Top Analyst Reports For United Technologies, PayPal & ConocoPhillips
Zacks Investment Research | Jun 11, 2018 11:20PM ET
Tuesday, June 12, 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 United Technologies (UTX), PayPal (PYPL) and ConocoPhillips (NYSE:COP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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United Technologies’ shares have gained +6.8% in the last year, outperforming the Zacks Diversified Operations industry, which has lost -14% over the same period. United Technologies serves various end-markets. The Zacks analyst thinks that this allows it to remain profitable even during tough economic times.
The company has offered bullish guidance for 2018 on healthy demand trends and is likely to deliver sustainable earnings growth in future with Rockwell merger. United Technologies remains focused on four key priorities: flawless execution, innovation, structural cost reduction and disciplined capital allocation to fuel its growth engine. However, fluctuations in foreign currency exchange rates may affect the company’s bottom-line growth.
In addition, a disruption in deliveries from suppliers, capacity constraints, production disruptions, price changes or decreased availability of raw materials or commodities is likely to have an adverse effect on the company’s ability to meet delivery schedules, thereby increasing its operating costs.
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Shares of PayPal have outperformed the Zacks Internet Software industry over the last year (+61.1% vs. +35%). PayPal continues to benefit from its ongoing strategic partnerships as well as new partnerships with CaixaBank, Bankia, HSBC and Barclays (LON:BARC) Bank, which remain positive for its improving customer base.
Additionally, the introduction of new services and offers for the debit and credit card users are helping it to attract new customers to the platform. The Zacks analyst thinks an expanding product & services portfolio and strengthening presence in global market will continue to benefit the company’s total payment volume.
Further, a new agreement with eBay will make PayPal the former’s payment partner, which will help the company to recover what it had lost from the discontinuation of the previous partnership between the two companies. However, continuous exposure to foreign exchange and interest rate risks are major concerns. Also, intensifying competition from major players in the market remains a headwind.
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ConocoPhillips’ shares are up +51.8% over the last year, outperforming the Zacks U.S. Integrated Oil industry, which has gained +38.3% over the same period. As oil prices continue to improve, ConocoPhillips gains from more oil production in the Eagle Ford and Bakken as well as concentrating on high-margin production region.
Significant opportunities are left for ConocoPhillips in the Eagle Ford where it owns 3,400 undrilled locations that could lend access to almost 2.3 billion barrels of oil equivalent estimated potential reserves. However, the Zacks analyst is cautious about ConocoPhillips’ expectations of a rise in production and operating expenses.
For 2018, the firm projects production and operating expenses at $5.7 billion, higher than $5.2 billion for 2017. Moreover, ConocoPhillips’ long-term debt is more than double its cash balance, which is a concern.
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Other noteworthy reports we are featuring today include Anthem (ANTM), Raytheon (RTN) and Tesla (NASDAQ:TSLA).
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Mark Vickery
Senior Editor
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, Anthem is set to grow as strategic acquisitions, rollouts of health insurance exchanges and national accounts in the commercial segment and Medicaid expansion drive memberships.
Per the Zacks analyst, rise in deliveries of powerpacks across the world will help Tesla's Energy & Storage unit to drive sales and also attain its aim to triple energy storage deployments in 2018.
Per the Zacks analyst, Lincoln National is set to grow on the back of sturdy Life Insurance business which is backed by solid new business and product enhancements boosting sales and profitability.
The Zacks analyst likes the company's fleet modernization efforts. Initiatives to expand further are also encouraging.
Per the Zacks analyst, Guess? is likely to keep gaining from solid Europe and Asia sales, which are expected to rise in double-digits in Q2.
Per the Zacks analyst, PVH Corp.'s performance is expected to soar higher backed by robust brand strength and improvement in foreign currency rates.
Per the Zacks analyst, Envision Healthcare should gain from cost savings from labor cost management and divestiture of non-core business.
Per the Zacks analyst, Anthem is set to grow as strategic acquisitions, rollouts of health insurance exchanges and national accounts in the commercial segment and Medicaid expansion drive memberships.
Per the Zacks analyst, rise in deliveries of powerpacks across the world will help Tesla's Energy & Storage unit to drive sales and also attain its aim to triple energy storage deployments in 2018.
Per the Zacks analyst, Lincoln National is set to grow on the back of sturdy Life Insurance business which is backed by solid new business and product enhancements boosting sales and profitability.
The Zacks analyst likes the company's fleet modernization efforts. Initiatives to expand further are also encouraging.
Per the Zacks analyst, Guess? is likely to keep gaining from solid Europe and Asia sales, which are expected to rise in double-digits in Q2.
Per the Zacks analyst, PVH Corp.'s performance is expected to soar higher backed by robust brand strength and improvement in foreign currency rates.
Per the Zacks analyst, Envision Healthcare should gain from cost savings from labor cost management and divestiture of non-core business.
New Upgrades/h6
The Zacks analyst believes Exelon's plans to invest nearly $21 billion over 2018-2021 time period and cost management initiatives will help to cut down expenses and boost performance.
Per the Zacks analyst, Methanex is well placed to gain from strong methanol demand. The Louisiana project will also create significant value for its shareholders.
Per the Zacks analyst, Foreign Military contracts drive Raytheon's growth due to rising demand from Europe and the Asia Pacific. It also invests consistently in next-generation sensor technologies.
The Zacks analyst believes Exelon's plans to invest nearly $21 billion over 2018-2021 time period and cost management initiatives will help to cut down expenses and boost performance.
Per the Zacks analyst, Methanex is well placed to gain from strong methanol demand. The Louisiana project will also create significant value for its shareholders.
Per the Zacks analyst, Foreign Military contracts drive Raytheon's growth due to rising demand from Europe and the Asia Pacific. It also invests consistently in next-generation sensor technologies.
New Downgrades/h6
The Zacks analyst informs that AstraZeneca's core products like Nexium, Crestor and Seroquel are facing generic competition which is hurting sales. Sales in the diabetes franchise are declining.
Per the Zacks analyst, escalating operating expenses, due to higher debt and integration expenses and compensation and benefits costs, will continue to hurt Intercontinental Exchange's overall growth.
Per the Zacks analyst, Affiliated Managers' use of high debt is likely to hurt its financials as it restricts the company from procuring additional finance for working capital and other purposes.
The Zacks analyst informs that AstraZeneca's core products like Nexium, Crestor and Seroquel are facing generic competition which is hurting sales. Sales in the diabetes franchise are declining.
Per the Zacks analyst, escalating operating expenses, due to higher debt and integration expenses and compensation and benefits costs, will continue to hurt Intercontinental Exchange's overall growth.
Per the Zacks analyst, Affiliated Managers' use of high debt is likely to hurt its financials as it restricts the company from procuring additional finance for working capital and other purposes.
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