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Top Research Reports for Schwab, NextEra & MetLife

Thursday, May 10, 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 Schwab (SCHW), NextEra (NEE) and MetLife (MET). 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 >>>

Schwab 's shares have outperformed the Zacks Investment Brokers industry over the last six months, gaining +31.7% vs +15.6%. The company has positive record of earnings surprises in recent quarters, having surpassed expectations in three of the trailing four quarters. Its first-quarter 2018 results benefited from higher revenues, partly offset by higher expenses.

The Zacks analyst thinks the company remains well positioned to gain from the rising rate environment and its initiatives to strengthen trading income. Further, the benefits from tax act will aid financials. However, continuous rise in expenses (due to rise in compensation costs) are expected to hurt bottom-line growth. Also, the company's significant dependence on fee-based income remains a concern and might hamper its financials in the near term.

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

Shares of NextEra have outperformed the Zacks Electric Power industry over the last year (the stock is up +17.5% vs. -4.1% decline for the industry). NextEra Energy's first-quarter earnings were better than expectations, thanks to strong contribution from its segments. The Zacks analyst thinks NextEra Energy's investment to strengthen its infrastructure and ongoing capital projects, when completed, will help it serve its expanding customer base more efficiently.

The company's focus on clean energy has helped it lower emission levels and use of new technology has saved on energy bills for its customers. The natural gas pipelines, which came online in first half of 2017, are expected to boost its performance.

However, the company's nature of business is subject to complex and comprehensive federal, state and other regulations. Despite investments made to strengthen its infrastructure the unpredictable nature of natural disaster could derail normal operation and impact profitability.

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

Buy-ranked MetLife 's shares have gained +4.4% over the last three months, outperforming the Zacks Multi-Line Insurance industry, which has lost -2.9% over the same period. The Zacks analyst likes the company's efforts to streamline business, only to focus on core business, are really impressive.

Its revenues grew in 2017 after declining for two years and the trend is likely to continue in 2018. Its strong international operations and disciplined capital management should drive long-term growth. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 2.9% upward over the last 30 days.

MetLife, Inc.'s first-quarter earnings of $1.36 per share beat expectations but declined 7% year over year. The quarter benefited from favorable underwriting, volume growth and a favorable impact of the tax reform. Nevertheless, exposure to catastrophe losses and investment in efficiency programs will put pressure on margins.

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

Other noteworthy reports we are featuring today include Anadarko Petroleum (APC), Williams Partners (WPZ) and Digital Realty (DLR).

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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

Focus on Trading Supports Schwab (SCHW), High Costs a Woe

Infrastructure Spending, Rise in Customer Base Aids NextEra (NEE)

Solid Balance Sheet, Revenue Growth Aid MetLife (MET)

Featured Reports

Solid Portfolio and Balance Sheet Strength Aid Essex (ESS)

The Zacks analyst expects Essex Property to gain from strong property base and solid balance sheet. Yet, aggressive rental concessions and moderate pricing power amid high supply remain worries.

Williams (WPZ) to Grow on Transco Expansion, Debts High

The covering analyst thinks Transco Expansion project will provide Williams Partners with stable fee-based revenue. However, excessive reliance on debt will hurt the partnership.

High Demand for Office Space Aids Boston Properties (BXP)

Per the Zacks analyst, Boston Properties' high-quality assets are expected to benefit from healthy job market. However, rising supply of office spaces and rate hike remain woes.

Strong Leasing, Strategic Buyouts Drive Digital Realty (DLR)

Per the Zacks analyst, Digital Realty is poised for growth on the back of strong leasing activity and strategic buyouts.

Solid Investments Aid Entergy (ETR), High Nuclear Cost Ails

Per the Zacks analyst, solid investment strategies have been driving Entergy's earnings growth. Yet, higher nuclear generation expense is hampering the company's operational growth.

Rising Expenses, Spinoff Cost Ail Henry Schein (HSIC) Margins

Per the Zacks analysts, huge transaction costs related to the planned spin-off of Henry Schein's Animal Health business has put pressure on bottom line.

Strong Business Model Aids Broadridge (BR) Amid Consolidation

The Zacks analyst is optimistic about Broadridge's strong business model from higher recurring fee revenues, buyouts and healthy balance sheet.

New Upgrades

Insperity (NSP) Rides on Solid Client Base, Product Suite

The Zacks analyst believes that Insperity is well poised on higher client retention, rise in worksite employees and diversified ancillary product portfolio. A booming PEO industry is another tailwind.

Motorola (MSI) Poised to Gain from Holistic Growth Dynamics

Per the Zacks analyst, Motorola is poised to gain from robust organic growth, continued strength in order trajectory, disciplined capital deployment and a favorable global macroeconomic environment.

Wendy's (WEN) Rides on Franchising & Re-imaging Initiatives

The Zacks analyst sees Wendy's efforts to re-image its existing units as a means to enhance customer experience and drive traffic whereas franchising is expected to boost earnings.

New Downgrades

Freight & Labor Costs to Hurt Tyson Foods' (TSN) Profits

Per the Zacks analyst, Tyson Foods has been battling rising freight and labor costs, that hurt profits in most units in the second quarter. Management expects these hurdles to linger in fiscal 2018.

Regulations, Risky Deepwater Business Ails Anadarko (APC)

The Zacks analyst believes stringent regulation relating to hydraulic fracturing and inherent risk associated with deep-water operations could adversely impact performance of Anadarko Petroleum.

Sluggishness in Consumable & Service Units Mar Luminex (LMNX)

The Zacks analyst is pessimistic on Luminex's dull performance in Consumable, Service and System units. Luminex functions in competitive life sciences industry which might put margins under pressure.

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Williams Partners L.P. (WPZ): Free Stock Analysis Report

The Charles Schwab Corporation (SCHW): Free Stock Analysis Report

NextEra Energy, Inc. (NEE): Free Stock Analysis Report

MetLife, Inc. (MET): Free Stock Analysis Report

Digital Realty Trust, Inc. (DLR): Free Stock Analysis Report

Anadarko Petroleum Corporation (APC): 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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