Analyst Reports For Macy's, Disney, ConocoPhillips & Others
Zacks Investment Research | Aug 15, 2016 11:52PM ET
Tuesday, August 16, 2016
Today's must-read reports are for Disney (DIS), ConocoPhillips (NYSE:COP) and Macy's (NYSE:M).
Macy's shares have spiked on the earnings announcement, helping the stock build on earlier momentum (the stock is up almost 14% year to date). In addition to top and bottom-line beats, the department store giant reiterated earlier guidance for the year and showed notable improvement in inventories level after two quarters of sub-par performance. Importantly, Macy's announcement a major restructuring that will involve the retailer reducing its store count by more than 10%. Estimates have been going up lately, pushing the stock to Zacks Rank # 2(Buy). (You can here>> )
Disney shares have lagged this year on growing concerns about the long-term sustainability of ESPN's dominance in the changing media landscape of chord cutting and live streaming. In the updated research report issued today, the Zacks analyst discusses teh pros & cons of investing in Disney shares, but likes the growth outlook for the media giant's Parks & Resorts division. (You can here>> )
ConocoPhillips didn't impress with its Q2 quarterly report and the company's hasn't benefited as much from this year's oil rebound as many of its peers have. But this underperformance and resultant valuation discount does offer a good opportunity for patient long-term investors given the company's attractive and relatively low-risk asset base in North America, Australia and Asia. (You can here>> )
You can find all of today's stock research reports
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Sheraz Mian
Director of Research
Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include portfolios.
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Today's Must Read/h6
Featured Reports/h6
The Zacks analyst believes that the impressive business model of National Oilwell has resulted in the narrower-than-expected loss in second-quarter 2016.
Freeport's Q2 loss was wider than expected. The covering analyst thinks that aggressive cost reduction actions will help the company stay afloat amid a still weak copper pricing environment.
The Zacks analyst thinks Q2 results reflect strength across all merchandise divisions, reduced expenses, improved margins and enhanced digital operations.
Seagate provided an optimistic earnings outlook for FY17, which encourages the Zacks analyst.
The covering analyst thinks higher digital sales and the release of new Battlefield and Titanfall games will boost revenues.
According to the Zacks analyst, though assets under management growth currently remains muted, its solid business model, strong distribution platform and cost control should support growth.
The Zacks analyst thinks margin pressure will continue to persist as Schwab's business model is highly sensitive to interest rates.
The Zacks analyst believes that the impressive business model of National Oilwell has resulted in the narrower-than-expected loss in second-quarter 2016.
Freeport's Q2 loss was wider than expected. The covering analyst thinks that aggressive cost reduction actions will help the company stay afloat amid a still weak copper pricing environment.
The Zacks analyst thinks Q2 results reflect strength across all merchandise divisions, reduced expenses, improved margins and enhanced digital operations.
Seagate provided an optimistic earnings outlook for FY17, which encourages the Zacks analyst.
The covering analyst thinks higher digital sales and the release of new Battlefield and Titanfall games will boost revenues.
According to the Zacks analyst, though assets under management growth currently remains muted, its solid business model, strong distribution platform and cost control should support growth.
The Zacks analyst thinks margin pressure will continue to persist as Schwab's business model is highly sensitive to interest rates.
New Upgrades/h6
GW Pharma's Q3 results were good with the company reporting narrower-than-expected loss. The Zacks analyst thinks the company's progress with its lead pipeline candidate Epidiolex, is encouraging.
The covering analyst believes that Devon Energy's consistent efforts in divesting its non-core assets, along with cost-saving initiatives, will aid its cash flows.
The Zacks analyst thinks sustained focus on price optimization, inventory management, merchandise planning and private label offering act as catalysts for its positive earnings surprise streak.
GW Pharma's Q3 results were good with the company reporting narrower-than-expected loss. The Zacks analyst thinks the company's progress with its lead pipeline candidate Epidiolex, is encouraging.
The covering analyst believes that Devon Energy's consistent efforts in divesting its non-core assets, along with cost-saving initiatives, will aid its cash flows.
The Zacks analyst thinks sustained focus on price optimization, inventory management, merchandise planning and private label offering act as catalysts for its positive earnings surprise streak.
New Downgrades/h6
Perrigo's Q2 results were disappointing with the company missing on earnings and surpassing revenues slightly. The Zacks analyst believes that the lowered outlook for 2016 is reason for concern.
Despite the earnings beat, the covering analyst thinks that any appreciable fall in the tenants' abilities to pay base rent will negatively impact its operating results.
The Zacks analyst thinks that the entry of generics, pricing pressure for some of its drugs and volatile business environment in the diabetes care business will adversely impact the top line.
Perrigo's Q2 results were disappointing with the company missing on earnings and surpassing revenues slightly. The Zacks analyst believes that the lowered outlook for 2016 is reason for concern.
Despite the earnings beat, the covering analyst thinks that any appreciable fall in the tenants' abilities to pay base rent will negatively impact its operating results.
The Zacks analyst thinks that the entry of generics, pricing pressure for some of its drugs and volatile business environment in the diabetes care business will adversely impact the top line.
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