Tuesday, January 24 2017
Today's Research Daily features new research reports on 16 major stocks, including American Express (AXP), Time Warner (TWX) and Eli Lilly (LLY).
Buy rated American Express fourth-quarter 2016 adjusted earnings per share (EPS) missed the Zacks Consensus Estimate. The company also continues to witness mounting loan loss provisions. Moreover, a strong U.S. dollar, loss of Costco as a client and intense competition remain major near-term concerns.
The company has raised its guidance for 2017. Additionally, over the last year the company has gained 38.1%, higher than the broader finance sector's gain of 29.5%. The analyst also likes its solid market position, strength in card business and significant opportunities from the secular shift toward electronic payments. (You can read the full research report onAmerican Expresshere. )
Time Warner shares have handily outperformed the broader market as well as the media space (the stock is up more than 38.7% over the last one year) on greater appreciation for the company's proactive strategic initiatives in response to the evolving media landscape. These include investments in digital platforms like the Hulu stake, HBO GO & HBO NOW, the Flixter purchase and the device-agnostic UltraViolet digital movie technology.
In a way, Time Warner has shown its willingness and ability to explore every possible avenue to monetize its substantial content. The fact that it has an impressive track record of earnings surprises and operating and capital efficiencies further add to the Time Warner story. (You can read the full research report onTime Warnerhere. )
Pharmaceutical stocks have been under pressure since last year on pricing and regulatory concerns in the current political backdrop and Eli Lily shares have been no different. Lilly's third quarter results were below expectations with earnings and revenues missing estimates, 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 starting Dec 2016 and to return excess cash through share buybacks. Lilly has issued a bullish outlook for 2017 and estimates have moved up lately ahead of the company's Q4 release. (You can read the full research report onEli Lillyhere. )
Other noteworthy reports we are featuring today include Hewlett Packard (HPE), Bank of New York Mellon (BK) Dow Chemical (DOW).
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Today's Must Read
The Zacks analyst thinks BNY Mellon remains well poised to control expenses in the near term thereby improving profits. However, the various regulatory restrictions might hamper bottom-line growth.
The covering analyst thinks Rockwell Collins' revenues increased year over year driven by higher sales at Government Systems and Information Management Services.
The Zacks analyst thinks despite in line Q4 earnings, Sallie Mae recorded continued growth in private education loan originations.
The covering analyst believes that new products, especially Keytruda should boost Merck's sales in 2017 while cost-cutting initiatives will drive the profits.
The Zacks analyst appreciates the company's healthy net subscriber growth. Efforts to expand its product portfolio are also encouraging.
The Zacks analyst thinks that Dow should gain from its cost-cutting and portfolio management actions as well as strategic investments and cost synergies amid pricing and market-based headwinds.
The covering analyst thinks Disney's sturdy movie business and solid performance of the Parks & Resorts division continue to act as catalysts.
Hewlett Packard has been trying to enhance its hybrid IT capabilities as evident from its recent agreements to acquire SimpliVity and Cloud Cruiser. The Zacks analyst thinks this will drive growth.
As per the covering analyst, organic growth remains a key strength at M&T Bank. Higher revenues in Q4 reflected improving loan and deposit balances. Further, strong capital base is a favorable factor.
Ahead of Q1 earnings, the Zacks analyst expects Hologic to grow from approvals of Aptima Quant tests and Seegene tie-up. Its choice to vend unprofitable blood screening profile is to lift top line.
The Zacks analyst thinks shares of Urban Outfitters have significantly fallen in the past three months. Investors are concerned about softer margin outlook, despite reporting higher holiday sales.
Over the last one month, iRobot's stock underperformed the Zacks classified Industrial Automation/Robotics industry. Headwinds like a stronger U.S. dollar and stiff rivalry might hurt upcoming results
The Zacks analyst thinks rising costs and expenses continue to drag Omnicell's bottom line. Legal issues and tough competition also poses threats forcing the company to trade below the broader market.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.