Thursday, August 11, 2016
Today's must-read reports are for Priceline (PCLN), Time Warner (TWX), Public Storage (NYSE:PSA) and Southern Company (NYSE:SO).
Buy-rated Priceline's strong quarterly report has helped sustain the stock's positive momentum, which reflect the online travel vendor's impressive execution and strong growth in an otherwise tough macro environment. With almost 80% of its bookings coming from international markets, Priceline's guidance shows none of the issues that we saw with peers Expedia (NASDAQ:EXPE) and tripAdvisor. (You can read the full research report on PCLN here>>)
Time Warner shares have outperformed the large media space lately, a reflection of the company's leading content creation track record in films, TV and cable. The analyst likes the company’s Technology investments, of which the recent Hulu investment is just one part. The analyst likes these investments, including the HBO Now service, position Time Warner to profitably grow and operate in the shifting media landscape. (You can read the full research report on TWX here>>)
Estimates for Public Storage have come down following the storage REIT's weak June quarter results, with many in the market legitimately concerned about growing resort to promotions to drive occupancy. The stock has understandably suffered as a result, but our analyst likes REIT’s high brand value, strategic acquisitions and robust presence in key cities amid still reasonably healthy demand in the space. (You can read the full research report on PSA here>>)
Southern Company was mentioned in connection with the Delta Air Lines (NYSE:DAL) flight disruption issue, but the issue appears to have a Delta origin. Southern is a standout operator, with a good rate base growth and constructive regulation that are expected to continue drving the utility's earnings and dividend growth in the coming years through its long term power contracts. The stock is up almost 13% year to date and the momentum should continue going forward as well. (You can read the full research report on SO 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
Featured Reports
Noble Energy's (NYSE:NBL) Q2 Loss Narrower than Expected
The Zacks analyst believes that Noble Energy is monetizing its non-core assets to improve its liquidity.
PPG Industries (NYSE:PPG) Q2 Earnings Beat, Forex Weighs on Sales
The Zacks analyst believes that PPG will continue to gain from cost actions, synergies of acquisitions and healthy demand in the automotive market. But currency remains a drag on its top line.
Essex Property's (ESS) Q2 ResultS Solid, Deliveries Add to Woes
The Zacks Analyst thinks the decent operating performance in Q2 is encouraging, though high-apartment deliveries in the San Jose and San Francisco area are adding to woes.
Becton, Dickinson (BDX) Beats Q3 Earnings, FY16 View Up
The Zacks analyst believes Becton, Dickinson's solid third-quarter results reflect the strength in its product portfolio. The CareFusion merger has also opened up considerable growth avenues.
Helmerich & Payne's (NYSE:HP) Q3 Earnings Disappoint
While Helmerich & Payne has been able to manage its expenses, the Zacks analyst believes that decline in activity levels and spot pricing offset those gains.
Expeditors (EXPD) Q2 Earnings Top on Lower Costs, Sales Lag
Despite top line-related headwinds, the covering analyst believes that the Q2 Earnings beat is a positive. Expeditors' efforts to reward shareholders are also encouraging
Huntington (HBAN) Remains on Growth Track, High Costs Linger
Per the Zacks analyst, though costs related to mergers puts pressure on Huntington's expenses, the company stands to benefit from its new business model, strategic initiatives and organic growth.
New Upgrades
Priceline (PCLN) Beats Q2 Expectations on Both Counts
Priceline's Q2 earnings were driven by success across all of its brands. Its strength in international markets and growth opportunities in the domestic market are expected to remain bright spots.
Clovis (CLVS) 2Q Loss Narrower, Rucaparib Rolling NDA Filed
Clovis' second quarter loss was narrower-than-expected. The Zacks analyst is encouraged by the company's progress with its lead pipeline candidate, rucaparib, for which a rolling NDA has been filed.
Amerisafe (AMSF) Leads in High Hazard Insurance In Spite of Risks
Amerisafe holds niche position in the workers' compensation market. Driven by solid underwriting results, it produces favorable operating results; product concentration and soft markets are headwinds.
New Downgrades
Twenty-First Century Fox's (FOXA) Rising Costs Pose Concerns
The covering analyst believes that an increase in expenses, primarily due to higher sports programming costs may dent the company's margins and in turn the bottom line in the coming quarters.
TransDigm (TDG) Q3 Sales Miss, Weak Trends Mar Prospects
The Zacks analyst believes waning business jet and freighter revenues coupled with weak defense aftermarket orders are posing as major headwinds, thwarting TransDigm's prospects in the near-term.
Arena's (ARNA) Belviq Lags, Pipeline under Pressure
The Zacks analyst is concerned about the lackluster performance of Belviq. Moreover, the pipeline is under pressure with candidates still several years from commercialization.
TIME WARNER INC (TWX): Free Stock Analysis Report
SOUTHERN CO (SO): Free Stock Analysis Report
PUBLIC STORAGE (PSA): Free Stock Analysis Report
PRICELINE.COM (PCLN): Free Stock Analysis Report
TWENTY-FST CF-A (FOXA): Free Stock Analysis Report
BECTON DICKINSO (BDX): Free Stock Analysis Report
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Zacks Investment Research