Tuesday, December 13, 2016
Today's Research Daily features new research reports on 16 major stocks, including Barclays (BCS), Netflix (NFLX) and NIKE (NKE).
Barclays ' shares significantly outperformed the Zacks categorized Foreign Bank sector over the past three months, surging 28.2% versus the sector's gain of 12.5%. The analyst thinks that this Zacks Rank #1 (Strong Buy) bank is on track to achieve targeted cost savings this year, driven by continued divestiture of non-core operations world-wide.
These are expected to improve operational efficiency and lower expenses, thereby leading to improved profitability over time. Further, Moody's long term ratings upgrade enhances investors' confidence in the stock. (You can read the full research report on Barclays here. )
Netflix 's shares outperformed the Zacks categorized Broadcast Radio/TV sector over the year-to-date frame, jumping 7.4% versus the sector's gain of 0.7%. The analyst likes its growing portfolio of original content with special emphasis on kids and family content, which is expected to boost the company's growth in the near future.
Moreover, it remains focused on international expansion as it battles slowing domestic subscriber growth to solidify presence in its operating markets. However, investments in original/acquired content remain a drag on profitability at present. In addition, stiffening competition from peers can pose some challenges. (You can read the full research report on Netflix here. )
NIKE 's shares have plunged 17.5% year-to-date, underperforming the Zacks Shoes & Retail Apparel sector which has lost 13.4% over the same period. Growing competition in the space from Under Armour and Adidas remained one of the major causes for the underperformance. Also, inventory position depicted softness in Nike's merchandise sales in the preceding quarter, posing concerns.
However, the analyst likes the company's confidence on its growth drivers like efficient supply chain, a great sync between digital and physical worlds, constant innovations and strategic investments. Also, Nike's positive surprise history reveals that it has been gaining from its customer-centric approach, innovative products and strong portfolio. (You can read the full research report on NIKE here. )
Other noteworthy reports we are featuring today include Chubb (CB), Biogen (BIIB) and China Petroleum & Chemical (SNP).
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Today's Must Read
The Zacks analyst thinks that Sinopec's decision to divest 50% of its stake in the Sichuan-East China gas pipeline project will boost the company's fundamentals.
American Eagle's third-quarter fiscal 2016 top and bottom line met our estimates and improved year-over-year.
The Zacks analyst believes that the Seventy Seven Energy acquisition will transform Patterson-UTI into a land drilling powerhouse with exposure to the prolific basins in the U.S.
According to the covering analyst, Navient will benefit from leveraging its asset recovery & processing businesses. However, rising costs amid regulatory issues remain a key concern.
The Zacks Analyst believes that MGIC Investment will remain committed toward improving its insurance in force, while enhancing shareholders' value.
According to the covering analyst the acquisitions of Arbor and Circulate will improve Acxiom's competitive position in the field of marketing services and technology market going ahead.
The Zacks analyst believes that Liberty Media's diversified investments in cable MSOs, satellite radio broadcasters and live concert operators will boost the company's long-term growth prospect.
The Zacks analyst thinks that Biogen's strong position in the multiple sclerosis market, its focus on diversifying its pipeline, cost cuts and MS franchise sales will drive profits in the near term.
The covering analyst believes that Chubb's robust capital position will enable it to engage in shareholder-friendly moves and also invest in strategic initiatives to drive growth.
The Zacks analyst thinks that KLA's comprehensive product line and the increasing process control spending across foundry, memory and logic players offer higher growth potential.
The covering analyst stresses that concerns related to the separation of the China division, slowdown in some of the emerging markets and forex headwinds has been marring the company's prospects.
The Zacks Analyst thinks that the recent downward pressure on Invesco's AUM may hurt its profitability in the near term. Elevated expenses and impact of regulatory restrictions are added concerns.
The covering analyst believes that currency remains a drag on PPG's top line. The company is also exposed to macroeconomic challenges and weakness across certain end-use markets.
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