Wednesday, February 15 2017
Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway (BRK.B), Eli Lilly (LLY) and T-Mobile (TMUS).
Berkshire Hathaway shares have modestly lagged the Zacks Finance over the past 12 months (+29.8% vs. +35.4%), but have done better than the S&P 500 index in that same time period (+29.8% vs. +22.4%). The insurance business, which remains at the core of this financial conglomerate's business portfolio, is as much a beneficiary of the post-election momentum in interest rates as are traditional banks and brokers. Berkshire Hathaway is more than insurance - it has assets in the railroads, oil pipelines and many other spaces. The company's name has long been synonymous with Warren Buffet, concerns about whose succession have been an issue for the stock. The company is expected to report fourth quarter results on Feb 24. (You can read the full research report onBerkshire Hathawayhere >> )
Pharmaceutical stocks have been under pressure since last year on pricing and regulatory concerns and Eli Lily shares have been no different. That said, the stock has done modestly better than the peer group; it is up +7.6% over the last 12 months vs. +5.8% for the Zacks Pharma industry and +4.3% for the Zacks Medical sector. Lilly's fourth-quarter results were mixed with earnings missing estimates but revenues coming out ahead. But the analyst is encouraged by the fact that Lilly expects to launch 20 new products in a 10 year time-frame ranging from 2014 to 2023 and could launch at least 2 new indications/line extensions on average every year. Moreover, Lilly expects to return to annual dividend increases and to return excess cash through share buybacks. (You can read the full research report onLillyhere >> )
T-Mobile shares have been strong performers lately - the stock is up +68.1% over the last 12 months, handily outperforming the Zacks National Wireless industry (up +12.4%) and the broader Zacks Telecom Services industry (+6.9%). Driving this outperformance is the success of the carrier's cultivation of an 'insurgent' persona through promotional measures like the 'Un-carrier' initiatives. Being the fourth national carrier, the company regularly gets mentioned in industry consolidation rumors, which helps the stock price. The Zacks analyst also likes the company's network expansion plans such as 5G trials with Ericsson as well as 4G LTE network improvement and expansion. On the flip side, T-Mobile US operates in a highly competitive and saturated wireless market where it has to work hard to maintain its growth momentum. (You can read the full research report onT-Mobilehere >> )
Other noteworthy reports we are featuring today include Oracle (ORCL), Activision (ATVI) and Marathon Petroleum (MPC).
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Director of Research
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 Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here >>>
Today's Must Read
While appreciating MPC's scale advantage, impressive asset quality and extensive midstream/retail network, the covering analyst remains concerned over the weakness in refining margins.
The Zacks analyst believes that 2017 will be a pivotal year for Alnylam. It will release phase III data for patisiran and advance other key candidates, fitusiran and givosiran into late-stage trials.
According to the Zacks analyst, strength in order win as reflected by the reported quarter, will continue in the near-to-mid term based on a solid design-win pipeline.
The covering analyst thinks cost control efforts remained a key strength at UBS Group AG with target of CHF 2.1 billion in net cost reductions by 2017.
The Zacks analyst thinks Fidelity managed to keep its revenue momentum alive in Q4 driven by growth in both segments.
The covering analyst thinks Q4 results depict Comerica's improved operational efficiency from GEAR-UP initiatives. Changing rate environment and improving credit quality has strengthened its position.
According to Zacks Analyst, rising competition and stringent government regulations could be growth deterrents for Buckeye Partners going forward.
ArcelorMittal topped earnings expectations in Q4. The Zacks analyst is encouraged by its actions to cut debt & costs and expand capacity, which should lead to better operational performance.
The covering analyst thinks increasing digital revenues, popular franchises, King Digital buyout and attempts at becoming a broad based entertainment giant should fuel Activision's long term growth.
The Zacks analyst thinks Regency Center's Q4 FFO beat, backed by revenue growth, is encouraging. Further, the Equity One merger deal is likely to boost its position in the retail real estate market
According to the Zacks analyst, the renewed legal fight against Google over Android's use of Java will remain an overhang on Oracle's stock price in the near term.
The covering analyst thinks Regeneron's efforts to develop its pipeline are impressive and should reap results even though fourth-quarter results missed estimates and the guidance for 2017 is weak.
In Q4, Highwoods missed revenues estimate. In fact, per the Zacks analyst, its huge development pipeline, large exposure to office assets and interest rate hike are adding to the woes of Highwoods.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.