Tuesday, December 27 2016
Today's Research Daily features new research reports on 17 major stocks, including Visa (V), Reynolds (RAI), General Motors (GM) and Abbott (ABT).
Visa shares have gained 0.8% year to date, underperforming the Zacks Financial Transaction Services sector which has gained 5.6% over the same period, reflecting concerns about high client incentives, the stronger U.S. dollar, and global economic uncertainty. These issues notwithstanding, the Zacks analyst likes Visa's strategic acquisitions and alliances, technology upgrades and effective marketing efforts. The company has reaffirmed that the acquisition of Visa Europe will be accretive in 2017. In addition, the company's efforts to enhance shareholder value are impressive. (You can read the full research report on Visa here. )
Buy rated Reynolds shares have gained 21.4% year to date, outperforming the Zacks Tobacco industry. Estimates have more or less remained unchanged for Reynolds over the past 30 days. Cigarette and moist snuff pricing coupled with strong performance across both smokeable and smokeless categories continue to help the company maintain its market share. Further, investors are curious if British American will bid higher to buy Reynolds American's remaining stake, after the rejection of initial bid (You can read the full research report on Reynolds here. )
General Motors shares have gained 4.9% year to date, outperforming the Zacks Domestic Auto Manufacturers sector which has gained 2.9% over the same period. Most of the company's estimates have increased over the last sixty days. The analyst stresses that it has a positive record of earnings surprises in recent quarters. The automaker is increasing capacity investment in emerging markets to enhance its global sales. It is also focused on investment in innovative technologies and vehicles for sustained growth. However, series of recalls, scaling down or shutting manufacturing operations in some regions and challenging South American market are headwinds for the company. (You can read the full research report on General Motors here. )
Abbott shares have lost 14.5% year to date, underperforming the beleaguered Zacks Large-Cap Pharma sector which has lost 5.6% over the same period. However, the analyst likes how Abbott has been reshaping its portfolio through strategic acquisitions/divestitures for long-term growth. The St. Jude Medical buyout will complement its cardiovascular devices business. The company recently filed a complaint to terminate its proposed acquisition of Alere, based on a substantial deterioration in the latter's value following the merger agreement. Meanwhile, weakness in the nutrition business in China and sluggish growth in the Venezuelan market is concerning. (You can read the full research report on Abbott here. )
Other noteworthy reports we are featuring today include General Dynamics (GD), Coca-Cola (KO) and American Express (AXP).
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Today's Must Read
The Zacks analyst believes that Priceline's appointment of new CEO, strength in international markets, growth opportunities in the domestic market and strong financial position are positives.
Per the Zacks analyst, American Express' efforts to technologically upgrade payment system and higher late fee will lead to revenue growth. Yet, loss of major client and higher provisions are concerns
The completion of the merger has expanded Alaska Air's presence significantly, particularly in the West Coast. Though positive on the deal, the Zacks analyst is cautious about the integration risks.
Autoliv' planned joint venture with Volvo should boost earnings in the long run. Apart from acquisitions and JVs, it also boosts shareholder value through capital deployment and product launches.
The Zacks analyst believes that the STRAN acquisition will help Corning to extend its presence in the military, aerospace, oil and gas markets.
The covering analyst thinks KeyCorp remains poised for organic growth, driven by a rise in loans and deposit balances.
The covering analyst believes Dominion Resources remains poised to gain from its organic and inorganic growth strategies.
The Zacks analyst believes that the company's diverse customer base and an attractive product mix will help maintain a steady growth momentum and drive results in the quarters ahead.
The covering analyst thinks EA's strong digital business and popular game franchises will continue to boost revenues going ahead. However hit driven nature of video game industry begets caution.
The Zacks analyst thinks TD Ameritrade 's efforts to grow through acquisitions will lead to enhanced profitability. Further, improved clients trades are expected to enhance trading revenue.
The Zacks analyst thinks lackluster prospects of the healthcare markets in the near-term as well as higher restructuring expenses and rising taxes have thwarted Philips' growth significantly.
Negative currency impact is a major concern for Coca-Cola. Per the Zacks Analyst, weak demand in emerging and developing markets and shift in consumer tastes could weigh on the company's performance.
Owing to a highly volatile environment and sluggish growth across the globe, General Electric recorded lower 3Q Industrial segment profit and lowered its organic revenue growth guidance for 2016.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.