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Top Stock Reports for Disney, Caterpillar & General Motors

Wednesday, May 9, 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 Disney (DIS), Caterpillar (CAT) and General Motors (GM). 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 >>>

Disney 's shares have lost -5.3% year to date, underperforming the Zacks Media Conglomerates industry's -2.4% decline in that same time period. Disney's impressive second-quarter fiscal 2018 results benefited from continuing strength at Parks & Resorts segment and stupendous success of Marvel title Black Panther , which were enough to mitigate another dismal performance from its ESPN segment.

Parks & Resorts gained from significant visitor growth, increased per capita spending and shift in the timing of the Easter holiday. However, higher programming costs negatively impacted ESPN's profitability. The Zacks analyst thinks continued subscriber loss remains a concern for the division.

Additionally, higher spending on ESPN+ is likely to hurt profitability. Nevertheless, Disney's scintillating slate of movie titles, Avengers: Infinity War 's impressive collections and strong book rates at Parks & Resorts are positive developments that will help the stock to rebound in the rest of fiscal 2018.

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

Shares of Strong Buy-ranked Caterpillar have gained +49.4% over the past year, outperforming the Zacks Construction and Mining industry which has increased +47.6% over the same period. Caterpillar's first-quarter earnings per share (EPS) soared 120% while revenues surged 32% on a year-over-year basis.

Higher sales volume owing to improved end-user demand across all regions and end markets drove results. Driven by strong order rates, increasing backlog, positive economic indicators Caterpillar expects adjusted EPS at $10.25-$11.25 for 2018, the mid-point of which reflects year-over-year rise of 56%.

The Construction segment will benefit from infrastructure development in China and continued demand improvement in North American residential, non-residential and infrastructure markets. Rising commodity prices will drive Resource Industries and Energy & Transportation's revenues. Cost cutting efforts and additional investments in expanded offerings and services will drive growth.

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

Buy-ranked General Motors ' shares have outperformed the Zacks Domestic Automotive industry over the last one year, increasing +6.1% vs. -1.2%. General Motors' first-quarter 2018 earnings and revenues beat expectations. During the quarter, crossover sales rose 23% on a year-over-year basis. However, both earnings and revenues declined on a year over year basis.

The Zacks analyst thinks the company's capital allocation strategy, initiatives to make its vehicles more advanced, safer and fuel efficient and focus on technology development are major positives. Its restructuring activities are also expected to benefit the company in the long run. Also, the company is raising investment in emerging markets to boost global sales. Yet frequent vehicle recalls, high inventory level of passenger cars and unfavorable currency translation effects are few headwinds for the company.

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

Other noteworthy reports we are featuring today include Phillips 66 (PSX), Capital One (COF) and Cognizant (CTSH).

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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

Robust Parks & Resorts, Studio Strength Drives Disney (DIS)

Caterpillar (CAT) Rides on Buoyant Global Demand, Cost Cuts

Strong Crossover & Truck Sales Drive General Motors (GM)

Featured Reports

Phillips 66 (PSX) Banks on Chemicals, Turnaround Costs High

The Zacks analyst believes that concerns regarding Phillips 66's high refinery turnaround costs will be offset by the company's focus on more profitable business units like Midstream and Chemicals.

Teva (TEVA) Holds Ground Amid Copaxone Generic & Other Woes

The Zacks analyst believes Teva's re-structuring efforts have given it some stability amid significant challenges.

Card Business Aids Capital One (COF), Asset Quality a Woe

Per the Zacks analyst, Capital One's profitability will continue improving, given the strength in its credit card and online banking operations.

Organic Investment, Cost Management Aids Exelon (EXC)

The Zacks analyst believes Exelon's planned investment over the 2018-2021-time frame and cost savings initiatives will further boost its performance over the long run.

Square (SQ) Rides on Growing Gross Payment Volume; Risks Remain

Per the Zacks analyst, Square benefits from robust gross payment volume which is driven by growing number of larger sellers on its platform.

Sturdy U.S. Business Drives Sysco (SYY), Freight Costs a Woe

Per the Zacks analyst, Sysco's U.S. Broadline operations have been gaining from rising local case volumes for 16 straight quarters.

Digital Innovations Support Fidelity (FIS), Debt Level Hurts

Per the Zacks analyst, Fidelity is well poised to benefit from investment in mobile banking and innovative products such as PayNet and BuyWay.

New Upgrades

U.S. Oil Focus, Divestiture of Assets Aids Anadarko (APC)

The Zacks analyst believes Anadarko Petroleum's focus on high-quality Delaware and Denver-Julesburg basins and divestitures of non-core assets are boosting performance.

V.F. Corp. (VFC) to Gain from Solid Direct-to-Consumer Sales

Per the Zacks analyst, V.F. Corp. gains from its direct-to-consumer business that grew 29% in the recent quarter. This business is expected to deliver organic growth of 8-10% in fiscal 2019.

Growing Cancer Test Reimbursements Aid Genomic Health (GHDX)

The Zacks analyst is bullish about the new National Comprehensive Cancer Network prostate cancer guidelines and further new data expanding private coverage for Genomic Health's Oncotype DX GPS test.

New Downgrades

Muted Large Bank Spending Hurts Cognizant's (CTSH) Top-line

Per the Zacks analyst, Cognizant's financial services business was negatively impacted by sluggish spending from large banks as well as portfolio transition.

Dull Performance in North America Mars Fresenius (FMS)

Fresenius faces a cutthroat regulatory environment in almost every region in which it operates. Specifically, the Zacks analyst is pessimistic about the recent dull performance in North America.

Low Enrollments Mar Universal Technical's (UTI) Prospects

The Zacks analyst stresses that declining enrollment trends owing to changing attitudes about education and employment have hurt Universal Technical's performance.

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

Phillips 66 (PSX): Free Stock Analysis Report

General Motors Company (GM): Free Stock Analysis Report

The Walt Disney Company (DIS): Free Stock Analysis Report

Cognizant Technology Solutions Corporation (CTSH): Free Stock Analysis Report

Capital One Financial Corporation (COF): Free Stock Analysis Report

Caterpillar Inc. (CAT): 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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