Thursday, October 6, 2016
Today's Research Daily features new research reports on 16 major stocks, including Costco (NASDAQ:COST), ExxonMobil (NYSE:XOM) and Bristol-Myers (BMY).
Costco shares have been laggards lately as earnings performance has been weighed down by stiff competition and cautious consumer spending trends. However, the analyst emphasizes that Costco continues to be one of the dominant retail wholesalers based on its breadth and quality of merchandise offered. Also, the company’s diversification strategy acts as a natural hedge against risks that may arise in specific markets. (You can read the full research report on Pepsi here>>)
ExxonMobil shares have outperformed the broader market this year on the back oil's positive momentum, though the stock has lagged oil-ier super majors like Chevron (NYSE:CVX) and the major E&P's. This reflects the oil giant's balanced business mix that make it a relatively defensive oil play; the stock doesn't rise as much as its peers in a rising oil price environment, but it doesn't fall by that much when the commodity is heading south either. With a stable cash position, Exxon Mobil’s balance sheet is one of the best in the industry. Exxon's safe and stable dividend (currently yielding an attractive 3.5%) is another key positive. (You can read the full research report on ExxonMobil here>>)
Bristol-Myers shares have been depressed for some time now and are down 20% year-to-date. The company raised its guidance for 2016 earnings once again, buoyed by strong trends across the business, primarily Opdivo and Eliquis. The analyst likes Bristol-Myers’ efforts to develop its pipeline. It has been working on strengthening its product portfolio as well as its pipeline through acquisitions and deals. Also, Bristol-Myers is working on expanding the label of approved drugs including Opdivo, Orencia and Yervoy. (You can read the full research report on Bristol-Myers here>>)
Other noteworthy reports we are featuring today include Shire (SHPG), Baxter (BAX) and Darden (DRI).
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You can find all of today's stock research reports here>>
Sheraz Mian
Director of Research
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Today's Must Read
Featured Reports
Weyerhaeuser (WY) to Sell North Pacific to One Rock
The Zacks analyst thinks Weyerhaeuser's deal to sell-off its printing papers business will enable the company to focus on its core timber, land, and forest products business.
Carnival (LON:CCL) Posts Strong Q3 Results; Prospects Bright
The Zacks analyst believes that efforts to drive demand and higher revenues aided Carnival to beat on Q3 earnings. The company also upped its earnings outlook on the back of strong booking trends.
Washington Federal (WAFD) Enhances Shareholder Returns
The covering analyst thinks Washington Federal's additional share buyback authorization will enhance shareholder value. However, escalated expenses remain a headwind.
State Street (STT) Hikes Dividend, Growth Looks Impressive
The Zacks analyst thinks State Street is also set to capitalize on growth opportunities based on its sturdy capital position.
Rare Disease Portfolio to Boost Shire (SHPG), Risks Remain
The covering analyst thinks that Shire's rare disease portfolio coupled with recent acquisitions should propel the company's growth prospects further. However, generic competition remains a concern.
Marathon Petroleum's (NYSE:MPC) Scale Advantage to Fuel Growth
The covering analyst likes Marathon Petroleum for its scale advantage, impressive asset quality and extensive midstream/retail network.
Baxter (BAX) Poised on New Launches, Cyclophosphamide Woes Hurt
The Zacks analyst think Baxter will gain from new launches like intravenous nutrition product NUMETA G13E. Lower cyclophosphamide sales will hurt the Integrated Pharmacy Solutions franchise business
New Upgrades
Darden (DRI) Poised for Growth Post Q1 Earnings
The Zacks analyst remains upbeat on Darden post its Q1 earnings performance. Sales initiatives like menu innovation, technology-driven moves along with efforts to curtail costs should drive growth.
Omnicom (OMC) Shows Promise for Healthy Long-Term Growth
The Zacks analyst thinks increasing demand for media services, speedy growth of technologies, massive proliferation of channels and strategic acquisitions will improve the Omnicom's top line
CarMax (NYSE:KMX) Gains from Store Expansion, Share Buyback
According to the covering analyst, CarMax's focus on the used-vehicle market, aggressive store-expansion and share repurchases should help it outperform peers.
New Downgrades
Weak End-Markets Dampen ABB Ltd.'s (ABB) Growth Prospects
According to the Zacks analyst, weak end markets and FX headwinds will continue to offset gains from ABB's "Next Level Strategy", lucrative partnership deals & infrastructure market stronghold.
MarketAxess (MKTX) Hurt by Rising Expenses, High Competition
The covering analyst believes that rising expenses, intense competition due to increased market consolidation and stringent regulations are some of the headwinds faced by the company.
Analog Devices (ADI) Hit by Sluggishness in Consumer Market
The Zacks analyst believes that though Analog Devices' strength in the industrial, auto and communication markets is a positive, it is largely offset by significant weakness in the consumer business.
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
SHIRE PLC-ADR (SHPG): Free Stock Analysis Report
DARDEN RESTRNT (DRI): Free Stock Analysis Report
COSTCO WHOLE CP (COST): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
BAXTER INTL (BAX): Free Stock Analysis Report
Original post
Zacks Investment Research