Top Stock Reports for Disney, U.S. Bancorp & EOG Resources

Thursday, December 20, 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), U.S. Bancorp (USB) and EOG Resources (EOG). 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 increased +1.6% year to date, outperforming the Zacks Media Conglomerates industry's -1.1% decline in that same time period. The Zacks analyst thinks Disney's top line will benefit from the solid line-up of big budget movies slated to be released over the next 18 months.

Moreover, solid content portfolio at ESPN+ as well as impressive Disney+ original content line-up, expected to release in 2019, is expected to win subscribers rapidly. However, Disney's ongoing investments in its technology platform are expected to keep margins under pressure. Additionally, higher programming costs at ESPN remains a concern.

Weakness in the Consumer Products & Interactive Media segment is a headwind. Further, higher labor-related costs and softness experienced in tourism and consumer confidence in China are likely to impact Parks & Resorts segment in the near term.

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

Shares of Buy-ranked U.S. Bancorp have outperformed the Zacks Major Banks industry over the past six months, losing -9.4% vs -16.9%. The company possesses an impressive earnings surprise history, beating expectations in all the trailing four quarters.

The Zacks analyst thinks U.S. Bancorp's prospects will likely get support from its solid business model, core franchise, lower tax rate, rising interest rate and diverse revenue streams. Also, its organic growth remains solid and will likely benefit from the improving economic scenario. Though escalating expenses due to its ongoing investments in technology and likely increase in legal expenses remain concerns, U.S. Bancorp remains well poised to grow through acquisitions.

(You can read the full research report on U.S. Bancorp here >>> ).

EOG Resources ' shares have declined -12.6% over the past year, outperforming the Zacks Oil & Gas E&P Industry, which has slumped -33.2% over the same period. Besides being the largest player in the Eagle Ford, EOG Resources also holds significant top tier acreage in Permian, Bakken play and Powder River Basin.

The Zacks analyst thinks that with the recent discovery of Mowry and Niobrara sites in Powder River Basin, the firm has solidified its position and poised itself for greater returns. Moreover, EOG Resources' healthy financials provides it financial flexibility to tap into growth opportunities. Also, in the third quarter of 2018, the company's discretionary cash flow surged more than 95% year over year, reflecting strength in its operations.

However, the company's lack of exposure to international resources is a drag. Its Permian operations can also take a hit due to takeaway capacity constraints. Rising operating expenses, in particular the gathering and processing cost, possesses threat to its bottom-line. Therefore, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include 3M (MMM), HCA Healthcare (HCA) and Micron Technology (MU).

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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

Disney (DIS) to Gain From Solid Big Budget Movie Line-up

Increasing Rates, Loan Growth Supports U.S. Bancorp (USB)

EOG Resources (EOG) Banks on Bakken, Gathering Costs High

Featured Reports

Acquisitions, Growing Admissions Aid HCA Healthcare (HCA)

Per the Zacks analyst, the company's focus on acquiring a number of hospitals in high growth markets have led to patient admission growth from past several quarters, thereby aiding revenues.

Project Expansion Aids Sempra Energy (SRE), Rate Risk Hurts

Per the Zacks analyst, the company's future cash inflows will likely enjoy tailwinds from the expansion of LNG terminal projects. However, increasing interest rate risks could hurt future performance.

Rising Rates Support Northern Trust (NTRS), High Costs a Woe

Per the Zacks analyst, higher interest rates and Northern Trust's focus on expanding client base will support strong organic growth.

TOP Strategy Aids Citizens Financial (CFG), Legal Costs a Woe

Per the Zacks analyst, Citizens Financial's "Tapping Our Potential" (TOP) initiatives are expected to boost earnings performance in 2018.

Lennar's (LEN) SG&A Leverage Improves, Gross Margin Soft

Per the Zacks analyst, Lennar remains strong owing to diverse revenue mix and improving SG&A leverage.

Medidata (MDSO) Gains From Subscription Arm Amid Competition

Strong prospects in the Subscription segment aid Medidata. The Zacks analyst is apprehensive about the competitive clinical trial solutions market.

Advance Auto (AAP) to Gain from Expansion Moves, Costs Ail

Per the Zacks analyst, store openings and strengthening online presence will aid Advance Auto to drive sales.

New Upgrades

Monster (MNST) Poised to Gain From Strong Energy Drinks Unit

Per the Zacks analyst, Monster Beverage has been witnessing solid momentum in its energy drinks category driven by its Monster Energy brand. This is likely to continue through the rest of 2018.

Accretive Acquisitions, Medicare Business Aids Humana (HUM)

Per the Zacks analyst, strategic buyouts like Curo and Kindred have helped Humana expand its portfolio, which in turn, aided its top-line. Moreover, its robust Medicare Business is another positive.

Republic Services (RSG) to Gain From Shift to CNG Vehicles

The Zacks analyst believes that Republic Services' efforts to shift to compressed natural gas (CNG) vehicles will lower cost and boost bottom-line growth.

New Downgrades

Paychex (PAYX) Continues to Grapple With Higher Expenses

The Zacks analyst is worried about Paychex's rising expenses required to fund growth of PEO business and higher compensation-related costs and acquisitions.

CPU Shortages, Decline in Cryptocurrency Hurts Micron (MU)

Per the Zacks analyst, CPU shortages in the client computer market, high inventories in gaming cards and drop in cryptocurrency-related demand are impacting Micron's top-line.

3M (MMM) Troubled by Inflation & High Interest Expenses

Per the Zacks analyst, material price inflation, high interest expenses and stiff competition from local players might hurt 3M's near-term results.

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U.S. Bancorp (USB): Free Stock Analysis Report

Micron Technology, Inc. (MU): Free Stock Analysis Report

3M Company (MMM): Free Stock Analysis Report

HCA Healthcare, Inc. (HCA): Free Stock Analysis Report

EOG Resources, Inc. (EOG): Free Stock Analysis Report

The Walt Disney Company (DIS): 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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