Monday, January 8, 2018
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Alphabet (NASDAQ:GOOGL), Broadcom (NASDAQ:AVGO) and Procter & Gamble (PG). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Alphabet’s shares have outperformed the Zacks Internet Services over the last one year period (the stock is up +34.3% vs. +26.1% gain for the sector). Alphabet's strong advertising revenues and improving paid click growth remain the growth drivers. Its focus on innovation, AI, cloud, home automation space, strategic acquisitions and Android OS should continue to generate strong cash flows.
Alphabet has shown good execution to date, more or less maintaining its dominant share in a competitive, fast-growing search market. Its diversification strategy is also positive, but requires significant investment and involves uncertain payback periods, particularly since these efforts are at the cutting edge of technology. However, increasing litigation issues could continue to impact the company’s profits.
(You can read the full research report on Alphabet here >>>).
Shares of Strong Buy-rated Broadcom have handily beaten the technology sector as well as the red-hot semiconductor space over the last one year, gaining +53.5%. Also, estimates have moved north of late.
The company is benefiting from strong demand for its wireless solutions, which is expected to continue in the fiscal 2018. Higher dollar content at the company’s large North American smartphone customer’s next-gen platform is a key catalyst.
Broadcom’s expanding product portfolio makes it well-positioned to address the needs of rapidly growing technologies like Internet of Things (IoT) and 5G. Broadcom has strong ties with leading OEMs across multiple target markets that will help it to gain key insights into the requirements of customers.
Moreover, the upcoming launch of the next generation WiFi products is expected to be a growth driver for the segment. Further, increasing traction of 10G technology to support broadband video delivery will boost Wired Infrastructure revenues.
(You can read the full research report on Broadcom here >>>).
Buy-rated Procter & Gamble's shares have outperformed the Zacks Soap and Cleaning Materials industry over the last six months (+4.8% vs. +4.2%). The Zacks analyst likes its strong brand recognition, diversified portfolio, impressive product development capabilities and marketing prowess as well as strong cash flow productivity.
The company is investing in its brands and products as well as redesigning the supply chain to improve productivity and organic growth. Earnings estimates for fiscal 2018 and 2019 have also moved north over the last 30 days. However, slowing market growth, weak volumes and organic sales have been hurting sales.
A soft consumer-spending environment in developed markets and uncertainties in emerging countries also add to the worries. That said, P&G is speeding up innovations and investments to counter the softening industry growth. Its productivity improvements and cost-saving efforts are also consistently helping to boost profit level.
(You can read the full research report on Procter & Gamble here >>>).
Other noteworthy reports we are featuring today include Colgate (CL), NextEra Energy (NYSE:NEE) and CSX Corp (CSX).
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Dividends, Buybacks Buoy Nokia (HE:NOKIA) (NOK) Amid Networks Unit Woes
The Zacks analyst is impressed by the company's efforts to reward its shareholders. However, its Networks unit is likely to continue its below-par performance.
Cost Cuts Buoy CSX Corp. (CSX), High Debt a Woe
The Zacks analyst likes the company's efforts to check costs. Efforts to reward shareholders also impress. High debt levels and service disruptions raise concerns.
Acquisitions & Alliances Aid Market Axess' (MKTX) Growth
Per the Zacks analyst, the acquisition of Xtrakter Limited and alliances with BlackRock, S&P Dow Jones have enabled Market Axess to enter new markets that have aided its overall growth.
Cimarex Energy (XEC) to Gain From Oil-Rich Permian Acreage
Strong focus on the low-cost and lucrative Permian Basin will help Cimarex Energy generate significant cash flow for stockholders, according to the Zacks analyst.
Tractor Supply's (TSCO) Omni-Channel Efforts to Boost Sales
Per the Zacks analyst, Tractor Supply's 'One Tractor' initiative aims at connecting store and online shopping.
NextEra (NEE) Gains From Customer Growth and Investments
The Zacks analyst thinks NextEra Energy will benefit from planned investments of $40 to $44 billion in next few years.
Colgate's (CL) 2012 Restructuring Program to Drive Growth
Per the Zacks analyst, Colgate is on track with 2012 Restructuring Program and expects additional opportunities under the program to help reach the higher end of its previous cost and savings view.
New Upgrades
Vertex's (VRTX) Cystic Fibrosis Sales Solid, Pipeline Strong
The Zacks analyst stresses that sales of Vertex's two cystic fibrosis (CF) drugs - Kalydeco & Orkambi - are strong. Vertex's has also made decent clinical progress across multiple CF studies in 2017.
Electronic Brokerage Focus Aids Interactive Brokers (IBKR)
Per the Zacks analyst, Interactive Brokers' efforts to further strengthen its Electronic Brokerage segment and business restructuring plans are likely to enhance profitability over the long-term.
Solid Demand For Solero Platform Aids AngioDynamics (ANGO)
Per the Zacks analyst, AngioDynamics rides on the market's positive response to the Solero platform. The company is also a leading player in the thrombolytic catheters space.
New Downgrades
MRC Global (MRC) Troubled by Oil Price Inflation Risk
The Zacks analyst thinks that oil price upside will continue to hurt MRC Global's downstream businesses. Moreover, weakening Industrial segment's performance also remains a cause of concern.
Lower Gas Gathering Volumes Affect Kinder Morgan (NYSE:KMI)
Per the Zacks analyst, lower natural gas gathering volumes dent Kinder Morgan's pipeline businesses, due to lower natural gas yield in some US basins.
Capacity Overexpansion, High Fuel Costs Hurt Spirit (SAVE)
The Zacks analyst is concerned about capacity expansion outpacing traffic growth at Spirit Airlines. High fuel costs, however, are likely to limit bottom-line growth.
Procter & Gamble Company (The) (NYSE:PG): Free Stock Analysis Report
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
CSX Corporation (NASDAQ:CSX): Free Stock Analysis Report
Colgate-Palmolive Company (NYSE:CL): Free Stock Analysis Report
Broadcom Limited (AVGO): Free Stock Analysis Report
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