Friday, November 4, 2016
Today's Research Daily features new research reports on 17 major stocks, including Johnson & Johnson (NYSE:JNJ), Wells Fargo (NYSE:WFC), Facebook (NASDAQ:FB) and Qualcomm (NASDAQ:QCOM).
Johnson & Johnson shares have bucked the broader healthcare slump this year and are up almost 12% year-to-date. While the company is faced with a number of headwinds like unfavorable currency movements, increased competition from generics, pricing pressures and an uncertain global macroeconomic backdrop, the analyst believes that JNJ's diversified business model, deep product pipeline, lack of cyclicality and financial strength position it for continued momentum going forward. We saw this in the company's Q3 earnings report when it beat on the top- and bottom-lines and provided favorable outlook. The analyst expects these trends to continue in the coming periods as well. (You can read the full research report on Johnson & Johnson here>>)
Wells Fargo has long maintained a reputation for disciplined and reliable operations and an attractive retail banking franchise. Recent quarterly results showing strong growth in loans and deposits reconfirm the bank's inherent strengths, but they have been totally offset lately by the sales practices controversy that has already cost the well regarded CEO his position. The new management team is making all the right moves and further downside risks in the stock may be low at this stage (the stock is already down more than -16% year to date vs. a roughly 2% decline for the peer banks), but it will likely take a while for clouds to fully lifted. (You can read the full research report on Wells Fargo here>>)
Facebook shares have lagged following the company's quarterly report when it came out with blowout numbers for the September period, but appeared cautious on future growth prospects. These near-term challenges notwithstanding, Facebook's status as a Technology powerhouse with an enviable future earnings potential remains unchanged. Driving this is the company’s huge user and advertiser base, higher engagement levels along with monetization opportunities presented by the Instagram, Oculus, Messenger and WhatsApp properties. (You can read the full research report on Facebook here>>)
Qualcomm shares have surged nearly 34% year-to-date. Qualcomm, which reported strong fourth quarter fiscal 2016 results, has entered into an agreement to buy Netherlands-based chipset giant NXP Semiconductors. The analyst likes this deal since the combined entity is likely to generate annual revenues of over $30 billion position itself as a strong player in the next-generation mobile chipset segment. However, regulatory proceedings against Qualcomm are a major headwind. (You can read the full research report on Qualcomm here>>)
Other noteworthy reports we are featuring today include Charter Communications (NASDAQ:CHTR), State Street Corp (NYSE:STT) and Molson Coors (TAP).
Free Access: All Zacks Research Reports
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Sheraz Mian
Director of Research
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Today's Must Read
Featured Reports
Charter Communications (CHTR) Posts Strong Third Quarter Earnings
The Zacks analyst believes that Charter Communications will continue to enjoy significant merger benefits going forward.
State Street (STT) Q3 Results Reflect Synergies from GE Deal
The covering analyst remains optimistic as the synergies from the GE Asset Management deal and the cost control initiatives will continue supporting State Street's bottom line growth.
Molson Coors (TAP) Beats Earnings; Sales Miss on Volumes
Despite volume declines, the Zacks analyst remains positive on the recent acquisition of 58% stake in MillerCoors.
Newmont's (NEM) Q3 Earnings Meet, Cost & Debt Cuts on Track
The Zacks analyst believes that Newmont should gain from its cost & efficiency actions, efforts to de-lever its balance sheet and progress with its key projects amid a volatile pricing environment.
Henry Schein's (NASDAQ:HSIC) Q3 Earnings Tops, Margins Slide
The covering analyst thinks the Q3 beat came on the back of strong share gains in both the North American and overseas markets.
Masco (MAS) Beats on Earnings and Revenues in Q3
The Zacks analyst thinks repair and remodeling activity will drive further demand for Masco's leading products.
SAP (SAP) Q3 Earnings Miss, Cloud Business Remains Strong
The covering analyst believes that the strength in its cloud business and new cloud booking levels will drive revenues.
New Upgrades
OGE Energy (OGE) Posts In-Line Q3 Earnings, Keeps '16 View
The Zacks analyst believes OGE Energy's steady investments in infrastructural and aggressive energy efficiency programs are driving growth. Its strong sales improvement also buoys optimism.
j2 Global (JCOM) Upgraded on Q3 Earnings Beat, Y/Y Rise
Both segments of j2 Global, Cloud Services and Digital Media saw good growth in revenues on a year over year basis. The y-o-y increase in earnings and revenues and dividend hike are also encouraging.
CONSOL (CNX) Q3 Loss Wider than Expected, Ups E&P View
The covering analyst believes CONSOL Energy (NYSE:CNX)'s focus on E&P assets is reaping benefits, even though the quarterly loss was wider than expected.
New Downgrades
Cerner (CERN) Downgraded on Q3 Earnings Miss, Cuts View
The Zacks analyst is bearish on Cerner's missing the Zacks Consensus Estimates for both earnings and revenue in Q3. Also expected lower hardware revenue in 2016 is a concern.
C.H. Robinson (CHRW) Downgraded on Q3 Earnings Miss, Y/Y Fall
The covering analyst is disappointed with the company's Q3 earnings miss. Also, revenues and earnings fell year over year due to the weak pricing environment.
Maxwell Technologies (MXWL) Reports Q3 Loss, Sales Down Y/Y
The Zacks analyst believes that Maxwell's quarterly results were affected by the latest subsidy changes in the China bus market, which have been causing certain revenue challenges in the short term
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
MOLSON COORS-B (TAP): Free Stock Analysis Report
STATE ST CORP (STT): Free Stock Analysis Report
QUALCOMM INC (QCOM): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
FACEBOOK INC-A (FB): Free Stock Analysis Report
CHARTER COMM-A (CHTR): Free Stock Analysis Report
Original post
Zacks Investment Research