Thursday, December 1 2016
Today's Research Daily features new research reports on 16 major stocks, including Broadcom (AVGO), PNC Financial Services (PNC) and ConocoPhillips (COP).
Buy rated Broadcom shares have handily beaten the technology sector as well as the broader market in the year-to-date period, but lag the red-hot semiconductor space. The analyst likes the synergistic benefits gained from the merger with Avago, which will drive future profitability. In addition, the company maintains an efficient global supply chain with a variable, low-cost operating model that enables it to maintain sustainable revenue growth and expand margins. Broadcom is expected to benefit from rapid increases in data center IP and mobile data traffic to emerge as the undisputed leader in the enterprise storage market. The stock currently carries Zacks Rank # 2 (Buy), with a VGM Score of 'B'. (You can read the full research report on Broadcom here>> )
PNC Financial Services shares lagged the S&P 500 index through last month's election, but have turned around in a notable way since November 8th, as have other bank stocks. The stock is up more than 14% since the election, outperforming both the Finance sector as well as the broader market. Driving the stock is the recent upturn in long-term interest rates and expectations of regulatory overhaul. While these favorable macro developments are helpful to all banks, the analyst likes PNC for its cost saving initiatives and consistent growth in loans and deposits and fee income. (You can read the full research report on PNC Financial Services here>> )
ConocoPhillips shares have surpassed those of major U.S. oil and gas integrated companies over the past one year, gaining nearly 4%. The analyst stresses that ConocoPhillips is touted to be the largest exploration and production player in the world, based on proved reserves and production. OPEC's recent decision to cut production for the first time since 2008 is likely to assist the global oil prices to stabilize and further improve ConocoPhillips stock price. Multinational oil enterprises (like COP), on the back of greater certainty, will now be able revive spending on drilling activities. Improvement on the cost front is another positive. However, until the uncertainty and volatility in oil prices subside, there is limited upside from current levels. (You can read the full research report on ConocoPhillips here>> )
Other noteworthy reports we are featuring today include Zoetis (ZTS), General Dynamics (GD) and Sinopec (SNP).
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Today's Must Read
Broadcom (AVGO) Set to Expand StrataDNX Product Family
Principal Financial's (PFG) Inorganic Portfolio Impresses
ConocoPhillips (COP) to get a Boost from OPEC's Decision
Advanced Micro (AMD) Set to Unveil Zen-based Desktop CPU
The Zacks analyst believes that Advance Micro's improving position in key markets driven by the launch of several APUs and GPUs and new products like Zen will drive top-line growth in the long run.
Radian Group (RDN) Benefits from Declining Delinquency
The covering analyst thinks that Radian Group is poised for long-term growth on expansive mortgage and real estate service offerings, declining delinquency and improving risk-based capital ratio.
Texas Capital (TCBI) Exhibits Organic Growth; Costs Pressure Persist
The Zacks analyst believes Texas Capital continues to gain from organic growth aided by rising loans and deposits along with revenues. However, high expenses and margin pressure remain concerns.
Sinopec's (SNP) Cost Structure Looks Impressive
The covering analyst appreciates Sinopec's efforts to improve cost structure over the last nine months despite unfavorable business scenario.
Principal Financial's (PFG) Inorganic Portfolio Impresses
The Zacks analyst believes that Principal Financial's inorganic story will continue to impress, while it remains focused on capital deployment to boost shareholders' value.
ArcelorMittal (MT) to Gain from Cost & Debt Cuts, Expansion
The covering analyst is encouraged by ArcelorMittal's actions to cut debt and costs which should lead to better operational performance.
Masco's (MAS) Cost Saving Plans Driving Margins, Fx Hurts
The Zacks analyst thinks cost-saving initiatives have been driving the company's margin in the past few quarters.
Zoetis (ZTS) Thriving on Product Portfolio, Cost Savings
The Zacks analyst believes that Zoetis' diversified product portfolio, global footprint and its cost saving efforts will help drive both the top and the bottom line at the company.
Sysco (SYY) Gaining from Acquisitions and Volume Growth
The covering analyst believes that Sysco's focus on acquisitions, volume growth, and margin improvement will drive revenues and earnings ahead, despite deflationary headwinds.
Citizens Financial's (CFG) Efficiency Initiatives Drive Growth
The Zacks analyst remains optimistic about Citizen Financial's growth prospects owing to the company's continued loan growth and focus on revenue and efficiency initiatives.
A.O. Smith (AOS) Hurt by Steel Price Hike & Rising Costs
A.O. Smith's margins have been hurting from steel price appreciation and rising corporate expenses. However, improving water heater & boiler volumes are expected to somewhat counter the headwinds.
General Dynamics (GD) Dragged Down by Increasing Competition
The Zacks Analyst believes that General Dynamics' defense groups will likely experience top-line pressure from any further defense budget cut in the future. Increasing competition is also a concern.
DICK's Sporting's (DKS) Murky Q4 Projections Pose Concerns
The covering analyst thinks a drab fourth quarter view hints at a weaker-than-expected holiday season, posing concerns for investors. However, the company's solid growth efforts bode well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ZOETIS INC (ZTS): Free Stock Analysis Report CHINA PETRO&CHM (SNP): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report BROADCOM LTD (AVGO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research