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New Stock Research Reports For Merck, 3M And United Technologies

Published 05/25/2017, 02:28 AM
Updated 07/09/2023, 06:31 AM

Thursday May 25, 2017

Today's Research Daily features new research reports on 16 major stocks, including Merck & Co., Inc. (MRK), 3M Co (MMM) and United Technologies Corporation (NYSE:UTX). You can see all of today’s research reports here >>>

Merck shares have outperformed the Large Cap Pharmaceuticals industry over the last one year, gaining +15.1% versus the industry’s +3.4% increase. This momentum reflects the progress it has made with product pipeline and strong recent results; the company beat estimates in Q1 and raised guidance. While generic competition for several drugs and pricing pressures as are material in the Merck story as they are for many of its peers, the Zacks analyst points out that the company's new products like Keytruda and Zepatier hold great potential. The analyst discusses all of these issues in the updated research report issued today. (You can read the full research report on Merck here >>>)

3M shares are up +11.4% in the year-to-date period, outperforming the S&P 500 index (up +7.7%) and the Zacks Conglomerates sector (up +1%). Driving this momentum has been the company's successful efforts to align its portfolio to customer relevance, productivity and speed through a leaner operating structure. 3M is also standardizing its business processes through a new, global ERP system and expects $500–$700 million in annual operational savings by 2020. The impact of these showed up in the latest quarterly release when it guided higher. On the flip side, high pension expenses and exposure to commodity price risks remain significant headwinds. (You can read the full research report on 3M here >>>)

United Technologies shares have outperformed the Zacks Conglomerates sector as well as the S&P 500 index in the year-to-date period (the stock is up +11.6 vs. +1.1% gain for the sector) on the back of a revamped aerospace unit and improved growth outlook through strategic acquisition opportunities. While questions remain about the new administration's ability to ramp up defense spending, this favorable expectation is nevertheless a positive for the company. The improving outlook for the global economy is another macro tailwind for UTX. The company remains in excellent financial health and pays a stable dividend (currently yielding 2.2%), but value-oriented investors will likely have issues with the stock's current elevated valuation. (You can read the full research report on United Technologies here >>>)

Other noteworthy reports we are featuring today include Ford Motor Company (NYSE:F), Sherwin-Williams Co (SHW) and Humana Inc (NYSE:HUM).

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Sheraz Mian

Director of Research

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>>>

Featured Reports

Ford (F) Expands Production Capacity, Expects Lower Profits

The Zacks analyst thinks that the increased production capacity in many emerging markets will boost its sales, but higher costs are headwinds.

Energy Transfer (ETP) to Gain From Merger, Loft Yield an Issue

The Zacks analyst believes that Energy Transfer's merger with Sunoco will result in annual costs savings. But its failure to meet financial obligations is a concern.

PVH Corp.'s (NYSE:PVH) Brand Strength Drives Q1 Results & Outlook

Per the analyst, PVH Corp.'s solid first quarter show despite a tough industry landscape was backed by solid momentum across its premium brands.

Moody's (MCO) to Benefit from Acquisition, Revenue Growth

Per the Zacks analyst, Moody's should benefit from diversified revenue sources, dominant market position and synergies from strategic acquisitions.

Exelon (NYSE:EXC) Benefits from Regulated Investment, Debts a Woe

The Zacks analyst believes Exelon's ongoing investments to strengthen operation will drive performance of the company, but debt levels are a concern.

Henry Schein (NASDAQ:HSIC) Gains on Strategic Pacts, Global Growth

Per the Zacks analyst, Henry Schein is well positioned to gain consistently from its extensive global foothold and diverse channel mix. Also, several recent strategic tie ups are expected to add value.

Masco (MAS) Rides on Strength in Repair & Remodel Activity

Per the Zacks analyst, demand for Masco's repair & remodel activity will increase as the housing market improves, thereby driving revenues. Introduction of products should drive sales further.

New Upgrades

Raytheon (RTN) Grows on Strength in International Business

Per the Zacks analyst, Raytheon's rising Foreign Military Sales (FMS), support top-line in case of any drop in domestic sales. Gulf countries and Asia-Pacific demand boosted its FMS by 14% y-o-y.

Sherwin-Williams' (SHW) Valspar Buy to be a Major Catalyst

The Zacks analyst believes Sherwin-Williams' planned Valspar buy will make it a leading global paints and coatings provider by leveraging complementary offerings, strong brands and technologies.

Humana (HUM) Grows on Medicare Business, Inorganic Drive

Per the Zacks analyst, Humana's consistent revenue growth and margin expansion is driven by strong medicare business. Also, solid cash position backs several inorganic initiatives fueling growth.

New Downgrades

Dollar General (DG) Bearing the Brunt of Lower SNAP benefits

Per the Zacks analyst, Dollar General's shares have been hit hard lately due to price deflation and the reduction in SNAP benefits that are weighing on comparable-store sales performance.

Fortive (FTV) Battered by FX Volatility, Integration Issues

The Zacks analyst believes that increasing fluctuations in foreign currency rates will continue to hurt Fortive. Also, end market cyclicality and integration issues remain concerns.

Ulta Beauty (ULTA) Troubled by Volatile Consumer Patterns

Per the Zacks analyst, Ulta Beauty reels under limited global brand awareness and challenges related to changing consumer preference. However, the company's effective marketing strategy bodes well.



United Technologies Corporation (UTX): Free Stock Analysis Report

Sherwin-Williams Company (The) (NYSE:SHW): Free Stock Analysis Report

Merck & Company, Inc. (NYSE:MRK): Free Stock Analysis Report

3M Company (NYSE:MMM): Free Stock Analysis Report

Humana Inc. (HUM): Free Stock Analysis Report

Ford Motor Company (F): Free Stock Analysis Report

Original post

Zacks Investment Research

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