Monday, November 14 2016
Today's Research Daily features new research reports on 16 major stocks, including Procter & Gamble (PG), Berkshire Hathaway (NYSE:BRKa) (BRK.B) and Altria (MO).
Procter & Gamble’s shares have gained more than 5% year-to-date. The analyst likes its strong organic sales, which grew 3% in the first quarter, marking the best performance in over two years. The company’s first-quarter earnings and revenues also beat expectations. Productivity improvements and aggressive cost-saving efforts have consistently improved margins with the trend expected to continue going ahead. However, P&G has been struggling to boost market growth over the past few quarters. Negative forex impact, weak volumes, divestures and slowing market growth has also been hurting sales. (You can read the full research report on Procter & Gamble here.)
Berkshire Hathaway’s shares have surged, gaining more than 18% year-to-date. The analyst likes the company’s inorganic story, which remains impressive with strategic acquisitions such as stakes in Apple (NASDAQ:AAPL). Berkshire Hathaway’s third-quarter earnings per share beat expectations. Its strong cash position also allows it to make earnings-accretive bolt-on acquisitions.
A sturdy capital level also adds to overall strength. However, the company’s catastrophe exposure, Buffett’s succession and huge capital expenses on account of railroad operations remain headwinds. (You can read the full research report on Berkshire Hathaway here.)
Altria’s shares have increased by more than 6% year-to-date. The analyst is optimistic about Altria’s subsidiary, Nu Mark LLC, which expanded the distribution of MarkTen XL e-vapor products and Green Smoke e-cigarettes in several lead markets. Altria’s third-quarter earnings surpassed expectations on strong performance by leading premium brands in the core tobacco category.
Overall, the company’s growing market share in the e-cigarette category and efforts to adapt to the evolving consumer trends and develop less harmful alternative tobacco products are encouraging. However, higher fees associated with litigations and the FDA’s anti-smoking campaigns are hurting profitability. (You can read the full research report on Altria here.)
Other noteworthy reports we are featuring today include Pepsi (PEP) and Nordstrom (NYSE:JWN).
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Sheraz Mian
Director of Research
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Today's Must Read
Featured Reports
CBS Corp. (NYSE:CBS) Beats Earnings & Revenue Estimates in Q3
CBS Corp. topped both earnings and revenue estimates in third-quarter 2016. The Zacks analysts thinks CBS' sustained focus on increasing subscription-based revenues bodes well for long-term growth.
Archer Daniels (ADM) Returns to Earnings Beat Trend in Q3
The covering analyst thinks Archer Daniels bounced back with an earnings beat in third-quarter 2016, gaining from improved operating conditions.
Public Service (PEG) Tops Q3 Earnings, Misses Sales Estimate
The Zacks analyst thinks robust capital investment projects backed by its stable liquidity position boosted Public Service Enterprise's Q3 results.
AmerisourceBergen (NYSE:ABC) Tops Q4 Earnings
The covering analyst believes that strong performance of generics & new product launches should drive growth in the upcoming quarters.
American Water Works (AWK) Beats Q3 Earnings
The Zacks analyst believes American Water Works is well poised to gain from its ongoing capital investments and strategic acquisitions.
WestRock (WRK) Q4 Earnings Beat
WestRock is halfway toward its targeted $1 billion per year synergy and performance improvement target. The covering analyst also lauds WestRock's investment in growth and capital allocation strategy.
Cardinal Health (NYSE:CAH) Tops Q1 Earnings
The Zacks analyst is bullish on Cardinal Health's solid first quarter results backed by both the Pharmaceutical and Medical segments. However ongoing generic pricing pressure remains a major concern.
New Upgrades
EnerSys (ENS) Continues Its Earnings Beat Streak in Q2
The Zacks analyst thinks EnerSys' earnings beat was driven by operational efficiencies and improved product mix. Solid prospects in Asia and accretive acquisitions bode well for its future growth.
Nordstrom (JWN) Tops Q3 Earnings & Sales, Raises Outlook
The Zacks analyst thinks solid third-quarter results and raised view were backed by operational efficiencies and robust sales, which were aided by favorable shift of the Anniversary Sale event.
Pepsi's (PEP) Marketing Efforts to Spur Growth
The Zacks analyst believe Pepsi's new product lineup, aggressive marketing, productivity improvement and cost-saving initiatives should give a boost to profits.
New Downgrades
GameStop's (NYSE:GME) Soft Video Game Sales a Major Concern
The covering analyst believes that lately, soft video games sales have been a major concern for GameStop. This has persuaded management to lower its third-quarter and fiscal 2016 projection.
Novo Nordisk (CO:NOVOb) (NVO) Hit by Generic Threat & Patent Expiry
The Zacks analyst believes that generic threat for several of its products and well as patent expiration issues will continue to be a major hindrance to the company's growth.
The covering analyst thinks BioScrip is witnessing year-over-year drop in revenues due to lower-than-expected core sales volumes. However management is optimistic about Home Solutions Integration.
PROCTER & GAMBL (PG): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
ALTRIA GROUP (MO): Free Stock Analysis Report
CARDINAL HEALTH (CAH): Free Stock Analysis Report
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report
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Zacks Investment Research