Friday April 28, 2017
Today's Research Daily features new research reports on 16 major stocks, including Comcast (CMCSA), Medtronic (MDT) and FedEx (FDX).
Comcast shares have been strong performers since the election on hopes of favorable regulatory changes on the net neutrality front (the stock is up +26.6% since November 8th and +14.7% year to date). The company posted strong first quarter 2017 financial results. Comcast's continued momentum reflects the strength in its Cable business and significant improvement in the NBC Universal segment.
The company has been taking on the challenge of customer churn and 'cord cutting' head on through its own Internet TV service "Stream" and the incorporation of Netflix services into its X1 platform. Comcast is working towards 5G network deployment and plans to launch its own wireless service in mid-2017. Plans to start its own wireless service could also make strategic sense by increasing the value of its 'bundle' that adds to customer 'stickiness'. (You can read the full research report onComcast here . )
Shares of Medtronic have outperformed the Zacks categorized Medical - Products industry over the past one year, gaining +16.7% vs. +14.3%. Ahead of its fourth quarter fiscal 2017 result, the Zacks analyst thinks Medtronic will do well banking on strong performances of major business groups with sustainability across all regions. Gradually stabilizing trend in the global CRHF market is a major cause for optimism.
The company is currently on a spree of gaining regulatory approvals for its minimally invasive devices which is quite encouraging. On the flip side, escalating costs and expenses weighing on margins is a concern. Also, an unfavorable foreign exchange position continues to remain a drag. (You can read the full research report on Medtronic here. )
FedEx shares have been strong performers in the post-election period (up +5.7% vs. down -3.6% for the Zacks Air Freight industry & -2.9% for rival UPS). The Zacks analyst likes FedEx's decision to reward shareholders through dividend payments and share buybacks. FedEx's bullish view for the fourth quarter of fiscal 2017 is encouraging.
Consequently, the Zacks Consensus Estimate for the quarter has increased 4.6% to $3.84 per share over the last sixty days. FedEx's expansion related efforts also raise optimism. However, headwinds like high costs raise concerns. (You can read the full research report on FedEx here. )
Other noteworthy reports we are featuring today include American Tower (AMT), Praxair (PX) and Twitter ( TWTR ).
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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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 Preview reports. 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 TechnipFMC's robust operating margin reflects cost reduction efforts and excellence in project execution. But reduced activity levels remain an issue.
The covering analyst believes American Tower's Indian, EMEA and Latin American operations and tower buyouts in emerging markets have helped drive its top line.
Amphenol recorded solid first-quarter results with healthy year-over-year increase in earnings and revenues that also beat estimates. Further, it raised its earlier view for 2017.
Praxair beat its first-quarter earnings and revenues estimates, and hiked its earnings forecast for 2017.
The Zacks analyst is pleased with the better-than-expected Q4 earnings and impressive revenue guidance. Also, Xilinx will continue to benefit because of growing demand for 28-nm, 20-nm and 16-nm nodes.
The covering analyst thinks Fiserv will continue to benefit from its diverse client base, strong product portfolio and cost cutting efforts.
The Zacks analyst thinks Discover Financial's first quarter earnings beat, that resulted from strong revenue growth in its direct banking segment, further strengthens its future growth potential
Per the Zacks analyst, Twitter's focus on live and user friendly changes seems to have paid off as reflected in relatively strong user growth in Q1. User growth is helpful for attracting ad dollars.
Waste Management started 2017 on a positive note with strong first-quarter results, driven by healthy year-over-year increase in earnings and revenues. It also reaffirmed its earlier view for 2017.
Higher revenues from Wynn Palace and solid performance of its Las Vegas Operations backed Wynn Resorts' Q1 results. The improving operating environment in Macao should continue to drive growth ahead.
The Zacks analyst thinks warmer-than-normal winter hampered American Electric's Q1 revenues as well as earnings growth. Its huge investment plans may also weigh down on its growth trajectory.
The covering analyst is disappointed by the lower-than-expected Q1 earnings. Moreover, the company's move to trim its 2017 earnings view, primarily due to soft consumer rental demand, raises concerns.
The recent cut in Equinix's guidance for FY17 makes the Zacks analyst increasingly cautious about its growth prospects.