Monday, February 12, 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 Boeing (BA), Disney (DIS) and BlackRock (BLK). 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 >>>
Strong Buy-rated Boeing’s shares have surged +98.1% over the last one year, outperforming the Zacks Aerospace & Defense sector, which gained +47.8% during the same time period. Boeing ended 2017 on an impressive note, with its fourth-quarter earnings as well as revenues comfortably surpassing expectations.
Year over year results also reflected improvement. Notably, Boeing is the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries. In this regard, the company’s 20-year market outlook forecasts commercial jetliner demand to increase by 3.6%. Boeing expects single-aisle jets to be the major driver behind this demand growth.
Meanwhile, the Middle East has emerged as another promising market for Boeing. That said, this aerospace company continues to face challenges from stiff competition as well as falling delivery numbers.
(You can read the full research report on Boeing here >>>).
Shares of Disney have increased +1.7% over the last six months vs. the Zacks Media Conglomerates industry’s -2% decline in that same time period. Parks & Resorts division once again turned out to be the savior for Disney in first-quarter fiscal 2018.
The company delivered a positive earnings surprise after missing expectations in the preceding quarter. However, the big takeaway from the quarter was top-line performance, which surpassed the consensus mark for the first time in six quarters.
Further, Disney is acquiring majority of Twenty-First Century Fox’s assets, which includes its Film and Television studios, accompanied by cable and international TV businesses. The deal provides a bout of fresh air to Disney, which for quite some time now has been jostling in the fast changing media landscape.
The addition of Fox's rich library of movies and TV series would greatly enhance Disney’s prospects in the streaming service. However, falling subscribers at ESPN remain a concern.
(You can read the full research report on Disney here >>>).
Buy-rated BlackRock’s shares have outperformed the Zacks Investment Management industry in the last six months, (+21.8% vs. +7.7%). This performance is supported by impressive earnings surprise history as the company surpassed expectations in three of the trailing four quarters.
Its fourth-quarter 2017 results benefited from improvement in revenues, rise in assets under management (AUM) and steady long-term inflows, partly offset by higher expenses. The company is undertaking initiatives to restructure its actively managed equities business with an aim to meet changing client needs.
These, along with technological changes and its efforts to expand globally via acquisitions will further help top-line growth. However, mounting expenses mainly due to continued rise in marketing costs is likely to hurt the bottom-line growth to some extent.
(You can read the full research report on BlackRock here >>>).
Other noteworthy reports we are featuring today include General Motors (GM), Chubb (NYSE:CB) and Blackstone (NYSE:BX).
Wall Street’s Next Amazon (NASDAQ:AMZN)
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Mark Vickery
Senior Editor
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
Allergan's (NYSE:AGN) Key Drugs & Cost Cuts to Reduce Generic Woes
The Zacks analyst thinks drugs like Botox/Linzess, new drugs and cost cuts can shield it from potential sales drop.
Twitter (TWTR) Benefits From Growing Video Advertisements
Per the Zacks analyst, growing adoption of video ad products like Video Website Cards & Video App Cards is driving Twitter.
Marsh & McLennan (MMC) Grows on Revenues, Forex Risks Hurt
Per the Zacks analyst, although Marsh & McLennan's top line gets strengthened on inorganic growth, its exposure to foreign exchange risks continues to remain a concern.
Higher Premiums Continue to Aid Chubb (CB), Costs Ail
Per the Zacks analyst, improving premiums continue to boost revenues for Chubb, thereby improving overall performance.
D.R. Horton (DHI) to Benefit from Forestar Group Acquisition
The covering analyst stresses that D.R. Horton will benefit from expanding operations in Texas with its recent acquisition of 75% shares of Forestar Group.
Strong Crossover & Truck Sales Drive General Motors (GM)
Per the Zacks analyst, huge success with crossovers in January in the United States across various brands like Buick, Cadillac, Chevrolet, and GMC and robust truck sales are aiding General Motors.
Strategy for 2020 to Fuel Sysco's (NYSE:SYY) Bottom-Line Growth
Per the Zacks analyst, focus on enhancing consumers' experience; optimising business and achieving operational efficacy will help Sysco achieve 2020 target of growing earnings at double-digit rate.
New Upgrades
Medicare Expansion Aids Humana's (NYSE:HUM) Government Business
Per the Zacks analyst, Humana's Government Business, that significantly contributes to the company's top line, grows on continuous Medicare expansion initiatives.
Strong Commercial Aftermarket Catalyst for TransDigm (TDG)
Per the Zacks analyst, impressive traction of TransDigm's commercial aftermarket business, fueled by strong performance in the freight aftermarket, will continue to lend momentum to the company.
Financial Fitness Program to Fuel Tyson Foods (NYSE:TSN) Earnings
Per the Zacks analyst, Tyson Foods is set to gain from Financial Fitness Program, which aims at enhancing operational efficiency. This plan is expected to generate fiscal 2018 savings of $200 million.
New Downgrades
j2 Global (JCOM) Hurt by High Debt & Operating Expenses
The Zacks analyst is worried about the company's high operating expenses. This is hurting the bottom line significantly. The company's high debt levels also raise concerns.
Mounting Expenses, Higher Debt Levels Hurt Blackstone (BX)
Per the Zacks analyst, elevated expenses mainly due to higher compensation costs remain a key concern for Blackstone. Also, higher debt level lowers the chance of sustaining its dividend payment.
Business Model Transition, Higher Costs Hurt Teradata (NYSE:TDC)
Per the Zacks analyst, Teradata is being adversely impacted by its ongoing business transformation to cloud. Also, increasing costs has been a drag on profitability.
General Motors Company (NYSE:GM
Walt Disney Company (The) (NYSE:DIS
D/B/A Chubb Limited New (CB): Free Stock Analysis Report
The Blackstone Group L.P. (BX): Free Stock Analysis Report
BlackRock, Inc. (BLK): Free Stock Analysis Report
Boeing Company (The) (NYSE:BA
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Zacks Investment Research