Quantcast

The Zacks Analyst Blog Highlights: Home Depot, Merck, Raytheon, Eaton and Sun Life Financial


Shutterstock photo

For Immediate Release

Chicago, IL - May 17, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Home Depot HD , Merck MRK , Raytheon RTN , Eaton ETN and Sun Life Financial SLF .

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday's Analyst Blog:

Top Analyst Reports for Home Depot, Merck and Raytheon

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 Home Depot, Merck and Raytheon. 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 >>>

Home Depot 's shares have gained +20.5% over the last year, outperforming the Zacks Retail Building Products industry's +14.1% increase. The Zacks analyst thinks that this performance is attributable to its five-year long trend of beating earnings estimates, which continued in first-quarter fiscal 2018.

Further, both the top and bottom line improved year over year in the first quarter. Results gained from strength in core business as well as relentless focus on affording innovative products, boosting interconnected customer experience and driving productivity. Steady housing market recovery and strong customer demand also remain tailwinds.

Going into the fiscal second quarter, the company continues to witness strength in all lines of business in the first few weeks of May. Consequently, it provided an optimistic view for fiscal 2018. However, the top line lagged estimates mainly due to colder-than-normal weather that led to softness in the spring season categories, particularly garden. This softness also resulted in a decline in comparable transactions.

(You can  read the full research report on Home Depot here >>> ).

Shares of Merck have outperformed the Zacks Large Cap Pharmaceuticals industry year to date, gaining +5.2% versus a loss of -4.0%. Merck beat estimates for earnings while missing the same for sales in Q1.

The Zacks analyst thinks that new products like Keytruda, Lynparza, and Bridion should continue to contribute meaningfully to the top line in 2018. Keytruda sales are gaining momentum with approval for additional indications especially in the first-line lung cancer setting as it is the only anti-PD-1 approved in this setting. The Animal Health unit is also strong and remains a core growth driver for Merck.

Meanwhile, Merck will continue to focus on cost-cutting initiatives to drive the bottom line. However, generic competition for several drugs and pricing pressure will continue to be overhangs on the top line. Rising competitive pressure on the diabetes franchise and on products like Isentress (HIV), Zepatier (HCV) and Zostavax (vaccine) will remain headwinds in 2018.

(You can  read the full research report on Merck here >>> ).

Raytheon 's shares have risen around +14.5% over the last six months, outperforming the Zacks Defense Equipment industry, which has increased +10.7% over the same period. However, Raytheon kick started 2018 on a solid note. The company's first-quarter earnings and revenues comfortably surpassed expectations. 

The Zacks analyst thinks the company is one of the best-positioned large-cap defense players due to its non-platform centric focus. Due to its wide range of combat-proven defense products, the company continues to receive numerous orders from both Pentagon as well as foreign allies. Raytheon's Patriot missile-defense systems have seen a number of buyers in recent times including international customers from Europe as well as the Middle East.

However, factors like tough competition and political uncertainty continue to be major headwind for Raytheon. Moreover, the company is overvalued compared to its broader industry in terms of EV/EBITDA ratio.

(You can  read the full research report on Raytheon here >>> ).

Other noteworthy reports we are featuring today include Eaton and Sun Life Financial.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.


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

Merck & Co., Inc. (MRK): Free Stock Analysis Report

The Home Depot, Inc. (HD): Free Stock Analysis Report

Raytheon Company (RTN): Free Stock Analysis Report

Sun Life Financial Inc. (SLF): Free Stock Analysis Report

Eaton Corporation, PLC (ETN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: MRK , HD , RTN , SLF , ETN



More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research










Research Brokers before you trade

Want to trade FX?