Wednesday June 7 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 Broadcom (AVGO), TOTAL S.A. (TOT) and UnitedHealth (UNH).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 >>>
Buy-rated Broadcom 's shares have handily beaten the technology sector as well as the red-hot semiconductor space in the year-to-date period, gaining +43.6%. The Zacks analyst likes the synergistic benefits gained from the merger with Avago, which will drive future profitability. Seasonal strength in broadband access and sustained cloud data center spending is expected to drive top-line growth in the rest of fiscal 2017.
The company's divestiture of some of Brocade's assets to ARRIS International will accelerate the acquisition process and also lower leverage. However, customer concentration is a significant headwind. (You can read the full research report on Broadcom here >>> ) .
Shares of TOTAL S.A. have outperformed the Zacks categorized Oil & Gas International Integrated industry over the last year (up +4.9% vs. -1.0%). The Zacks analyst likes the company's commitment to cost savings initiatives amid ongoing volatility of crude oil prices . After savings of $2.8 billion in 2016, TOTAL aims to save $3.5 billion in costs this year. Furthermore, it expects to improve its top-line production by 4% in 2017, owing to new projects that have started operation this year.
Going forward, the company will continue to benefit from upstream startups, while the strategic acquisitions and asset divestitures will further strengthen portfolio. However, fluctuating commodity prices, operations in some politically troubled regions and increasing competition could impact the company's profitability. (You can read the full research report on TOTAL S.A. here >>> ) .
UnitedHealth 's continued strong growth at Optum as well as UnitedHealthcare segments are driving growth. The buy rated stock's international business and strong capital position are other positives. Moreover, the company has reduced its exposure to the troubled public exchange business.
Though this move will shield it from losses in this business, the company's premium revenues are likely to be affected. UnitedHealth shares have underperformed the Zacks Medical-HMOs industry in the year-to-date period (up +13.8% vs. +17.3%). (You can read the full research report on UnitedHealth here >>> ) .
Other noteworthy reports we are featuring today include Nike (NKE), TE Connectivity (TEL) and Ingersoll Rand (IR).
Zacks' 2017 IPO Watch List
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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 Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
As a development-stage company, Puma lacks an approved product in its portfolio yet. The Zacks analyst stresses that an approval for neratinib would be a huge boost given immense commercial potential.
The covering analyst believes that attractive resource potential and extensive drilling plans are likely to drive natural gas production. However, sole exposure to Appalachian Basin poses risks.
Per the Zacks analyst, Capital One's revenue should continue improving, given the strength in its credit card and online banking operations.
Though positive on JetBlue's view on unit revenues for Q2 and Q3, the Zacks analyst expects high costs to hurt the company's near-term earnings.
Per the covering analyst, BorgWarner is set to grow on new businesses and acquisitions. Capital deployment, restructuring, a healthy balance sheet and ample cash flows are also expected to benefit.
The Zacks analyst thinks $190 million investment plan and higher sales for brands like Skippy will boost Hormel's near-term results. However, weaker Jennie-O Turkey Store business might limit growth.
Per the Zacks analyst, Ingersoll is focused on improving the efficiencies within its core businesses.
Solid booking trends are likely to lead to revenue growth at Royal Caribbean in 2017, per the Zacks analyst. Its Double-Double program is helping to control costs and improve revenue yields.
Per the covering analyst, TE Connectivity's margins will benefit from steady market traction of harsh environment applications. Also, its overarching TEOA operating system is likely to control costs.
The Zacks analyst is bullish about Edwards Lifesciences' win of FDA approval for SAPIEN 3 valve which defines the company's hope to gain space in high-potential THV market. Strong pipeline adds value.
Spectrum's product sales have been declining over last few quarters on stiff competition. Moreover, generic pressures may impact the drug's commercial potential in future, believes the Zacks analyst.
The covering analyst expresses concern over the footwear major's declining future orders. While it projects solid sales growth internationally, it remains cautious on projections for North America.
Per the Zacks analyst, Ensign Group's solid growth potential is adversely affected by its rising expenses, heavy debt burden and stringent regulations faced by both the U.S and non-U.S operations
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