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Top Research Reports for CVS Health, General Motors & Enterprise Products

Tuesday, November 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 CVS Health (CVS), General Motors (GM) and Enterprise Products (EPD). 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 >>>

CVS Health 's shares have outperformed the Zacks Drug Stores industry over the last six months losing -17.6% vs. a decline of -21.1%. CVS Health exited the third quarter on a solid note with both earnings and revenues remaining ahead of the expectations.

Slower revenue performance on poor Retail/LTC numbers as well as margin debacle resulted in such a dull bottom line performance by the company in the quarter. Nonetheless, year-over-year growth in the top line was due to strong Pharmacy Services segment that benefited from the upside in the Specialty Pharmacy.

The Zacks analyst is encouraged to note that, despite a soft bottom-line scenario, the company reiterated its earnings outlook for 2017 indicating chances of recovery ahead. The company's on-going strong 2018 PBM selling season is another upside. Moreover, the Omnicare and Target Pharmacy buyouts are gradually driving enterprise value at CVS Health.

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

Shares of General Motors have outperformed the Zacks Domestic Automotive industry over the last six months, increasing +24% vs. +9%. General Motors delivered better-than-expected adjusted earnings per share in third-quarter 2017. Revenues also surpassed expectations.

In the United States, in October, the automaker reported 252,813 deliveries. During the month, pickup deliveries rose 9% year over year and crossover deliveries rose 12% year over year. The company aims to focus more on the development of electric vehicles and plans to roll out 20 electric or hydrogen fuel cell vehicles by 2023.

It is also emphasizing to strengthen its brands, increasing retail sales and maintaining operating discipline. However, frequent vehicle recalls, high inventory level of passenger cars and currency fluctuations are few concerns the company has been facing.

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

Enterprise Products Partners' shares have gained +1.4 over the last year, even as the Zacks Oil Production Pipeline MLP industry declined by -7.7%. Enterprise Products has an extensive network of pipeline that spreads over almost 50,000 miles. The pipeline is connected to every major U.S. shale play and provides services to producers and users of commodities by transporting natural gas liquid (NGL), natural gas, crude oil and refined products.

The partnership has raised its cash distribution for 52nd successive quarters, reflecting stable fee-based cash flow from diversified midstream assets. It is expected that Enterprise Products Partners will maintain the trend as the partnership has a backlog of almost $9 billion fee-based growth projects.

However, the partnership's escalating debt since 2012 reflects its weak balance sheet. The Zacks analyst is concerned about Enterprise Products' rising operating costs.

(You can read the full research report on Enterprise Products Partners here >>> ) .

Other noteworthy reports we are featuring today Berkshire Hathaway (BRK.B), PetroChina (PTR) and Automatic Data Processing (ADP).

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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

CVS Health (CVS) Rides on Strong PBM Growth amid Retail Woes

General Motors (GM) Drives on Crossovers, Weak Pricing Ails

Enterprise (EPD) to Grow on Fee-Based Contracts, Debts High

Featured Reports

O'Reilly (ORLY) Gains on Store Openings, SG&A Expenses a Woe

Per the Zacks analyst, its strategy to open stores is enabling O'Reilly to grow in existing markets and expand into new markets. However, high fixed costs leading to increased expenses is a concern.

PPL Corporation (PPL) Gain from Rate Hike, Weather Ails

The Zacks analyst believes PPL Corporation is set to gain from new gas rates in its Kentucky Regulated segment. However, unfavorable weather in its service territories weigh on the upside.

Automatic Data Processing (ADP) Drives on Strong Retention

Per the Zacks analyst, Automatic Data Processing is benefiting from strong retention rate along with improving new business bookings.

Infrastructure Modernization to Aid Ameren (AEE), Costs Hurt

Per the Zacks analyst, Ameren's strong capital plan to modernize and rebuild its aging infrastructure will boost its future growth trajectory.

Cognizant's (CTSH) Healthcare Unit Gets a Boost From Buyouts

Per the Zacks analyst, Cognizant is benefitting from the ongoing digital transition and strategic buyouts like TriZetto are boosting performance of its business segments especially healthcare.

Project Investments, Cost Cuts to Aid Air Products (APD)

Per the Zacks analyst, Air Products will gain from project backlog and strategic investments in high-return projects.

Becton's Takeover Price Limits Upside for C. R. Bard (BCR)

The covering analyst feels C.R. Bard offers limited value to investors in the near term owing to it trading above Becton, Dickinson's takeover price.

New Upgrades

Margin Growth and Buyouts to Aid Parker-Hannifin (PH)

Per the Zacks analyst, Parker-Hannifin's revamped "Win Strategy" will continue to boost margins, going ahead. Also, CLARCOR and Helac buyouts are expected to fortify filtration and hydraulics units.

Upstream Unit, Lower Lifting Costs Boost PetroChina (PTR)

Stronger crude price, together with lower oil and gas lifting costs helped PetroChina's E&P unit swing back to profitability. This has made the Zacks analyst turn bullish on the company.

Regency (REG) to Grow on Solid Tenant Roster, Equity One Merger

Per the Zacks analyst, Regency's merger with Equity One has solidified its retail real estate portfolio. Also, leading grocers as anchor tenants drive dependable traffic and generate steady revenues.

New Downgrades

Berkshire's (BRK.B) Exposure to Cat Loss Hurts Underwriting

Per the Zacks analyst, Berkshire Hathaway's exposure to catastrophe losses poses a concern as its property and casualty insurance business generates maximum return on equity.

Subscriber Loss, High Debt Levels Hurt Discovery (DISCA)

The Zacks analyst is concerned about the accelerating loss of Discovery's U.S. subscribers. Escalated debt levels and high costs pose further challenges to the company.

Freight & Commodity Costs Weigh on TreeHouse Foods (THS)

Per the Zacks analyst, escalated freight expenses and commodity prices dented TreeHouse Foods' operating income in the third quarter, and are expected to be detrimental to the bottom line in 2017.

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PetroChina Company Limited (PTR): Free Stock Analysis Report

General Motors Company (GM): Free Stock Analysis Report

Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report

CVS Health Corporation (CVS): Free Stock Analysis Report

Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report

Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report

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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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