent Q2 results with high occupancy is encouraging and Kimco remains on track with its strategic 2020 Vision.
Mohawk Industries (MHK) Reported Better than Expected Q2 Earnings
The covering analyst thinks that Mohawk Industries' Q2 was impressive as the company reported strong earnings per share and margins in the quarter, though revenue lagged.
D.R. Horton (DHI) Q3 Earnings In-Line, Sales Miss as ASPs Slow Down
The Zacks analyst thinks that Q3 fiscal 2016 results were soft as sales missed the Zacks Consensus Estimate while earnings came in-line.
New Upgrades
CME Group (NASDAQ:CME) To Improve Live Cattle Futures Market
CME Group has taken up a number of measures, created to improve Live Cattle futures markets. These new actions will help the producers and commercial firms to manage their price risk better.
BioMarin (BMRN) Posts Narrower Q2 Loss, Sales View Upped
BioMarin's Q2 loss was narrower while revenues beat estimates. The Zacks analyst believes the raised 2016 outlook is achievable on the back of strong performance of products like Vimizim & Kuvan.
Equinix (NASDAQ:EQIX) Reports Strong Q2 Results, Ups FY16 Guidance
The Zacks analyst thinks that Equinix's recurring revenues business model and capital deployment activities are its key strengths. Buyout of Telecity and Bit-isle will further boost its top line.
New Downgrades
Tough Comparisons Lower Profits for Hanesbrands (HBI) in Q2
Q2 earnings missed the Zacks Consensus due to tough year over year comparisons and competition in the apparel sector. However, earnings rose 2% YoY backed by a 3% gain in sales.
ABM Industries (ABM) Plagued By Macroeconomic Woes
With a significant presence in the U.K., the company is likely to be stifled by the renegotiated deals and restrictions imposed on trade post the Brexit referendum, lowering its productivity.
Delay in Closing Fairchild Buy May Hurt ON Semiconductor (ON)
Though ON reported better-than-expected second quarter results, the Zacks analyst believes that delay in closing the Fairchild acquisition is a near term pressure.
SPECTRA ENERGY (SE): Free Stock Analysis Report
PIONEER NAT RES (PXD): Free Stock Analysis Report
MEDTRONIC (MDT): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
CDN NATL RY CO (CNI): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
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Zacks Investment Research