Friday, November 25 2016
Today's Research Daily features new research reports on 16 major stocks, including Pfizer (NYSE:PFE) (PFE), Microsoft (NASDAQ:MSFT) (MSFT) and Priceline (PCLN).
Pfizer’s shares have been showing some weakness recently. Pfizer’s third quarter results missed expectations for both sales and earnings. But the analyst emphasizes that Pfizer is strengthening its product portfolio as well as pipeline through acquisitions and licensing deals. The Sep 2016 acquisition of Medivation has strengthened Pfizer’s cancer franchise.
Meanwhile, new products like Ibrance should do well and drive revenues. However, headwinds remain in the form of genericization, pricing pressure and rising competition, which will continue to hamper top-line growth. (You can read the full research report on Pfizer here.)
Microsoft’s shares have gained more than 8% this year. Microsoft reported impressive first-quarter 2017 results driven by strong cloud growth. The analyst likes its continuing enterprise strength, benefits from the Office 365 subscription model, strong growth prospects of Azure and promising new products.
Additionally, the expansion of Microsoft HoloLens in 6 new markets will improve the company's position in the augmented and virtual reality space. Further, the anticipated completion of the LinkedIn (NYSE:LNKD) acquisition will boost Microsoft's presence in the social media market. However, execution and foreign exchange risks remain despite its cloud focus. (You can read the full research report on Microsoft here.)
Priceline shares have surged, increasing by more than 19% year-to-date. Priceline reported strong third quarter results. Both agency and merchant businesses showed strong momentum. The analyst likes Priceline’s strong position in international markets, good execution, prudent marketing strategy and strong financial position.
The secular growth trend in the online travel booking market and growth opportunities in the domestic market are other positives. At the same time, weaker ADRs, macro headwinds, increasing advertising spend and occupancy tax-related litigation remain overhangs. (You can read the full research report on Priceline here.)
Other noteworthy reports we are featuring today include General Electric (NYSE:GE) (GE), Expedia (NASDAQ:EXPE) (EXPE) and United Continental (UAL).
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Today's Must Read
Featured Reports
Sempra Energy's (NYSE:SRE) Q3 Earnings Top Estimates, Up Y/Y
The Zacks analyst thinks that Sempra Energy's robust capital expenditure plans and steady focus on adding renewable assets to its portfolio will drive its growth in the future.
Expedia's (EXPE) Q3 Earnings Match Estimates, Revenues Beat
The covering analyst believes Expedia's Q3 revenues were boosted by market share gain in the managed corporate travel space. However, increased investments and competition remain headwinds.
L Brands (NYSE:LB) Q3 Earnings Beat, Provides Bleak Earnings View
The Zacks analyst thinks despite better-than-expected bottom line results, short term challenges, including expected softness at Victoria's Secret brand compelled management to provide a bleak view.
Campbell (CPB) Tops Q1 Earnings
The Zacks analyst believes solid Q1 earnings were backed by cost savings efforts. Campbell retained its outlook but a weak show by Campbell Fresh hurt organic sales.
O'Reilly (ORLY) Misses Q3 Earnings, Announces Acquisition
O'Reilly entered into an agreement to buy the assets of Bond Auto Parts, which is expected to be a good fit, per the covering analyst.
United Continental (UAL) to Launch Basic Economy Fares.
The company aims to keep pace with low-cost carriers through the new offering. Though positive on its expansion efforts, the Zacks analyst believes that recent labor deals will hurt earnings.
Dominion(D) Tops on Q3 Earnings & Revenues; Keeps View
The Zacks analyst believes Dominion's ongoing investment in regulated assets and clean energy will drive its performance in the long run.
New Upgrades
Discover Financial's (DFS) Growth Prospects Look Encouraging
The Zacks analyst thinks strength in credit card business will continue to aid Discover Financial's profits. Also, it should gain from favorable trends in the U.S. consumer finance industry.
Becton, Dickinson (BDX) Poised on Collaboration With JDRF
The covering analyst is bullish on the two year funding commitment from JDRF, a global organization funding type 1 diabetes research. This would fortify BD's position in the insulin infusion market.
Constellation Brands (NYSE:STZ) Looks Attractive on Growth Plans
The Zacks analyst thinks Constellation Brands' solid portfolio of brands, along with its focus on brand building and business expansion, give it a competitive edge and bolsters its market position.
New Downgrades
General Electric (GE) Faces Sustained Macroeconomic Woes
General Electric lowered its guidance due to a highly volatile environment and sluggish growth across the globe. Significant order backlog and foreign currency volatility remain additional headwinds.
Lower Revenue and Competition Woes Hurt Cerner (CERN)
The covering analyst believes that a highly competitive market for HCIT and growing proportion of low-margin services will affect performance. Also expected lower hardware revenue in 2016 is a concern.
Toyota's (TM) $3.4B Settlement to Weigh on Financials
Toyota agreed to settle a US truck lawsuit by paying $3.4 billion, which will weigh on its financials. A string of product recalls and declining sales outside Japan are other concerns per the Zacks analyst.
UNITED CONT HLD (UAL): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
PRICELINE.COM (PCLN): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis Report
EXPEDIA INC (EXPE): Free Stock Analysis Report
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