New Research Reports For GE, McDonald's & GSK
Zacks Investment Research | Sep 26, 2016 11:45PM ET
Tuesday, September 27, 2016
Stocks started the Tuesday session modestly in the green after two down sessions, with many seeing the tightening presidential election as adding to market uncertainty. Oil, gold, the U.S. dollar and the 10-year Treasury bond yield lost ground in the morning, with the oil pullback likely indicating the market's skepticism of OPEC's ability to come out with anything meaningful in tomorrow's meeting in Algiers. On the data front, this morning's July Case-Shiller home price index showed +5.1% increase, which follows the prior-month's +5% gain.
We are featuring 16 research reports on major stocks in today's Research Daily, including General Electric (NYSE:GE), GlaxoSmithKline (GSK) and McDonald’s (MCD).
Buy rated General Electric shares have lagged the market this year on concerns about the conglomerate's order backlog and continued weakness in the energy end-market. This issue notwithstanding, the company has done an excellent job of its plan to reduce its exposure to finance and get back to its industrial and engineering roots. To that end, it is enjoying strong momentum in the power and aviation end markets, partly offset by continued weakness in the energy space. A track record of returning excess cash to shareholders through buybacks and dividends (dividend yields an attractive 3.1%) are some of the other positives in the GE story. (You can )
GlaxoSmithKline shares have gained more than 7% year-to-date, outperforming many of its large-cap pharma peers. The buy rated stock is positioned to deliver strong core earnings growth on the back of performance momentum in its new products as well as those acquired from Novartis. These should help support revenues and ease the impact of the loss of Advair sales. Glaxo’s efforts to develop its pipeline are also encouraging. Moreover, steps to increase cost efficiency and its outlook for the next five years bode well. You can )
McDonald’s shares have been weak lately on soft industry trends, macroeconomic concerns in various parts of the world along with negative currency translation issues. However, the analyst likes the manner in which McDonald’s has turned itself around in the domestic market like menu innovation, introduction of value meals, efficient marketing and promotions, and improved service. (You can >>)
Other noteworthy reports we are featuring today include Caterpillar (NYSE:CAT), 3M (MMM) and Medtronic (NYSE:MDT).
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Sheraz Mian
Director of Research
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Today's Must Read/h6
Featured Reports/h6
According to the covering analyst, Sunoco Logistics' acquisition of Vitol's crude oil unit in Permian Basin will expand its footprint in a region that is profitable even at current low prices.
The Zacks analyst upgraded AAR Corp to Strong Buy buoyed by its better-than-expected fiscal first 2017 quarter results.
The acquisition of BOCO is expected to strengthen Magna International's product portfolio, boost its revenues and enhance its engineering capabilities in key regions, per the Zacks analyst.
The Zacks analyst believes that despite the recent cyberattack, Akamai's leading position in the CDN space along with growing cloud demand augur well.
The Zacks analyst believes that Torchmark's robust capital management strategy will enable the company to return more value to its shareholders.
The Zacks analyst thinks the recent Neurosurgery product launch is a part of the effort to capture the vast market of brain therapies.
The Zacks analyst believes that strength in the industrial, auto and communication markets is largely offset by significant weakness in the consumer business.
According to the covering analyst, Sunoco Logistics' acquisition of Vitol's crude oil unit in Permian Basin will expand its footprint in a region that is profitable even at current low prices.
The Zacks analyst upgraded AAR Corp to Strong Buy buoyed by its better-than-expected fiscal first 2017 quarter results.
The acquisition of BOCO is expected to strengthen Magna International's product portfolio, boost its revenues and enhance its engineering capabilities in key regions, per the Zacks analyst.
The Zacks analyst believes that despite the recent cyberattack, Akamai's leading position in the CDN space along with growing cloud demand augur well.
The Zacks analyst believes that Torchmark's robust capital management strategy will enable the company to return more value to its shareholders.
The Zacks analyst thinks the recent Neurosurgery product launch is a part of the effort to capture the vast market of brain therapies.
The Zacks analyst believes that strength in the industrial, auto and communication markets is largely offset by significant weakness in the consumer business.
New Upgrades/h6
The Zacks analyst believes that Southern Company's $12 billion acquisition of AGL Resources (NYSE:GAS) has significantly increased its customer base and is expected to help generate more revenues.
Caterpillar's Aug sales reveal a steady improvement in Asia Pacific construction. The covering analyst thinks this development along with its improved restructuring actions, bodes well for the behemoth.
The Zacks analyst thinks Edison's strong portfolio of regulated utility assets allows it to present a lower risk profile. Its solid financial position is backed by strong cash generation capacity.
The Zacks analyst believes that Southern Company's $12 billion acquisition of AGL Resources (NYSE:GAS) has significantly increased its customer base and is expected to help generate more revenues.
Caterpillar's Aug sales reveal a steady improvement in Asia Pacific construction. The covering analyst thinks this development along with its improved restructuring actions, bodes well for the behemoth.
The Zacks analyst thinks Edison's strong portfolio of regulated utility assets allows it to present a lower risk profile. Its solid financial position is backed by strong cash generation capacity.
New Downgrades/h6
The Zacks analyst believes Vertex's Orkambi guidance for 2016 is short of expectations due to slower than expected launch in Germany. Also worrying is its dependence on the CF franchise for growth.
A sustained strength in the U.S. dollar will likely continue to negatively impact the earnings in the short-term. In addition, the company is susceptible to high commodity price risks.
The Zacks analyst thinks T. Rowe Price's planned initiatives will weigh on expense base. Also, amid the low rate environment, fee waivers in its money market mutual funds hurts revenue growth.
The Zacks analyst believes Vertex's Orkambi guidance for 2016 is short of expectations due to slower than expected launch in Germany. Also worrying is its dependence on the CF franchise for growth.
A sustained strength in the U.S. dollar will likely continue to negatively impact the earnings in the short-term. In addition, the company is susceptible to high commodity price risks.
The Zacks analyst thinks T. Rowe Price's planned initiatives will weigh on expense base. Also, amid the low rate environment, fee waivers in its money market mutual funds hurts revenue growth.
Zacks Investment Research
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