Thursday, June 30, 2016
Today's must-read reports are for Alphabet (NASDAQ:GOOGL) (GOOGL), Monsanto (NYSE:MON) (MON) and McKesson (NYSE:MCK) (MCK).
Google parent Alphabet's shares have lagged lately, with trends in estimate revisions generally on the negative side. Beyond the near-term issues, however, the analyst likes the company's efforts to improve accountability of its different business units and continue investing in long-term growth opportunities. (You can read the full research report on GOOGL here.)
Monsanto reiterated its full-year outlook, but the earnings release was broadly on the weak side. This is a tough environment in the agriculture space, even though Monsanto enjoys a leadership position on the seeds side. Key headwinds include weak commodity pricing, unfavorable currency movements and low acreage. (You can read the full research report on MON here.)
Earnings estimates for McKesson, a leader in the medical distribution space, have been going up lately following the company's raised guidance. The analyst likes the fact that McKesson has been actively pursuing deals and acquisitions to drive growth. In Mar 2016, the company undertook a restructuring plan to lower its operating costs given challenging business conditions. (You can read the full research report on MCK here.)
Other noteworthy reports we are featuring today include Nike (NYSE:NKE) (NKE), Caterpillar (NYSE:CAT) (CAT) and Goldman Sachs (NYSE:GS) (GS).
- Nike's (NKE) Mixed Quarterly Report
- Brexit Could Impact Caterpillar (CAT)
- Legal Costs Remain a Worry for Goldman (GS)
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
NIKE (NKE) Beats on Earnings, Currency Woes to Hamper FY17
Nike expects currency woes to linger in fiscal 2017 and impact results, aggravated by Brexit which has increased the volatility of global currencies.
Morgan Stanley's (NYSE:MS) Capital Plan Gets Conditional Approval
The bank has received only conditional approval for its plan, which must be resubmitted and may lead to a rise in operating expenses, according to the Zacks analyst.
AGCO (AGCO) Buys Cimbria, Expands Handling & Storage Business
The covering analyst believes the buyout will offer substantial marketing and cost-saving synergies and margin expansion.
Ecolab (NYSE:ECL) Plans to Buy France-Based Laboratoires Anios
Ecolab plans to acquire France-based Laboratoires Anios, which will expand its product portfolio and strengthen international presence, according to the covering analyst.
Toyota Replacements Adds to Autoliv's (ALV) Costs
The Zacks analyst believes that while Autoliv will incur costs in the recall of cars due to its faulty airbags, it will gain from innovative products, acquisitions & JVs
FactSet (FDS) Reports Mixed Q3 Results, Guides Well
FactSet reported mixed Q3 results as earnings beat estimates while revenues came in-line but provided encouraging guidance for the forthcoming quarter.
Weyerhaeuser (WY) Converts Preference Shares into Common Shares
Weyerhaeuser Company (NYSE:WY) will be converting its outstanding 6.375% Mandatory Convertible Preference Shares, Series A into its common shares effective Jul 1, 2016.
New Upgrades
Wynn Resorts (WYNN) Benefits from Higher Las Vegas Demand
The analyst highlights how Wynn Resorts' properties at Las Vegas are cashing in on the benefits of an improving employment rate, growing tourist numbers and increasing visitation pattern.
WPX Energy's (WPX) Oil Focus to Lift Performance
WPX Energy's strategy to boost oil volumes in its total production mix will help to generate higher revenues as prices of the commodity stabilize, according to the covering analyst.
Annaly (NLY) Bets on Portfolio Diversification
The Zacks analyst stresses that Annaly is focusing on further diversifying its array of investment and financing options and will acquire Hatteras Financial in keeping with this strategy.
New Downgrades
Legal Costs Linger Amid Goldman's (GS) Capital Plan Nod
The covering analyst thinks legal costs remain an issue for Goldman despite successfully clearing the Fed's stress test and receiving regulatory approval for its 2016 capital plan.
Brexit May Hurt Caterpillar (CAT) after Mining Woes
Already reeling under weak mining demand, Caterpillar has voiced concern over changes in trade rules for its UK base, as Brexit aftermath would affect its European supply chain.
ON Semiconductor (ON) Delays Fairchild Acquisition
The Zacks analyst thinks the delay in closing the Fairchild acquisition is a near term pressure despite other positives such as product breadth, diversification and restructuring.
NIKE INC-B (NKE): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
MCKESSON CORP (MCK): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
ALPHABET INC-A (GOOGL): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
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