Wednesday, August 24, 2016
Today's Research Daily features analyst reports on 16 major stocks, including Wal-Mart (NYSE:WMT), American International (AIG) and NextEra Energy (NYSE:NEE). These 16 reports have been hand-picked from the roughly 70 reports issued by our analyt team today. You can access all of today's research reports here >>>
Wal-Mart shares have been strong performers latey (up more than 18% year-to-date) on the back of improving outlook for its core store-based operations and momentum in its online business. All of this was reconfirmed by the recent quarterly release, with revenues, earnings, and comps coming in bettter than expected. In today's research report, the analyst discusses the pros & cons of investing in Wal-Mart shares at present. The analyst likes the retail giant's focus on building its e-commerce capabilities, as evidenced by its recent deal with JD.com in China and agreement to acquire Jet.com in the U.S. The analyst points out, however, that investment in wages and higher spending on e-commerce activities will likely weigh on near-term profitability. (You can read the full research report on Wal-Mart here>>)
AIG investors appear to like the insurance giant's efforts at strategic tranformation that include sale of units generating low returns, reduction of expenses and lowering hedge fund allocation. The latest in this regard are reports of sale of the company's Lloyd's of London operations and the sale of its mortgage guarantee business. Succesful execution of these plans hold the promise of enabling AIG to better navigate the current environment of interest rate overhang, litigation issues and tough competition. (You can read the full research report on AIG here>>)
NextEra Energy offers investors a nice blend of stable electric utility assets and a growing renewable energy franchise. The analyst likes this dividend payer's (it pays an attractive dividend, currently yielding 2.8%) investments in renewable generation and in steps to strengthen its existing infrastructure. (You can read the full research report on NextEra here.)
You can find all of today's stock research reports here >>>
Confidential: Best Trades from Zacks Research
Would you like to see a hand-picked "all-star" selection of investment ideas from the man who heads up Zacks' trading and investing services? Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand. Click for his prized selections right now >>
Sheraz Mian
Director of Research
If you want an email notification each time Sheraz publishes a new article, please click here >>
Today's Must Read
Featured Reports
Entergy Corporation (NYSE:ETR) Tops Q2 Earnings, Revises View
Entergy reported solid Q2 earnings that beat analysts' expectations by 201.9%. The Zacks analyst believes that Entergy's strategy of becoming a pure-play utility will ensure a secure rate of return.
Gap (GPS) Curtails Outlook Despite Q2 Earnings & Sales Beat
The covering analyst thinks Gap's second-quarter results beat estimates, while being hurt by currency woes, tough retail scenario and softness across most brands.
Allstate (ALL) Q2 Earnings Beat, Gives Jul Cat Loss Estimate
Allstate's earnings beat resulted from higher premium in its property and liability segment plus higher contract charge and fees in the Allstate Financial segment, partly offset by high catastrophe loss.
Clovis (CLVS) Gets Priority Review from FDA for Rucaparib
The Zacks analyst is encouraged by Clovis' progress with lead pipeline candidate, rucaparib, which got priority review from the FDA.
Promising Pipeline, Collaborations to Boost Inovio (INO)
The covering analyst is encouraged by Inovio's progress with its lead candidate, VGX-3100. The company's collaboration efforts to accelerate the development of its pipeline are also impressive.
Regal Beloit (RBC) Plagued by Oil & Gas Sector Frailties
Regal Beloit's second-quarter 2016 results were severely impacted by the frailties in the oil and gas sector and the overall industrial end markets.
Aegerion (AEGR) Q2 Results Disappoint, Merger in Focus
The Zacks analyst believes that sales of Juxtapid will continue to be dampened by its withdrawal in the EU in the coming quarters.
New Upgrades
Foot Locker (NYSE:FL) Tops Q2 Earnings, Stock Poised for Growth
The Zacks analyst thinks sturdy comparable sales performance, cost containment efforts and other strategic initiatives helped Foot Locker post better-than-expected second-quarter results.
Bayer (DE:BAYGN) (BAYRY) to Gain from Key Products, Pipeline & Deals
The covering analyst believes that Bayer's top line will be driven by newly launched products in the Pharmaceuticals segment. The company's robust pipeline and deals bode well for growth.
Celanese (CE) Poised to Gain From Productivity, Expansion Actions
The Zacks analyst thinks that Celanese is poised to gain from cost savings through productivity actions and expansion initiatives. But pricing pressure and weak acetyl demand in China pose concerns.
New Downgrades
Estee Lauder (EL) Guides Cautiously Fearing Headwinds
Estee Lauder issued cautious guidance for 2017 despite posting decent Q4 results. The company thinks unfavorable currency fluctuations and uncertainty surrounding Brexit might hit top lines.
BNY Mellon's (BK) Margin Pressure to Hurt Revenue Growth
The covering analyst thinks margin pressure will continue to hurt BNY Mellon's revenue growth over the next few quarters. Further, the company faces higher litigation and restructuring expenses.
Maxwell's (MXWL) Transition Phase May Hurt Profitability
The Zacks analyst believes that the uncertainty related to the China bus market and short-term changes in the Chinese government's deployment strategy for wind turbines is affecting its performance.
WAL-MART STORES (WMT): Free Stock Analysis Report
NEXTERA ENERGY (NEE): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
ENTERGY CORP (ETR): Free Stock Analysis Report
BANK OF NY MELL (BK): Free Stock Analysis Report
AMER INTL GRP (AIG): Free Stock Analysis Report
Original post
Zacks Investment Research