Top Analyst Reports For Goldman Sachs, Abbott & Altria
Zacks Investment Research | Apr 20, 2018 02:51AM ET
Friday, April 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 Goldman Sachs (GS), Abbott Labs (ABT) and Altria (MO). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Strong Buy-ranked Goldman Sachs’ shares have gained +5% in the past six months, underperforming the +13.1% gain of the Zacks Investment Banking industry. However, the company boasts an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters.
The company’s first-quarter 2018 results witnessed top-line strength. Strong trading activities on high volatility supported the bottom-line numbers. Though regulatory issues are concerns, the Zacks analyst thinks the company’s well-diversified business and focus to capitalize on growth opportunities through strategic moves will continue to strengthen the overall business.
Its cost-control measures are commendable. Additionally, the company’s steady capital-deployment activities have boosted investors' confidence.
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Shares of Buy-ranked Abbott Labs have gained +6.8% over the last six months, outperforming the Zacks Medical Products industry, which has gained +2.8% over the same period. Post a better-than-expected result by Abbott in the first quarter 2018; the Zacks analyst is upbeat about the strong and consistent EPD and Medical Devices performance by the company. Also, solid contributions from Diagnostics and Nutrition business are encouraging.
Within Structural Heart, strong uptake of MitraClip therapy post the national reimbursement approval in Japan also buoys optimism. Abbott continues to benefit from a strong integration synergy of St. Jude Medical. Abbott’s Alere buyout is another positive. Synergies from this consolidation in the form of revenues from Rapid Diagnostics have been driving the company’s growth.
Meanwhile, the company’s emerging market performance has been extremely promising on several strategic developments. On the flip side, sluggish pediatric vascular business in the United States continues to dent growth.
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Altria’s shares have outperformed the Zacks Tobacco industry in the last three months (-18.9% vs. -21.8%), aided by expansion in the smokeless products category. Rising health consciousness and stern government regulations to curb tobacco consumption has been hurting cigarette volumes and denting Altria’s top line for quite some time. Also, the likelihood of these concerns lingering is evident from investors' bearish stance on the stock. Moreover, Altria's Wine category remains sluggish due to stiff competition.
Nevertheless, Altria has been progressing well with expansion in the smokeless products category. This fueled its smokeless product revenue in fourth-quarter 2017, wherein earnings kept its stellar year-over-year growth trend intact. Results were backed by solid pricing, higher OCI and lower tax rates.
Investments in key growth areas, efforts to lift Marlboro’s share and expected gains from tax reforms led to a robust earnings view. However, estimates have dropped lately ahead of Altria's earnings release.
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Other noteworthy reports we are featuring today include PayPal (PYPL), Kinder Morgan (NYSE:KMI) and Progressive Corp (PGR).
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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
Today's Must Read/h6
Featured Reports/h6
Per the Zacks analyst, Alkermes' strong product portfolio and pipeline progress have been impressive amidst stiff competition.
Kinder Morgan generates majority of its cash flow from stable fee-based contracts. However, the Zacks Analyst believes that weak balance and Trans Mountain Expansion Project is an overhang.
The Zacks analyst likes the company's efforts to reward shareholders. Robust intermodal revenues are encouraging too.
Per a Zacks analyst, Companhia Siderurgica Nacional is poised to gain in 2018 from 1.8% hike in global steel demand and strengthening automotive, construction and capital goods sector of Brazil.
Per the Zacks analyst, the company's revenue has increased from past many years led by organic & inorganic growth.
Per the Zacks analyst, CenterPoint Energy's robust investment plans through 2018-2022 should enable the company to achieve its targets.
Per the Zacks analyst, competitive market rates and a compelling multi-product portfolio will continue to fuel premium growth for Progressive.
Per the Zacks analyst, Alkermes' strong product portfolio and pipeline progress have been impressive amidst stiff competition.
Kinder Morgan generates majority of its cash flow from stable fee-based contracts. However, the Zacks Analyst believes that weak balance and Trans Mountain Expansion Project is an overhang.
The Zacks analyst likes the company's efforts to reward shareholders. Robust intermodal revenues are encouraging too.
Per a Zacks analyst, Companhia Siderurgica Nacional is poised to gain in 2018 from 1.8% hike in global steel demand and strengthening automotive, construction and capital goods sector of Brazil.
Per the Zacks analyst, the company's revenue has increased from past many years led by organic & inorganic growth.
Per the Zacks analyst, CenterPoint Energy's robust investment plans through 2018-2022 should enable the company to achieve its targets.
Per the Zacks analyst, competitive market rates and a compelling multi-product portfolio will continue to fuel premium growth for Progressive.
New Upgrades/h6
The Zacks analyst believes that Interactive Brokers' increased focus on strengthening Electronic Brokerage segment and restructuring efforts will go a long way in supporting its profitability.
Per the Zacks analyst, Comerica's focus on driving long-term efficiency through GEAR Up initiatives is encouraging. Also, rising interest rates and lower tax rates will further support its financials.
Per the Zacks analyst, focus on initiating new business against the backdrop of macroeconomic headwinds should bolster Northern Trust's revenues. Moreover, its diversified products are a tailwind.
The Zacks analyst believes that Interactive Brokers' increased focus on strengthening Electronic Brokerage segment and restructuring efforts will go a long way in supporting its profitability.
Per the Zacks analyst, Comerica's focus on driving long-term efficiency through GEAR Up initiatives is encouraging. Also, rising interest rates and lower tax rates will further support its financials.
Per the Zacks analyst, focus on initiating new business against the backdrop of macroeconomic headwinds should bolster Northern Trust's revenues. Moreover, its diversified products are a tailwind.
New Downgrades/h6
Per the Zacks analyst, Apogee's results will be hurt by lower margins from EFCO acquisition. Further, recent tariffs on aluminum and steel prices remain a headwind for the company.
Rising raw material costs as well as labor costs may dampen NVR's growth prospects. Again, high mortgage rates may dilute the demand for new homes, per the Zacks analyst.
Per the Zacks analyst, PayPal's revenue is likely to hurt by eBay's selection of Adyen as its new primary payment processor and ending its long term partnership with PayPal.
Per the Zacks analyst, Apogee's results will be hurt by lower margins from EFCO acquisition. Further, recent tariffs on aluminum and steel prices remain a headwind for the company.
Rising raw material costs as well as labor costs may dampen NVR's growth prospects. Again, high mortgage rates may dilute the demand for new homes, per the Zacks analyst.
Per the Zacks analyst, PayPal's revenue is likely to hurt by eBay's selection of Adyen as its new primary payment processor and ending its long term partnership with PayPal.
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