Top Analyst Reports for Pepsi, TJX Companies & Charter Communications

Friday, February 17 2017

Today's Research Daily features new research reports on 16 major stocks, including Pepsi (PEP), Charter Communications (CHTR) and TJX Companies (TJX). These reports have been hand-picked from amongst the 70 or so stock research reports published by our analyst team today. You can see all of today's research reports here >>

Pepsi shares modestly lagged the broader market over the last three months (+6.5% for PEP vs. +7.4% for the S&P 500), but they outperformed the Zacks Soft Drinks Beverages industry as well as Coke (KO was +0.5%). PepsiCo reported mixed fourth-quarter results, with earnings beating expectations and revenues falling short. The food/beverage giant's overall solid performance across its three N. America divisions helped offset softness in Latin America. This is also evident from its muted 2017 guidance. However, the Zacks analyst thinks Pepsi's new product lineup, aggressive marketing efforts, productivity improvement and cost-saving initiatives should drive profits and help it to address global macro uncertainty. (You can read the full research report onPepsihere >> )

Charter Communications outperformed the Zacks Cable TV industry over the past three months (+22.9% vs. +13.6%), with the company's strong financial results in the fourth-quarter helping the momentum. The Zacks analyst is particularly optimistic about the company's merger with Time Warner Cable and Bright House Networks, which have strengthened its foothold in hybrid fiber coax (HFC) and fiber networks. The merger is expected to allow Charter to offer enhanced services and more streaming video product options to its customers. Charter has also announced that it will venture into the U.S. wireless market. However, online videos provide an extremely cheap source of TV programming and are gaining momentum, threatening the pay TV model. (You can read the full research report on Charter Communications here >> )

TJX Companies is scheduled to report Q4 results on February 22nd, with the retailer expected to report $1 in EPS on $9.47 billion in revenues. The company has been striving to boost sales via aggressive store expansion and upgradation of the e-Commerce business. Further, TJX is increasing its global presence with the takeover of Sierra Trade Post in Australia. However, the company faces margin pressure due to potential higher payroll and pension related costs. The stock has not done that well lately, but positive comps next week will likely push the stock higher (You can read the full research report on TJX Companies here >> )

Other noteworthy reports we are featuring today include Xcel Energy (XEL), Valero (VLO) and Delta Air Lines (DAL).

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Sheraz Mian

Director of Research

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

Pepsi (PEP) Tops Earnings, Strategic Initiatives Bode Well

Charter Communications (CHTR) Tops Q4 Earnings & Revenues

TJX Companies (TJX) Higher Wages Likely to Hurt Q4 Margins

Featured Reports

Xcel Energy (XEL) Beats on Q4 Earnings, Revenues Miss

The Zacks analyst believes Xcel Energy's long-term investment plans will strengthen its operations and help it to serve its expanding customer base in a more reliable and efficient manner.

Valero (VLO) Beats Q4 Earnings Estimates, Fall Y/Y

The covering analyst believes that improved domestic refined product demand led Valero to post better-than-expected Q4 earnings. However, the bottom line deteriorated year over year.

Delta (DAL) pays more than $1 billion in profit-sharing

The Zacks analyst is pleased with the company's employee-friendly approach. Its efforts to reward shareholders are also encouraging. However, headwinds like technological glitches remain concerns.

Barrick (ABX) Tops in Q4, Focus Remains on Debt & Cost Cuts

The covering analyst thinks Barrick will gain from efforts to reduce debt & costs and digitalize its mines amid a volatile gold pricing environment.

PACCAR (PCAR) Misses in Q4, Expects Lower Sales in 2017

The Zacks analyst believes that while the company may benefit from growing market share and investments, lower sales ahead may prove to be a headwind.

Regions (RF) Q4 Results Depict Improving Profitabiity

The covering analyst thinks Regions' efforts towards expense management are expected to aid bottom-line expansion further.

Archer Daniels (ADM) Q4 Earnings Rise Y/Y, Miss Estimates

The Zacks analyst thinks Archer Daniels' fourth quarter was driven by better operating conditions. Also, the company is ahead of track with cost savings.

New Upgrades

Applied Materials (AMAT) Beats Q1 Earnings; Lags Revenues

With Applied Materials delivering strong Q1 results, the Zacks analyst believes that its differentiated products, new technologies and innovation strategy will continue to be the main growth drivers.

Pool (POOL) Tops Q4 Earnings; Long-term Prospects Bright

The covering analyst thinks strong base business sales led to Pool's robust Q4 results. A positive consumer discretionary spending environment and market share gains spell even better business ahead.

FormFactor (FORM) Beats Q4 Earnings & Revenue Estimates

The Zacks analyst believes that FormFactor's fourth quarter 2016 earnings were driven by contribution from the acquisition of Cascade Microtech and growth in the core business segments.

New Downgrades

Dillard's (DDS) Looks Troubled by Challenging Retail Trends

The Zacks analyst thinks Dillard's has been hurt by a tough retail scenario, owing to slow traffic due to consumers??? shift toward online shopping. Also, cost pressures for fiscal 2016 remain concerns.

Capella Education's (CPLA) Q4 Earnings and Margins Decline

Capella's Q4 earnings and operating margin declined 7.6% and 260 bps, respectively. Per the Zacks analyst, improving employment scenario and decline in new enrollment is likely to hurt growth prospect

Nordstrom (JWN) Continues to Fight Apparel Industry Hurdles

The Zacks analyst thinks Nordstrom's presence in the retail - apparel industry keeps it exposed to volatile consumer behavior and ever changing fashion trends. Stiff competition also poses threats.

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Xcel Energy Inc. (XEL): Free Stock Analysis Report

Valero Energy Corporation (VLO): Free Stock Analysis Report

TJX Companies, Inc. (The) (TJX): Free Stock Analysis Report

Pepsico, Inc. (PEP): Free Stock Analysis Report

Delta Air Lines, Inc. (DAL): Free Stock Analysis Report

Charter Communications, Inc. (CHTR): Free Stock Analysis Report

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

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

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