New Research Reports For Microsoft, Caterpillar & Thermo Fisher
Zacks Investment Research | Oct 13, 2016 01:06AM ET
Thursday, October 13, 2016
We are featuring 16 new research reports in today's Research Daily, including analyst-written reports on buy-rated Caterpillar (NYSE:CAT), Microsoft (NASDAQ:MSFT) and Thermo Fisher (TMO).
Caterpillar shares have struggled over the last few years as a result of the commodity bust and weak global spending on infrastructure and construction. But after bottoming earlier this year, the stock has had an impressive run up (up more than 28% year-to-date), with improving outlook for construction activities and management efforts to improve efficiencies and squeeze costs out of operations finally getting acknowledged. While the outlook for mining continues to be problematic, the construction has started showing signs of life, as recent data from the Asia Pacific region show. This is starting to show up in rising EPS estimates for this buy-rated stock. (You can )
Microsoft shares have lagged the Tech sector and the broader market this year (the stock is up about 3% year-to-date), given continued headwinds in the PC space that has weighed on the Windows 10 adoption rates. But the company's efforts to reorganize and reposition its businesses hold long-term promise. Microsoft's cloud opportunity particularly stands out, with the company appearing to be emerging as a leader in this fast-growing space, alongside Amazon (NASDAQ:AMZN), Google's parent Alphabet (NASDAQ:GOOGL) and others. The Zacks analyst also likes buy-rated Microsoft's enterprise strength, the Office 365 subscription model, Azure and promising new products in the augmented and virtual reality space. (You can )
Thermo Fisher shares have outperformed the broader medical sector (up more than 8% year-to-date), with the recently completed FEI Company acquisition expected to significantly facilitate the company’s performance in life-science research. The FEI acquisition followed the successful purchase and integration of Affimetrix that boosted the buy-rated Thermo Fisher's offerings in the fast-growing flow cytometry market. Fresh product launches, strong growth in emerging markets and an enhancement in the company’s customer value proposition are other positives. (You can )
Other noteworthy reports we are featuring today include Alcoa (NYSE:AA), Baxter (BAX) and PNC Financial (NYSE:PNC).
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Sheraz Mian
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Today's Must Read/h6
Featured Reports/h6
Alcoa missed earnings and sales estimates in Q3 as it faced pricing headwinds. While pricing remains a concern, Alcoa should gain from productivity actions and contract wins, per the Zacks analyst.
Stanley Black & Decker's acquisition of Newell Tools will prove earnings accretive from year one of deal-closing. Annual cost synergies of $80-$90 million will be realized by year three.
The covering analyst thinks Gibraltar Industries is poised to grow on the $25 million Nexus buyout and value-creating growth strategy.
The Zacks analyst believes that Principal Financial's exposure to low interest rate environment will continue to weigh on investment results, while rising expenses will raise concern.
The covering analyst thinks the proposed acquisition of American Capital by Ares Capital may enhance shareholders' value given the steady dividend and the fee waiver support offered by Ares Capital.
The Zacks analyst believes Edison boasts a solid financial position backed by strong cash generation capacity.
The covering analyst thinks PNC Financial's efforts to improve operational efficiencies will go a long way in supporting bottom line amid slow revenue growth.
Alcoa missed earnings and sales estimates in Q3 as it faced pricing headwinds. While pricing remains a concern, Alcoa should gain from productivity actions and contract wins, per the Zacks analyst.
Stanley Black & Decker's acquisition of Newell Tools will prove earnings accretive from year one of deal-closing. Annual cost synergies of $80-$90 million will be realized by year three.
The covering analyst thinks Gibraltar Industries is poised to grow on the $25 million Nexus buyout and value-creating growth strategy.
The Zacks analyst believes that Principal Financial's exposure to low interest rate environment will continue to weigh on investment results, while rising expenses will raise concern.
The covering analyst thinks the proposed acquisition of American Capital by Ares Capital may enhance shareholders' value given the steady dividend and the fee waiver support offered by Ares Capital.
The Zacks analyst believes Edison boasts a solid financial position backed by strong cash generation capacity.
The covering analyst thinks PNC Financial's efforts to improve operational efficiencies will go a long way in supporting bottom line amid slow revenue growth.
New Upgrades/h6
The Zacks analyst believes that Windstream's plans to strengthen its fixed wireless networks services by upgrading it with millimeter wave radio technology bodes well for its expansion efforts
The covering analyst believes that Lincoln National's continuous efforts to change its business mix toward more Life products without long-term guarantees ensures higher profitability in long term.
The Zacks analyst believes that Baxter is gaining prominence with a series of notable developments that include the launch of NUMETA 13E in Europe and the strategic tie-up with Satellite Healthcare.
The Zacks analyst believes that Windstream's plans to strengthen its fixed wireless networks services by upgrading it with millimeter wave radio technology bodes well for its expansion efforts
The covering analyst believes that Lincoln National's continuous efforts to change its business mix toward more Life products without long-term guarantees ensures higher profitability in long term.
The Zacks analyst believes that Baxter is gaining prominence with a series of notable developments that include the launch of NUMETA 13E in Europe and the strategic tie-up with Satellite Healthcare.
New Downgrades/h6
Rent-A-Center disappointed investors with its bleak preliminary guidance for third-quarter 2016. The company now expects Core U.S. same store sales to be down nearly 12% in the quarter.
The Zacks analyst thinks weaker capital spending, sluggish oil & gas markets with risks in retail refrigeration business will hurt Dover's results. The Wayne buyout related investigation is a worry.
The covering analyst thinks cost of compliance to stringent regulations and related penalties remain a major concern for PG&E Corp. Changes in environmental mandates might also hurt its performance.
Rent-A-Center disappointed investors with its bleak preliminary guidance for third-quarter 2016. The company now expects Core U.S. same store sales to be down nearly 12% in the quarter.
The Zacks analyst thinks weaker capital spending, sluggish oil & gas markets with risks in retail refrigeration business will hurt Dover's results. The Wayne buyout related investigation is a worry.
The covering analyst thinks cost of compliance to stringent regulations and related penalties remain a major concern for PG&E Corp. Changes in environmental mandates might also hurt its performance.
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