Tuesday, August 16, 2016
Today's must-read reports are for Disney (DIS), ConocoPhillips (NYSE:COP) and Macy's (NYSE:M).
Macy's shares have spiked on the earnings announcement, helping the stock build on earlier momentum (the stock is up almost 14% year to date). In addition to top and bottom-line beats, the department store giant reiterated earlier guidance for the year and showed notable improvement in inventories level after two quarters of sub-par performance. Importantly, Macy's announcement a major restructuring that will involve the retailer reducing its store count by more than 10%. Estimates have been going up lately, pushing the stock to Zacks Rank # 2(Buy). (You can read the full research report on M here>>)
Disney shares have lagged this year on growing concerns about the long-term sustainability of ESPN's dominance in the changing media landscape of chord cutting and live streaming. In the updated research report issued today, the Zacks analyst discusses teh pros & cons of investing in Disney shares, but likes the growth outlook for the media giant's Parks & Resorts division. (You can read the full research report on DIS here>>)
ConocoPhillips didn't impress with its Q2 quarterly report and the company's hasn't benefited as much from this year's oil rebound as many of its peers have. But this underperformance and resultant valuation discount does offer a good opportunity for patient long-term investors given the company's attractive and relatively low-risk asset base in North America, Australia and Asia. (You can read the full research report on COP here>>)
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
Prudential Financial's (NYSE:PRU) Q2 Earnings Decline, Expenses Rise
Featured Reports
National Oilwell (NOV) Posts Narrower-than-Expected Q2 Loss
The Zacks analyst believes that the impressive business model of National Oilwell has resulted in the narrower-than-expected loss in second-quarter 2016.
Freeport's (FCX) Q2 Loss Wider, Focus Remains on Cost Cuts
Freeport's Q2 loss was wider than expected. The covering analyst thinks that aggressive cost reduction actions will help the company stay afloat amid a still weak copper pricing environment.
J. C. Penney (JCP) Posts Narrower than Expected Loss in Q2
The Zacks analyst thinks Q2 results reflect strength across all merchandise divisions, reduced expenses, improved margins and enhanced digital operations.
Seagate (STX) Beats Q4 Estimates on Increased Demand
Seagate provided an optimistic earnings outlook for FY17, which encourages the Zacks analyst.
Electronic Arts' (NASDAQ:EA) Strong Q1 Driven by Digital Sales
The covering analyst thinks higher digital sales and the release of new Battlefield and Titanfall games will boost revenues.
Franklin's (BEN) AUM Growth Muted, Cost Control on Track
According to the Zacks analyst, though assets under management growth currently remains muted, its solid business model, strong distribution platform and cost control should support growth.
Schwab's (SCHW) Revenue Growth Steady Amid Margin Pressure
The Zacks analyst thinks margin pressure will continue to persist as Schwab's business model is highly sensitive to interest rates.
New Upgrades
GW Pharma (GWPH) Incurs Narrower-than-Expected Q3 Loss
GW Pharma's Q3 results were good with the company reporting narrower-than-expected loss. The Zacks analyst thinks the company's progress with its lead pipeline candidate Epidiolex, is encouraging.
Asset Divestitures to Aid Devon Energy's (NYSE:DVN) Cash Flows
The covering analyst believes that Devon Energy's consistent efforts in divesting its non-core assets, along with cost-saving initiatives, will aid its cash flows.
Macy's (M) to Propel Growth via Strategic Endeavors
The Zacks analyst thinks sustained focus on price optimization, inventory management, merchandise planning and private label offering act as catalysts for its positive earnings surprise streak.
New Downgrades
Perrigo (PRGO) Misses Q2 Earnings Estimates, Cuts '16 View
Perrigo's Q2 results were disappointing with the company missing on earnings and surpassing revenues slightly. The Zacks analyst believes that the lowered outlook for 2016 is reason for concern.
Federal Realty's (FRT) Q2 FFO Beat, Revenues Miss
Despite the earnings beat, the covering analyst thinks that any appreciable fall in the tenants' abilities to pay base rent will negatively impact its operating results.
Roche (RHHBY) Faces Stiff Competition from Generics
The Zacks analyst thinks that the entry of generics, pricing pressure for some of its drugs and volatile business environment in the diabetes care business will adversely impact the top line.
SCHWAB(CHAS) (SCHW): Free Stock Analysis Report
PRUDENTIAL FINL (PRU): Free Stock Analysis Report
MACYS INC (M): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
CONOCOPHILLIPS (COP): Free Stock Analysis Report
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