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Top Research Reports for Comcast, ConocoPhillips & Delta Air Lines

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Wednesday, October 31, 2018

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 Comcast (CMCSA), ConocoPhillips (COP) and Delta Air Lines (DAL). 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-ranked Comcast 's shares have outperformed the Zacks Cable Television industry year to date, losing -5.8% vs. -11.4% in the space. Comcast's third-quarter 2018 results benefited from solid growth in the number of residential high-speed Internet customers.

Advertising revenues also increased due to higher spending on political advertising. Moreover, strong adoption of Xfinity Home drove top-line growth. The Zacks analyst thinks the nationwide rollout of the DOCSIS 3.1 technology and the completion of the nationwide rollout of Comcast's wireless services under the Xfinity Mobile brand will continue to boost subscriber base. Partnerships with the likes of Charter, Netflix and Amazon Prime are other positives.

The Sky acquisition expands Comcast's international reach. Sky's content portfolio strength is a major growth driver. However, the company continues to lose voice and video subscribers due to cord-cutting and stiff competition. Additionally, high debt level is a headwind.

(You can read the full research report on Comcast here >>> ).

Shares of Buy-ranked ConocoPhillips are up +33.5% over the past year, outperforming the Zacks U.S. Integrated Oil industry, which has gained +13.7% over the same period. In terms of production and proved reserves, ConocoPhillips is the largest oil and gas exploration and production (E&P) player in the world.

The company recently reported strong third-quarter 2018 results, courtesy of higher oil realizations and strong volumes from unconventional assets. The Zacks analyst thinks there are significant opportunities for the upstream energy player in the Eagle Ford where it owns about 3,400 undrilled locations. In fact, a strong focus on two other prospective resources like Delaware basin and Bakken shale is expected to help ConocoPhillips achieve its target of 22% CAGR of production through 2017 to 2020.

Importantly, through 2017, the firm had lowered its debt load by 30%, thereby enhancing its credit rating. Consequently, ConocoPhillips offers substantial upside potential from the current price levels and is a preferred E&P company to own now.

(You can read the full research report on ConocoPhillips here >>> ).

Delta Air Lines ' shares have lost -1.5% year to date, outperforming the Zacks Airline industry's -21.8% decline. The stock has also outperformed fellow airline heavyweight, American Airlines, which has declined -33.4% in the same time frame. Delta performed impressively in the third quarter of 2018, despite high fuel costs. Both earnings and revenues surpassed the respective estimates and improved year over year.

Strong demand for air travel aided results, causing passenger revenues to i ncrease 8.2%. Anticipating travel demand to remain strong, Delta raised its view pertaining to revenue growth for 2018. The Zacks analyst is also impressed by the company's efforts to reward its shareholders.

Despite the robust third-quarter performance, the threat posed by rising fuel costs, which increased 32.1% in the third quarter, is a major concern. Also, its fuel bill rose 35% in the quarter. Fuel costs are anticipated to be between $2.47 and $2.52 per gallon in the final quarter of 2018. Expenses on the labor front might also limit bottom-line growth.

(You can read the full research report on Delta Air Lines here >>> ).

Other noteworthy reports we are featuring today include ServiceNow (NOW), Xcel Energy (XEL) and Zimmer Biomet (ZBH).

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Mark Vickery

Senior Editor

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 Trendsand Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)

ConocoPhillips (COP) Gains From Oil-Rich Eagle Ford Acreage

Passenger Revenues Buoy Delta (DAL) Amid Fuel Cost Woes

Featured Reports

Growing Customer Base & Partnerships Aid ServiceNow (NOW)

Per the Zacks analyst, ServiceNow benefits from expanding Global 2000 (G2K) customer base undergoing digital transformation. Further, strategic alliances with the likes of Microsoft are a tailwind.

Steady Investments to Boost Xcel Energy's (XEL) Operation

Per the Zacks analyst long-term investment plans and improving economic conditions in service territories will strengthen Xcel Energy's existing operations.

Solid S.E.T Arm Aids Zimmer Biomet (ZBH) Amid Forex Woes

Per Zacks analyst, with focus on quality remediation, product launches and supply recovery efforts, Zimmer Biomet sees growth within S.E.T arm. Adverse currency movements continue to dent revenues.

Investments Aids DTE Energy (DTE), Stringent Regulations Hurt

Per the Zacks Analyst, strategic investments in infrastructure projects will drive DTE Energy's future performance.

Security Subscriptions, Partnerships Aid Check Point (CHKP)

Per the Zacks analyst, Check Point is benefiting from strong growth in security subscriptions.

VeriSign (VRSN) Rides on Higher Domain Name Registrations

The Zacks analyst is encouraged by the increase in domain name base, renewal of the .com contract and price hikes for the .com and .net domain names.

Loans, Fee Income Aid SVB Financial (SIVB), High Costs A Woe

Per the Zacks analyst, loan growth, rise in interest rates, focus on non-interest income and global expansion aid SVB Financial.

New Upgrades

Omnicell's (OMCL) XT Uptake Drives Growth, New Alliances Aid

The Zacks analyst is impressed with the strong uptake of Omnicell's XT series which is helping it to gain good momentum in automation and analytics business. New strategic deals should drive growth.

Superior Products & Cost Cut Efforts Drive Cooper Tire (CTB)

Per the Zacks analyst, the strategy to develop products with superior design and alignment of production to demand, is aiding Cooper Tire. Also, its plans to curb manufacturing costs are helping it.

Rising Consumer Loans Aid Credit Acceptance (CACC) Top Line

Per the Zacks analyst, the increase in finance charges, driven by continued growth in consumer loans are expected to continue supporting Credit Acceptance's revenues.

New Downgrades

High Operating Costs Hurt Altra Industrial Motion (AIMC)

Per the Zacks analyst, Altra Industrial Motion is struggling with poor performance of Electromagnetic Clutches & Brakes business. Also, constrained margins and high operating costs concerns remain.

Western Digital (WDC) Hurt by Pricing Pressure & Competition

Per the Zacks analyst, sluggishness in client compute hard drives, slower-than-expected trends in flash market pricing and stiff competition are key negatives.

Soft Licensed Software Unit Likely to Hurt Cerner (CERN)

Cerner saw lackluster performance in its Licensed Software unit. The Zacks analyst is also pessimistic about decline in the company's Subscription revenues.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Zimmer Biomet Holdings, Inc. (ZBH): Free Stock Analysis Report

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

ServiceNow, Inc. (NOW): Free Stock Analysis Report

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

ConocoPhillips (COP): Free Stock Analysis Report

Comcast Corporation (CMCSA): Free Stock Analysis Report

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Zacks Investment Research

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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