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Top Research Reports for Visa, AIG & Delta

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Monday, March 12, 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 Visa (V), AIG (AIG) and Delta (DAL). 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 >>>

Buy-rated Visa 's shares have marginally underperformed the Zacks Financial Transaction Services industry over the last one year (+38.2% vs. +38.6%). But Visa's key business drivers, payments volume, cross model volume and process transactions remained strong and stable across the globe.

Numerous strategic acquisitions and alliances, technology upgrades and effective marketing have paved the way for its long-term growth that have led to consistent revenue growth over the past several years. The Zacks analyst thinks Visa is well poised to gain from the growing electronic payment processing and strong international business.

A solid balance sheet ensures effective capital deployment. Visa's first-quarter fiscal 2018 results beat the estimates and were up year over year. Nevertheless, high client incentives, forex volatility are some of the headwinds.

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

Shares of AIG have underperformed the Zacks Multi-Line Insurance industry over the last three months, losing -4.1% vs. -3.6%. AIG's fourth-quarter 2017 earnings missed the Zacks Consensus Estimate and deteriorated from the year ago quarter.

The underperformance stemmed from the negative impact of huge catastrophe losses and low premium in the General Insurance segment. However, the Zacks analyst thinks a number of asset sale and business divestitures made over the past many years have streamlined the company to some extent.

Recently, the insurance giant appointed Brian Duperreault as its new CEO with expectations of improving operations by completing ongoing restructuring initiatives and making additional changes. The company has been suffering from tough market conditions and its massive size with numerous uncorrelated businesses creating little or no synergy. Weakness in its General Insurance segment and an exposure to catastrophes continue to remain concerns.

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

Buy-rated Delta 's shares rallied +18.5% over the last one year, outperforming the Zacks Airline industry's +17.4% gain. Delta has been performing well on the unit revenue front and is expected to continue doing so in 2018 as well.

Notably, it expects total unit revenues (excluding refinery sales) to increase in the band of 2.5% to 4.5% (on a year-over-year basis) in the first quarter of 2018. The company's efforts to reward shareholders are also impressive. In 2017, it returned $2.4 billion to shareholders.

The Zacks analyst also likes the company's initiatives to reduce its debt levels. The new tax law, which reduces its corporate tax rate significantly, is anticipated to aid the company's performance, going forward.

However, high fuel costs do not bode well for the company. Fuel price, including taxes and refinery impact, is envisioned between $2.05 and $2.10 per gallon in the first quarter of 2018.

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

Other noteworthy reports we are featuring today include Public Service Enterprise (PEG), Square (SQ) and Mohawk (MHK).

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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

Visa (V) Grows on International Business, Digital Moves

AIG Gains from Divestitures, Commercial Business Ails

Unit Revenue Growth, Dividends & Buybacks Aid Delta (DAL)

Featured Reports

Loews (L) Set to Grow on Solid Underwriting, Hotel Business

Per the Zacks analyst, Loews is poised to grow on solid underwriting results from CNA Financial, growing Loews Hotels operations, better prospect of Boardwalk Pipeline and a strong capital position.

Dollar Tree's (DLTR) Comps Growth Trend to Boost Earnings

Per the Zacks analyst, continued growth in comps is likely to aid the company's bottom line.

Domino's (DPZ) Benefits from Anywhere Ordering Platform

The Zacks analyst believes that Domino's anywhere ordering platform innovation is a major step in the evolution of the company's ever-growing suite of exclusive and revolutionary ordering platforms.

XL Group (XL) Gains on Solid Insurance, Reinsurance Business

Per the Zacks analyst, XL Group's focus on insurance and reinsurance business offering solid return on capital over the pricing cycle position it well for growth.

Robust Portfolio & Expanding Clientele Drives Square (SQ)

Per the Zacks analyst, Square's focus on integration, automation, and platform are driving customer base.

Store Openings & Core Business Focus Drive AutoZone (AZO)

Per Zacks analyst, AutoZone is focusing on raising sales through store expansion. Also, its aim to shed non-core business & focus more on core Do-It-Yourself and Do-It-for-Me operations is aiding it.

Mohawk (MHK) to Gain from Expansion & Acquisitions

Per the Zacks analyst, Mohawk's endeavor to explore numerous investment options for expansion and acquisitions are encouraging.

New Upgrades

Public Service Enterprise (PEG) Up on Solid Cape-Ex Plan

Per the Zacks analyst, strategic investment plans help Public Service Enterprise in offering reliable, cleaner and affordable energy to customers. It will spend $13-$15 billion during 2018-2020.

Higher U.S. Land Activity Boosts Helmerich & Payne (HP)

The Zacks analyst believes that the improving outlook at Helmerich & Payne's U.S. Land unit will provide the company with exciting opportunities to redeploy its technologically-advanced FlexRigs.

Cintas (CTAS) to Benefit From Enhanced Sales Activity

Per the Zacks analyst, new channel sales growth supported by a strong liquidity position is expected to boost the company's future margins.

New Downgrades

Overdependence on Emricasan Ails Conatus (CNAT)

Per the Zacks analyst, in the absence of approved products, Conatus is completely dependent on the successful development of Emricasan. Any regulatory setback could severely hamper Conatus' prospects.

Ensco (ESV) Hit by Rising Contract Drilling Cost of Floaters

The significant rise in contract drilling expenses of floaters and jackups hurts Ensco, according to the Zacks analyst. Negative free cashflow is another concern.

Crowded CNS Disorder Space Hurts Impax's (IPXL) Top-line

Per the Zacks analyst, competition in the branded product market from Parkinson's disease and CNS disorder focused large pharmaceutical companies may hamper Impax's top-line in the near-term.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Visa Inc. (V): Free Stock Analysis Report

Square, Inc. (SQ): Free Stock Analysis Report

Public Service Enterprise Group Incorporated (PEG): Free Stock Analysis Report

Mohawk Industries, Inc. (MHK): Free Stock Analysis Report

Delta Air Lines, Inc. (DAL): Free Stock Analysis Report

American International Group, Inc. (AIG): 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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