Friday, July 8, 2016
This write-up features research reports issued by our team of analysts on 17 stocks, which we hand-picked from the roughly 80 research reports issued by the team today. We are highlighting 7 of those stocks here, including Bristol-Myers (BMY), Lowe’s (LOW) and Ingersoll-Rand (IR).
Bristol-Myers shares have outperformed the market this year, reflecting the relative stability and safety of the pharmaceutical major's earnings and cash flows on the back of the company's strong cancer portfolio. The analyst likes this Zacks Rank # 2 (Buy) rated company's developing drug pipeline and presence in other core therapeutics areas like immunoscience, cardiovascular diseases, and virology among others. The analyst believes that the Cormorant acquisition should help boost the company's immuno-oncology pipeline. (You can read the full research report on BMY here.)
Lowe’s shares have outperformed Home Depot (NYSE:HD) (HD) this year, driven largely by greater market appreciation for the number two home-improvement retailer's efforts to narrow the performance gap with its larger peer. The analyst likes Lowe’s omni-channel endeavors, merchandising initiatives and strategic acquisitions and the company's strengthening position in the home improvement space. This Buy-rated company remains well positioned to benefit from the improving labor market bacdrop, as this morning's strong June non-farm payroll report reconfirms, and the gradual housing market recovery. (You can read the full research report on LOW here.)
Ingersoll-Rand shares have lagged lately on concerns about the impact of mild summer weather on its air-conditioning business (market leading brands like Trane and Thermo King are part of its Climate Solutions business, which accounts for roughly two-thirds of its total revenues). But this Zacks Rank # 2 (Buy) stock is still up an impressive 18% year-to-date and remains well positioned for the long run given the company's opportunistic portfolio changes, strong free cash flow generation and a track record of operational improvements. (You can read the full research report on IR here.)
Other noteworthy reports today include Abbott (ABT), Walgreens Boots (WBA) McDonald's (NYSE:MCD) (MCD).
- Abbott (ABT) Heart Stent Gets FDA Nod
- Walgreens Boots’ (WBA) Q3 Earnings Beat
- Frontier Communications (NASDAQ:FTR) Upgraded to Buy
- McDonald's (MCD) Down to Zacks Rank # 4 (Sell)
You can find all of today's stock research reports here.
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. If you want an email notification each time Sheraz publishes a new article, please click here.
Today's Must Read
Featured Reports
Abbott (ABT) Gets FDA Approval For Heart Stent Absorb
The Zacks analyst thinks that the FDA approval of the heart stent Absorb will boost the vascular division.
Enterprise (EPD) Ups Quarterly Distribution
The covering analyst feels that with its relatively low risk earnings growth and a steadily rising dividend yield, the stocks is an attractive choice.
Walgreens Boots' (WBA) Q3 Earnings Beat, Gross Margin Falls
Walgreens Boots' fiscal third-quarter earnings beat estimates, but revenues came in under par.
Kimco's (KIM) Q2 Deals Exceed $1 Billion, 2020 Vision on Track
Kimco's strategic 2020 Vision remains on track with the company revealing second-quarter 2016 deals worth over $1.0 billion, according to the Zacks analyst.
Netflix (NASDAQ:NFLX) Content Deals Positive, Rising Costs Worrying
The covering analyst thinks Netflix's deal with CW, Comcast (NASDAQ:CMCSA) and Disney will attract more users but rising costs remains a concern.
Coca-Cola Volumes (KO) Improving in North America
The Zacks analyst thinks Coke's increased marketing investments are improving volume growth, especially in North America.
U.S. Bancorp's (USB) Capital Plan Receives Fed Approval
U.S. Bancorp has gained from Fed approved capital actions, according to the covering analyst.
Prologis (PLD) Build-to-Suit Activity Strong, Closes 16 in 1H
The Zacks analyst thinks Prologis build-to-suit activity remains solid this year with the company completing 16 such projects in the first half.
New Upgrades
Buffalo Wild Wings' (BWLD) Sales Initiatives Hold Promise
The Zacks analyst believes sales initiatives like menu innovation, promotional offers coupled with consistent unit expansion and operational efficiency will continue to drive revenues.
Frontier Comm. (FTR) Upgraded to Buy on Growth Prospects
The covering analyst believes that Frontier Communications' strong momentum of broadband subscriber growth will continue in 2016 on the back of new marketing plans and programs.
McCormick (NYSE:MKC) Tops Q2 Earnings, Grows on Acquisitions
McCormick's second quarter earnings beat estimates while revenues came in-line. The Zacks analyst thinks McCormick is building sales through acquisitions and growing profits through cost savings.
New Downgrades
McDonald's (MCD) Potential Dims on Near-Term Concerns
McDonald's exposure to risks like higher labor costs, forex movements, decelerating growth in Asia and stiff market competition remain prime causes of concern, according to the Zacks analyst.
Strong Dollar, Low interest Rates Hurting Metlife (MET)
The covering analyst thinks low interest rates will eat into Metlife's investment income while a strong dollar, global economic weakness and stiff competition will weigh on earnings.
Carnival (LON:CCL) Profits Hit by Multiple Adverse Factors
The covering analyst stresses that negative currency translation, macroeconomic issues and increased marketing expenses remain potent headwinds for Carnival.
WALGREENS BAI (WBA): Free Stock Analysis Report
MCDONALDS CORP (MCD): Free Stock Analysis Report
LOWES COS (LOW): Free Stock Analysis Report
INGERSOLL RAND (IR): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
ABBOTT LABS (ABT): Free Stock Analysis Report
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Zacks Investment Research