Thursday, September 7, 2017
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), Thermo Fisher (TMO) and China Life Insurance (LFC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Comcast' shares have gained +11.8% over the last six months, outperforming the Zacks Cable Television industry which has gained +10.7% over the same period. Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand and is venturing into residential solar programs with a 40-month deal with Sunrun.
Further, the company is working towards 5G network deployment and continues to roll out its DOCSIS 3.1-based internet services to Comcast Business customers. Comcast has also forayed into the over-the-top video delivery market with the launch of its Internet TV service - Stream. Through these initiatives, Comcast aims to check customer churn and provide viewers with more streaming options.
However, tough competition, consolidation-related woes, mounting programming costs and loss of customer base act as near-term risks for Comcast. Competitive threat from online streaming service providers remains a concern.
Shares of Buy-rated Thermo Fisher have outperformed the Zacks Medical sector (up more than +26.2% over the last one year vs +5.3%). The Zacks analyst is upbeat about the company gaining entry into the CDMO market through the recent acquistion of Patheon for $7.2 billion. A series of product launches along with major progress in precision medicine initiatives is also encouraging.
Thermo Fisher's acquisition of FEI Company has already started to boost its analytical instruments portfolio. The company also opened Center of Excellence for electron microscopy in Saudi Arabia. The raised 2017 guidance is all the more encouraging indicating the fact that this overall bullish trend will continue through the year.
China Life Insurance 's shares have outperformed the Zacks Life Insurance industry year to date, gaining +21.8% vs. +15.8%. The Zacks analyst likes the company's robust market position and organic growth initiatives. Its operational efficiency is also reflected by its product upgrades and premium growth over the last many quarters. China Life's solid investment management also continues to impress.
The company has the most extensive distribution and service network among all insurance companies operating in China. However, it suffers from rising expenses that have been pushing the bottom line down over last few quarters. Its severe exposure to market risk is another concern. (You can read the full research report on China Life Insurance here >>> ) .
Other noteworthy reports we are featuring today include Deere (DE), DISH (DISH) and American Airlines (AAL).
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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 Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
The Zacks analyst believes that stable cash flow from multi-billion-dollar worth of natural gas and oil transportation project backlog will help Enbridge combat its escalating long-term debt load.
While the covering analyst likes Concho Resources' large acreage position in the prolific Permian Basin, service cost inflation and lack of geographical diversification limits upside.
Per the Zacks analyst, DISH Network should benefit from its extensive portfolio of wireless spectrum and Internet TV service - Sling TV, while it continues to lose subscribers due to cord-cutting.
The Zacks analyst likes the company's efforts to upgrade its fleet. Efforts to reward shareholders also raise optimism in the stock.
The Zacks analyst lauds Deere's plans to buy Wirtgen to grow in construction and Blue River Technology to add intelligence to products.
The Zacks analyst believes that AES Corp.'s continuous efforts to expand its renewable assets could drive growth going forward.
Per the Zacks analyst, Lululemon is keen on enhancing e-Commerce retailing channel and investing in product innovations.
The Zacks analyst stresses that RH's shift from a promotional to a membership business model has enhanced customer experience, increased brand value, improved operational execution and reduced costs.
Per the Zacks analyst, TransUnion is poised for imposing growth with an attractive business model, significant operating leverage, products that shun data theft risks and strong and stable cash flows.
Per the Zacks analyst, improving premiums, on the back of sustained operational performance, will continue to boost American Financial's earnings, thereby resulting in overall growth.
Weakness in the drone market, declining revenue contribution from its biggest customer, GoPro, and increasing threat from QUALCOMM dampen Ambarella's growth prospects, per the Zacks analyst.
Per Zacks analyst, Deutsche Bank's revenues continue to remain under pressure due to the prevailing low rate environment in the European economy. Also, pending legal matters will keep costs elevated.
Per the Zacks analyst, heightened commodity pricing along with competitive pricing and execution issues will continue to negatively impact Hewlett Packard's overall performance in the near term.
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