Friday, July 1, 2016
This write-up features research reports issued by our team of analysts on 16 stocks, which we hand-picked from the roughly 80 research reports published by the team today. We are highlighting 6 of those stocks here, including Huntington Ingalls (HII), Wendy’s (WEN) and Eli Lilly (LLY).
Shares of defense contractor Huntington Ingalls, the sole designer and manufacturer of nuclear powered aircraft carriers in the U.S, have chalked up strong gains over the first half of the year. The analyst likes this Zack Rank # 2 (Buy) stock for its strong cash flows, solid financial profile and disciplined capital spending program. The company's focus on shareholder returns, through dividends and buybacks, is another positive. (You can read the full research report on HII here.)
Wendy’s shares have struggled lately. But estimates have started going up, likely in response to management's initiatives like menu innovation, international expansion and re-imaging efforts. The analyst likes Wendy's transition to a franchise-oriented business following the Arby sale given lower capex needs, reduced expenses and higher returns. (You can read the full research report on WEN here.)
Eli Lilly is the quintessential bluechip pharmaceutical player with a wide range of products that serve a vast number of therapeutic areas. The analyst likes the fact that it has been working on building its pipeline and has a wide range of compounds in different stages of development. Further, despite a major part of its top-lineexposed to generic competition over the last few years, Lilly remains committed to its dividend.(You can read the full research report on LLY here.)
Other noteworthy reports we are featuring today include Oracle (NYSE:ORCL) (ORCL), Carnival (LON:CCL) (CCL) and FedEx (NYSE:FDX) (FDX).
- Oracle (ORCL) Loses $3B Lawsuit
- Lower Guidance Pushes Carnival (CCL) Down to Zacks Rank # 4 (Sell)
- FedEx’s (FDX) Q4 Earnings Impress
You can find all of today's stock research reports here.
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 Zacks Top 10 Stocks portfolios. If you want an email notification each time Sheraz publishes a new article, please click here.
Today's Must Read
Featured Reports
Oracle (ORCL) Loses $3B Itanium Lawsuit against HPE
Oracle is mulling over appealing against the verdict, its second big legal defeat in the last two months.
Abbott (ABT) Poised To Grow With Key Acquisitions
The covering analyst thinks Abbott has a diverse portfolio which the company has reshaped through strategic acquisitions and divestitures.
FedEx (FDX) Delivers Impressive Q4 Earnings
Despite the outperformance, the fiscal 2017 outlook did not include the impact of the TNT Express acquisition, stresses the Zacks analyst.
MS Franchise Key Growth Driver for Biogen (NASDAQ:BIIB)
The covering analyst believes MS franchise sales and cost-cutting efforts should continue driving Biogen's performance.
Dollar General (DG) Looks Promising on Operational Strength
Commitment toward better price management, merchandise, cost containment and operational initiatives are major strengths, according to the Zacks analyst.
Lions Gate (LGF) to Acquire Starz for $4.4B
The covering analyst thinks since Lions Gate is dependent on the movie business, Starz's solid affiliate-fee-based income stream should be highly beneficial.
Alcoa (NYSE:AA) Seals $470M Multi-Year Contract with Embraer
The Embraer deal makes Alcoa the sole supplier for wing skins and fuselage sheet on the E2 aircraft.
New Upgrades
Hologic (HOLX) Zika Virus Tests Get FDA Approval
The Zacks analyst believes FDA Nods for its tests will aid growth given increasing incidences of Zika virus outbreaks.
Growth Potential Lifts Illinois Tool Works (NYSE:ITW)
The covering analyst believes Illinois Tool Works is well-placed to benefit from growth in end markets and contributions from Enterprise Initiatives.
PNC Financial (NYSE:PNC) Capital Plan Gets Nod
PNC Financial's 2016 capital plan won regulatory approval, indicating capital strength and effective cost control remains encouraging, according to the Zacks analyst.
New Downgrades
Carnival (CCL) Narrows Fiscal 2016 View
Carnival has tightened its full-year 2016 earnings guidance and now expects earnings in the range of $3.25-$3.35 compared with $3.20 to $3.40 guided earlier.
Cost & Regulatory Pressures Linger Over M&T Bank (NYSE:MTB)
The Zacks analyst believes litigations, tighter regulations and mounting expenses remain headwinds for the bank, despite regulatory approval for its 2016 capital plan.
BNY Mellon (BK) Weighed Down by Margin Pressure & Regulatory Concerns
The covering analyst believes persistent margin compression and stringent regulations remain concerns at BNY Mellon while higher legal and restructuring expenses will likely hurt growth.
WENDYS CO/THE (WEN): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
HUNTINGTON INGL (HII): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
CARNIVAL CORP (CCL): Free Stock Analysis Report
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Zacks Investment Research