Analyst Reports For Bank Of America, Home Depot & Procter & Gamble
Zacks Investment Research | Oct 17, 2016 11:54PM ET
Tuesday, October 18, 2016
Today's Research Daily features new research reports on 16 major stocks, including Bank of America (NYSE:BAC), Procter & Gamble (PG) and Home Depot (NYSE:HD).
Bank of America have lagged the broader market as well as the Finance sector in the year-to-date period, given the combination of the banking giant's reputation for operational challenges and the overall tough operating for banks environment. But part of these headwinds appear to have started lifting as reflected in the company's strong quarterly results, which followed similar momentum from a number of its peers as well. Bank of America’s third-quarter earnings handily surpassed the Zacks Consensus Estimate, driven by impressive growth in fixed income trading revenues and investment banking fees, along with higher mortgage banking income. Efficient expense management also supported the bottom line. The analyst likes this buy-rated company’s efforts to improve loan and deposit balances, restructure its balance sheet and steadily deploy capital. (You can )
You can check out our analysis of the Q3 earnings season, with a focus on bank earnings, in this week's Earnings Preview report - Reassuring Start to the Q3 Earnings Season >>
Procter & Gamble shares have gained more than 10% year-to-date on the back of the company's strong brand recognition, diversified portfolio, impressive product development capabilities and marketing prowess and strong cash flows. The company is investing in its brands and products and redesigning its supply chain to improve productivity and organic growth. Though the portfolio restructuring plan is hurting near-term sales and profits, it will ultimately increase profitability. (You can )
Home Depot shares have not been doing too well recently. But the analyst likes the company’s focus on customer experience and its solid execution. Home Depot is also gaining from the housing market recovery and these factors helped it post its highest quarterly sales and earnings, in the last reported quarter, following which it raised its fiscal 2016 earnings view. However, intense competition from specialty stores and mass retailers as well as the impact of soft economic recovery on discretionary spending may prove to be deterrents. (You can )
Other noteworthy reports we are featuring today include Microsoft (NASDAQ:MSFT), Wal-Mart (NYSE:WMT), and PNC Financial (NYSE:PNC).
You can find all of today's stock research reports >>
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Today's Must Read/h6
Featured Reports/h6
Lindsay beat fourth-quarter fiscal 2016 earnings driven by higher irrigation and infrastructure revenues. Lower commodity prices and farm income will affect irrigational revenue growth in fiscal 2017.
According to the Zacks analyst, Microsoft's business reorganization and "cloud-first mobile-first" focus are encouraging along with enterprise strength and strong new products
The covering analyst thinks Apple's focus on Chinese and the underpenetrated Indian markets should benefit long term growth. But, stiff competition from regional players is a major concern.
The Zacks analyst believes that increased usage of smartphones and tablets are creating impressive demand for tower leasing that will help American Towers.
Being one of the most oil-weighted majors, the covering analyst thinks Chevron is likely to outperform its peers following the recent OPEC deal and the subsequent advancement of crude.
The Zacks analyst believes Cisco's partnerships with the likes of salesforce.com and Pure Storage and recent acquisition of CloudLock will drive its overall growth.
The covering analyst thinks Time Warner's investments in video content and technology augur well.
Lindsay beat fourth-quarter fiscal 2016 earnings driven by higher irrigation and infrastructure revenues. Lower commodity prices and farm income will affect irrigational revenue growth in fiscal 2017.
According to the Zacks analyst, Microsoft's business reorganization and "cloud-first mobile-first" focus are encouraging along with enterprise strength and strong new products
The covering analyst thinks Apple's focus on Chinese and the underpenetrated Indian markets should benefit long term growth. But, stiff competition from regional players is a major concern.
The Zacks analyst believes that increased usage of smartphones and tablets are creating impressive demand for tower leasing that will help American Towers.
Being one of the most oil-weighted majors, the covering analyst thinks Chevron is likely to outperform its peers following the recent OPEC deal and the subsequent advancement of crude.
The Zacks analyst believes Cisco's partnerships with the likes of salesforce.com and Pure Storage and recent acquisition of CloudLock will drive its overall growth.
The covering analyst thinks Time Warner's investments in video content and technology augur well.
New Upgrades/h6
The Zacks analyst is positive about Synopsys' recent product launches, acquisitions and deal wins which are likely to drive its forthcoming results.
According to the covering analyst, CSX Corp impressed with earnings and revenues beating estimates in the third quarter. Despite decline in volumes, its shareholder returns policy remains commendable.
The Zacks analyst remains optimistic about PNC Financial as it recorded growth in both net interest income and fee income in Q3. Higher expense should not be a worry, given its cost saving moves.
The Zacks analyst is positive about Synopsys' recent product launches, acquisitions and deal wins which are likely to drive its forthcoming results.
According to the covering analyst, CSX Corp impressed with earnings and revenues beating estimates in the third quarter. Despite decline in volumes, its shareholder returns policy remains commendable.
The Zacks analyst remains optimistic about PNC Financial as it recorded growth in both net interest income and fee income in Q3. Higher expense should not be a worry, given its cost saving moves.
New Downgrades/h6
Despite the Q3 earnings beat, the Zacks analyst is concerned about the company's struggles on the revenue front. The 2017 capacity growth view, however, is encouraging.
Though Wal-Mart has been delivering positive results of late, per the covering analyst, the company is facing huge expense burden driven by investments in wages and e-commerce activities.
According to the Zacks analyst, increase in expenses at the Twenty-First Century Fox's Cable Network Programming may dent the company's margins and in turn the bottom line in the coming quarters.
Despite the Q3 earnings beat, the Zacks analyst is concerned about the company's struggles on the revenue front. The 2017 capacity growth view, however, is encouraging.
Though Wal-Mart has been delivering positive results of late, per the covering analyst, the company is facing huge expense burden driven by investments in wages and e-commerce activities.
According to the Zacks analyst, increase in expenses at the Twenty-First Century Fox's Cable Network Programming may dent the company's margins and in turn the bottom line in the coming quarters.
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