Wednesday, July 20, 2016
Today's must-read reports are for UnitedHealth (UNH), Philip Morris (PM) and Thermo Fisher (TMO).
UnitedHealth shares have been strong performers lately, reflecting positive momentum in the health insurer's Optum business. The analyst also likes the company's international business and strong capital position that adds to its financial flexibility and shareholder returns. (You can read the full research report on UNH here.)
The analyst likes Philip Morris’ strong brand portfolio of brands which is crucial in helping it command a leading market share in the tobacco industry. The analyst's updated research report that came out today also refers to the company's efforts to launch new products to cater to the changing consumer tastes. The company has also done an excellent job of maintaining margins through effective cost contorls despite continued volume pressures. (You can read the full research report on PM here.)
Zacks Rank # 2 rated Thermo Fisher shares have gained more than 10% year-to-date on the back of steadily rising estimates. The company's growth profile has benefited from a combination of M&A moves like the Life Technologies and Affymetrix purchases and strong focus on emerging markets. With respect to the latter, the company plans to continue strengthening its foothold in emerging markets, such as China and India. (You can read the full research report on TMO here.)
Other noteworthy reports today include Ross Stores (NASDAQ:ROST) (ROST), American Express (NYSE:AXP) (AXP) and Quest Diagnostics (NYSE:DGX) (GM).
- Prologis (PLD) Q2 Earnings Impress
- Quest Diagnostics (DGX) Poised for Growth
- Ross Stores (ROST) Up to Zacks Rank # 2 (Buy)
- American Express (AXP) Down to Zacks Rank # 4 (Sell)
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 Top 10 portfolios.
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Today's Must Read
Featured Reports
Prologis (PLD) Q2 FFO Surpasses Estimates, Occupancy Up
The covering analyst is encouraged by Prologis' superior Q2 performance and believes that it is well poised to grow amid an e-commerce boom and supply-chain strategy transformations.
Quest Diagnostics (DGX) to Grow, Reimbursement Woes Worrying
While reimbursement issues linger ahead Q2 earnings the Zacks analyst expects solid organic growth on thriving esoteric testing business. New alliances should add value.
Cincinnati Financial (NASDAQ:CINF) Poised for Growth, Low Leverage a Boon
Share buybacks, consistent dividend hikes, low leverage and ample capital should drive Cincinnati Financial's growth.
Perrigo (PRGO) Poised for Growth on Acquisitions
The Zacks analyst feels that Perrigo's consistent strategic acquisitions are making way for expansion of its business and thereby driving growth, which is encouraging.
EOG Resources' (NYSE:EOG) High Return Projects to Offset Macro Risks
The Zacks analyst believes EOG Resources' large portfolio of high-return projects, strong technical competence and lower cost would offset the effects of weak commodity prices.
Waste Connections (WCN) Poised for Healthy Inorganic Growth
The merger of Waste Connections with Progressive Waste Solutions has arguably created an industry leader.
PerkinElmer (NYSE:PKI) Down on Europe and Japan Woes
According to the covering analyst, sluggish European macro-environment, restrained spending and challenges in Japan is expected to hurt top-line growth in the near term.
New Upgrades
Ross Stores' (ROST) Growth Plans on Track Amid the Hurdles
Ross Stores' ongoing merchandise efforts and relentless focus on store expansion will help it to battle macroeconomic hurdles and the competitive retail landscape, according to the Zacks analyst.
Ventas (VTR) to Benefit from Strategic Life-science Deal
The Zacks analyst thinks Ventas' 1.5 billion life-sciences real estate deal will help it to capitalize on the increasing health care research and development activities.
Vertex (VRTX) Poised for Growth on Cystic Fibrosis Franchise
The covering analyst believes Vertex is well-positioned for growth with both its cystic fibrosis (CF) drugs Kalydeco & Orkambi representing blockbuster potential. Vertex's CF pipeline is also strong.
New Downgrades
American Express Hurt (AXP) by Strong Dollar, High Expenses
The Zacks analyst thinks American Express' earnings will be pressurized by a strong dollar and increased expenses incurred to boost profitability.
Macroeconomic & Currency Woes to Hurt Snap-On (SNA)
Snap-On's growth remains vulnerable to weakness in regions like the Middle East and Asia-Pacific. Also, oil and gas volatility and soft industrial markets might impede growth.
Twitter (TWTR) struggling to grow user base, ad biz sluggish
The Zacks analyst feels sluggish user growth, increasing competition, restricted access in key regions like China and stringent regulations for social media platforms are key areas of concern.
UNITEDHEALTH GP (UNH): Free Stock Analysis Report
THERMO FISHER (TMO): Free Stock Analysis Report
ROSS STORES (ROST): Free Stock Analysis Report
PHILIP MORRIS (PM): Free Stock Analysis Report
PROLOGIS INC (PLD): Free Stock Analysis Report
QUEST DIAGNOSTC (DGX): Free Stock Analysis Report
AMER EXPRESS CO (AXP): Free Stock Analysis Report
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