Thursday, August 4, 2016
Today's must-read reports are for Shire (SHPG), Colgate-Palmolive Co. (CL) and CME Group Inc. (CME).
Shire shares have moved up following the quarterly report, with the specialty pharmaceutical operator beating top- and bottom-line estimates guiding higher following the Baxalta acquisition. The analyst likes the company's strong position in the attention deficit hyperactivity disorder (ADHD) market coupled with its recent acquisitions, which is expected to bolster its rare disease portfolio. (You can read the full research report on SHPG here >> )
Zacks Rank # 2 (Buy) rated Colgate Palmolive shares are up more than 12% year-to-date, with the company's improved earnings picture following the quartelry release helping sustain the favorable momentum. The analyst likes the fact that Colgate expects another year of robust organic sales growth on the back of new products across categories and geographical regions, which encouraged it to retain its 2016 outlook. (You can read the full research report on CL here >> )
CME Group is a Zacks Rank # 2 (Buy) rated stock and has gained nearly 14% year-to-date on the back of efforts to expand and cross-sell through strategic alliances, acquisitions, new product initiatives and global presence. In the second quarter, the company witnessed solid revenue growth as well as cost-control induced margin expansion. Notably, CME Group registered a year-over-year increase of 10% in average daily volume for Jul 2016. (You can r ead the full research report on CME here>> )
Other notable reports in today's write-up include Aflac (AFL), Fiserv (FISV) and CBS Corporation (CBS).
You can find all of today's stock research reports here>>> .
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Today's Must Read
A low interest rate in Japan poses headwinds, according to the Zacks analyst.
The covering analyst thinks that despite strong competition in the payments industry, Fiserv has been seeing strength with offerings like Mobiliti ASP and DNA.
Xerox is splitting its BPO business from Document Technology and Document Outsourcing businesses to focus on revenue growth and margin expansion.
International Flavors & Fragrances is committed to reward its shareholders handsomely through dividends and share buybacks.
The Zacks analyst believes domestic economic growth should continue to spur loan demand, which will support Zions' revenue improvement.
Genworth is intensifying its focus on improving its mortgage insurance and long-term care businesses, streamline business as well as enhance financial flexibility and strength.
The Zacks Analyst feels that D&B's high-margin business model, sale of underperforming operations and acquisitions are positives but competition, weak DNBi business and high debt pose serious threats.
The covering analyst believes that increasing subscription-based revenues and higher political advertising spending are likely to boost CBS Corporation's performance in the coming quarters.
The Zacks analyst thinks higher revenues and portfolio operations aided Q2 results. Its presence in high-rent markets and healthy labor market, are likely to drive it growth further.
According to the Zacks analyst, IDEXX's solid earnings in Q2 is backed by robust instrument placement, global lab momentum and test menu expansion. The raised 2016 guidance 2016 also buoys optimism.
Genomic Health's Q2 loss came in line with the Zacks Estimate, but margins dropped. The Zacks analyst stresses that the sales beat was driven by strong test revenue growth across geographies.
The covering analyst thinks the weak price environment has reduced Hess' ability to generate cash flow. Also, it continues to be dependent on major asset sales to support its capital expenditures
Like many other U.S. food producers, General Mills has been struggling due to the shift in consumer preference towards natural and organic food according to the Zacks analyst.