Monday June 19 2017
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 Chevron (CVX), Pfizer (PFE) and Boeing (BA). 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 >>>
Chevron has handily outperformed the Zacks Integrated Oil Industry over the past year (up +5.4% vs. +0.3%), as well as larger rival ExxonMobil which saw its stock go down -8.7% over the same time period. Chevron's gains reflect the momentum generated by better-than-expected earnings in 3 of the last 4 quarters on the back of rebounding commodity prices, lower expenses and improved U.S. refining environment.
Moreover, Chevron's focus on the prolific Permian basin should allay investor fears about production growth trajectory over the next few years. However, with oil testing the psychologically-critical $50 threshold again, the near-to-medium term revenue outlook for Chevron - one of the most oil-weighted majors - remains cloudy.
Chevron is still outspending its cash flow, making it dependent on asset sales. Hence, the Zacks analyst thinks investors should wait for a better entry point before buying shares in America's second largest oil company.
(You can read the full research report on Chevron here >>> ) .
Shares of Pfizer have underperformed the peer group as well as the broader market over the past year (the stock is down -4.3% over the last year vs. a +5.5% increase for the Zacks Large-Cap Pharma industry and the +16.8% gain for the S&P 500 index) on continued drug pricing uncertainty that have refused to go away even after the election. These headwinds notwithstanding, the Zacks analyst is pointing out that Pfizer is strengthening its product portfolio as well as pipeline through acquisitions and licensing deals.
Also, cost-savings and share buybacks should help Pfizer achieve its earnings guidance. New products like Ibrance and contribution from acquisitions are expected to drive revenues. While the Hospira acquisition has significantly expanded Pfizer's sterile injectable and biosimilar capabilities, the Medivation deal has strengthened its cancer franchise by adding Xtandi to its portfolio.
(You can read the full research report on Pfizer here >>> ) .
Boeing 's shares have surged +49.5% over the past one-year, outperforming the Zacks Aerospace & Defense sector, which gained +26.8% during the same time period. The Zacks analyst stresses that rising demand for its commercial airplanes on the back of steady improvement in passenger and freight traffic is the major factor behind the surge in Boeing shares.
These developments reflect the company's latest expansion on the international front, apart from its strong presence in the domestic aviation market. The improving outlook for defense spending under the Trump administration is another long-term positive in the Boeing story.
However, challenges including uncertain fate of high-cost programs, risks related to key project executions, order cancellations as well as stiff competition might have a negative impact on the company. Also deferred production cost for Boeing's 787 Dreamliner remains a major cause of concern for the company.
(You can read the full research report on Boeing here >>> ) .
Other noteworthy reports we are featuring today include Comcast (CMSA), 3M (MMM) and Citigroup (C).
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Today's Must Read
Chevron (CVX) Banks on Permian Assets Amid Cash Flow Worries
Pfizer's (PFE) New Drugs Like Ibrance to Counter Generic Woes
Huge Defense Deals Aid Boeing (BA), 747 Demand Remains Weak
Mobile Venture, Video Subscriber Gains Boost Comcast (CMCSA)
Per the Zacks analyst, video subscriber gain is a major positive for Comcast. The joint mobile venture with Charter Communications will boost its wireless services businesses.
High Demand for Unmanned Aircraft, ISR Focus Lifts Northrop (NOC)
Per the Zacks analyst, higher demand for unmanned aircraft like Triton boosted the growth of Northrop Grumman. Its focus on strengthening its ISR wing also added to investors' optimism.
IMAX (IMAX) Eyes Cost Cuts Due to Soft box-office revenues
To counter top line woes, IMAX is looking to drive growth by cutting costs. The covering analyst likes the new buyback scheme aimed at boosting investor confidence.
Nike (NKE) to Gain from Consumer Direct Offense Strategy
Per the covering analyst, Nike is likely to benefit from its Consumer Direct Offense plan that is aimed at using digital means and speeding up innovations.
Texas Instruments (TXN) Benefits From Strong Auto Growth
The Zacks analyst believes that strong demand in auto and industrial markets and solid execution are positives for Texas Instruments. However, increasing competition in auto remains a concern.
Adobe (ADBE) Rides on Creative Cloud Business
The covering analyst believes Adobe's Creative Cloud software tools like Photoshop will continue add subscribers, significantly driving the company's growth.
Genomic (GHDX) Grows on Cancer Scores, Operating Expenses Rise
The Zacks analyst is bullish on Genomic Health's persistent growth in breast and prostate cancer scores on several recent favorable results.
Apogee (APOG) Well Poised on Sotawall & EFCO Acquisitions
The Zacks analyst appreciates Apogee's focused acquisition strategy evident from Sotawall and EFCO acquisitions. These buys will expand products offering, geographic reach and boost margins.
3M (MMM) Aims to Benefit from New ERP System
The covering analyst thinks 3M's global ERP system is likely to save $500-$700 million annually by 2020. The company raised its guidance for 2017 on healthy growth dynamics and core business focus.
Progressive's (PGR) Wide Product Suite Fuels Premium Growth
Per the Zacks analyst Progressive gains from its compelling product, service & distribution innovation, especially in personal auto. Its competitive rates in all its markets will fuel premium growth.
Weak Dental Business, Diagnostics to Pull Back Danaher (DHR)
Per the Zacks analyst, weakness in the consumables business will hurt Danaher's Dental segment. Its Diagnostics unit is also grappling with currency issues and softness in Beckman Coulter unit.
Legal Issues Related to Past Deeds Persist for Citigroup (C)
Per the covering analyst, though Citigroup is working hard on restructuring activities to focus on core operations aiding top-line growth, litigation burden related to past misconduct persists.
General Mills (GIS) Sales Hit Hard by Organic Food Trend
Sales at General Mills' North America Retail segment, contributing 66% to its sales, have been soft because of the shift in consumer preference toward natural and organic food, per the Zacks analyst.
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 reportPfizer, Inc. (PFE): Free Stock Analysis Report3M Company (MMM): Free Stock Analysis ReportChevron Corporation (CVX): Free Stock Analysis ReportComcast Corporation (CMCSA): Free Stock Analysis ReportCitigroup Inc. (C): Free Stock Analysis ReportBoeing Company (The) (BA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research