Wednesday, June 20, 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 Schlumberger (SLB), Walgreens Boots (WBA) and BNY Mellon (BK). 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 >>>
Schlumberger’s shares have outperformed the Zacks Oil and Gas - Field Services industry over the last year, gaining +0.4% vs. -5.8%. Schlumberger is the largest oilfield services player in the world with presence in every energy market across the world.
Also, in all the operating business segments, the company is among the top players. The firm has been banking on growing hydraulic fracturing work in the U.S. land market. The Zacks analyst thinks that being the leading provider of technology for complex oilfield projects, Schlumberger is better positioned than most peers to take up new offshore projects in the shallow water basins outside North America.
However, the company’s rising project startup costs are a concern. Schlumberger’s total debt is four times its total cash balances. Compared with its peer group, the firm has higher long-term debt to equity ratio, which reflects more levered balance sheet.
(You can read the full research report on Schlumberger here >>>).
Shares of Walgreens Boots have underperformed the Zacks Drug Stores industry over the last year, losing -17.3% vs. -13.2%. Walgreens Boots' last-reported second quarter fiscal 2018 marked the company's highest sales in the last eight quarters. Also, the company's increase in sales at the Retail Pharmacy International is encouraging.
Moreover, the company has been gaining on account of strategic tie-ups. The Zacks analyst is currently looking forward to the company’s alliance with Express Scripts aiming to expand their existing group purchasing efforts.
This apart, the company’s decision to acquire a 40% stake in Sinopharm Holding Guoda Drugstores in China looks promising as it should provide a strong impetus to Walgreens Boots’ worldwide retail pharmacy business. However, declining Retail Pharmacy sales was a disappointment. Also, ongoing generic drug inflation is hurting Walgreens' pharmacy margin. The company faces tough competition along with currency fluctuations.
(You can read the full research report on Walgreens Boots here >>>).
BNY Mellon’s shares have outperformed the Zacks Major Regional Banks industry in the last three months (+4.9% vs. -5.3%). The company has an impressive earnings surprise history, having surpassed expectations in three of the trailing four quarters. Higher interest rates, rising loan demand and steadily improving fee income are expected to aid revenue growth.
Also, potential lesser regulations, lower tax rates and cost-saving initiatives are likely to drive profitability in the quarters ahead. However, the Zacks analyst thinks concentration risk arising from significant dependence on fee-based income remains a matter of concern. If there is any change in individual investment preferences, regulatory amendments or a slowdown in capital market activities, it might hamper the company's financials.
(You can read the full research report on BNY Mellon here >>>).
Other noteworthy reports we are featuring today include Accenture (ACN), Stryker (SYK) and Duke Energy (DUK).
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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
Cenovus (CVE) Gains on Oil-Sand Projects, Blending Cost Ails
Per the Zacks analyst, while Cenovus' strong presence in Alberta's oil-sand projects should boost the company's output, rising blending expenses and declining free cash flow will spoil its growth.
Solid Adoption of HCM Suite Aids Ultimate Software (ULTI)
Per the Zacks analyst, Ultimate Software's robust adoption of its flagship SaaS solution, UltiPro HCM product suite and expanding product portfolio are key catalysts.
Capital Expenses, Market Volatility Hurt Duke Energy (DUK)
Per the Zacks analyst, Duke Energy will incur expenses of $920 million upto 2022 to comply with environmental rules.
Loan Growth, Higher Rates and Lower Taxes Aid KeyCorp (NYSE:KEY)
Per the Zacks analyst, KeyCorp is well poised for revenue growth driven by loan growth and higher interest rates.
Praxair (NYSE:PX) Rides on Growing Demand for Industrial Gases
Per the Zacks analyst, focus on new products and improving gas distribution abilities will help Praxair capitalize on the rising demand for industrial gases driven by improving industrial production.
High Industrial Real Estate Demand to Drive Prologis (PLD)
Per the Zacks analyst, Prologis is well poised to benefit from high demand for industrial real estate space.
Domino's (DPZ) Benefits From Global Expansion & Franchising
Per the Zacks analyst, Domino's global expansion strategies will aid the company's revenues, as majority of it is derived from non-U.S. countries, while franchising will drive earnings.
New Upgrades
Praxair (PX) Rides on Growing Demand for Industrial Gases
Per the Zacks analyst, focus on new products and improving gas distribution abilities will help Praxair capitalize on the rising demand for industrial gases driven by improving industrial production.
Royal Dutch Shell (LON:RDSa) (RDS.A) to Gain from Growing LNG Demand
The Zacks analyst believes that Shell's position as a major supplier of LNG should help the company meet the fuel's growing demand and help cash flow to grow even further.
Stryker (SYK) Gains Ground on Mako Total Knee Platform
Stryker's flagship Mako Total Knee Platform has consistently driven the company's topline. The Zacks analyst is also bullish about Stryker's strong international presence.
New Downgrades
Generic Competition, Sandoz Woes Weigh On Novartis (NVS)
Per the Zacks analyst, the decline in sales due to pricing pressure for generic division Sandoz and loss of patent protection for some key drugs will adversely affect Novartis' sales.
Accenture (ACN) Hurt by Pricing Pressure, Integration Risk
The Zacks analyst is worried about the pricing pressure faced by Accenture due to stiff competition from rival companies. Further, buyout related integration risks are likely to hurt the company.
Input Cost Inflation to Hurt General Mills' (NYSE:GIS) Profits
Per the Zacks analyst, General Mills' profit is likely to continue being hurt by rising freight, commodity and operational costs.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA
Stryker Corporation (NYSE:SYK
Schlumberger Limited (SLB): Free Stock Analysis Report
Duke Energy Corporation (NYSE:
The Bank of New York Mellon Corporation (NYSE:BK
Accenture PLC (ACN): Free Stock Analysis Report
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Zacks Investment Research