Top Research Reports For 1st September, 2016
Zacks Investment Research | Aug 31, 2016 10:13PM ET
Thursday, September 1, 2016
Today's must-read reports are for Sony (SNE), McDonald’s (MCD) and Nike's (NYSE:NKE).
McDonald’s shares have not been having a good time of late (the stock is down 2.3% year-to-date) on growth concerns as higher labor costs along with currency headwinds weigh on earnings outlook. But the analyst likes the fact that McDonald’s has turned itself around in the domestic market, mainly driven by its successful all-day Breakfast platform. Notably, the company enjoys moderate growth prospects through its exposure in the under-penetrated international markets. The analyst discusses the pros & cons of investing in McDonald's (NYSE:MCD) shares at this stage in the updated research report published today. (You can here>> )
Nike shares have improved over the last few weeks, but the stock has lagged the broader market this year on growing competition in the space from Under Armour and Adidas (DE:ADSGN). While a strong performer from the bottom line perspective, Nike’s top line has been missing estimates for quite some time due to adverse currency movements. Evidently, the company expects lingering currency woes to hurt revenues in first-half fiscal 2017. However, the analyst likes Nike’s customer-centric approach, innovative products and strong portfolio. This, along with the desire for increasing its global footprint, popularity and market share demonstrates its growth appetite. (You can here>> )
Shares of Sony have surged more than 30% year-to-date, on greater appreciation for the company's restructuring activities and cost-reduction initiatives and favorable trends in PS4 hardware and software sales. In addition, Sony’s recent acquisitions, including the TEN Sports Network buy, are expected to drive significant inorganic growth. In the fresh research report issued today, the analyst discusses the case for and against investing in Sony shares, including the potential impact of the Kumamoto earthquake on the company's financials. (You can . )
Other noteworthy reports we are featuring today include BP plc (LON:BP), Weyerhaeuser (WY) and Hershey (HSE).
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Today's Must Read/h6
Featured Reports/h6
Weyerhaeuser's disposition of its Liquid Packaging Facility to Nippon is part of the company's strategic decision to shift focus to its core timber, land, and forest products business.
Hershey beat estimates for earnings and sales in Q2 as favorable timing of shipments boosted sales in North America, believes the Zacks analyst.
The Zacks analyst expects Capital One's revenue will continue to benefit from loan growth and improving economy.
The covering analyst believes that increasing debt burden causing a spike in interest expense, exposure to foreign exchange and increasing competition will limit the company's growth
The Zacks analyst thinks Kroger's operational strategies present enormous opportunities to augment identical supermarket sales, improve operating margin and enhance return on invested capital.
The covering analyst believes BP's cost cutting plan to cope with the weak commodity prices is a positive.
The Zacks analyst thinks Suncor's prospects have improved after the company increased its stake in the Syncrude oilsands project.
Weyerhaeuser's disposition of its Liquid Packaging Facility to Nippon is part of the company's strategic decision to shift focus to its core timber, land, and forest products business.
Hershey beat estimates for earnings and sales in Q2 as favorable timing of shipments boosted sales in North America, believes the Zacks analyst.
The Zacks analyst expects Capital One's revenue will continue to benefit from loan growth and improving economy.
The covering analyst believes that increasing debt burden causing a spike in interest expense, exposure to foreign exchange and increasing competition will limit the company's growth
The Zacks analyst thinks Kroger's operational strategies present enormous opportunities to augment identical supermarket sales, improve operating margin and enhance return on invested capital.
The covering analyst believes BP's cost cutting plan to cope with the weak commodity prices is a positive.
The Zacks analyst thinks Suncor's prospects have improved after the company increased its stake in the Syncrude oilsands project.
New Upgrades/h6
Palo Alto Networks reported mixed fourth-quarter fiscal 2016 results wherein the top line surpassed the Zacks Consensus Estimate but the bottom line result misses the same.
The Zacks analyst thinks Estee Lauder's aggressive marketing investments and product innovation bode well. The growing prestige beauty and travel retail categories will boost top line going forward.
The covering analyst believes that BCE Inc.'s subsidiary, Bell Canada's recently launched Home Hub 3000 WiFi services in Canada will be a significant growth driver for its Fibe TV service
Palo Alto Networks reported mixed fourth-quarter fiscal 2016 results wherein the top line surpassed the Zacks Consensus Estimate but the bottom line result misses the same.
The Zacks analyst thinks Estee Lauder's aggressive marketing investments and product innovation bode well. The growing prestige beauty and travel retail categories will boost top line going forward.
The covering analyst believes that BCE Inc.'s subsidiary, Bell Canada's recently launched Home Hub 3000 WiFi services in Canada will be a significant growth driver for its Fibe TV service
New Downgrades/h6
H&R Block's fiscal first quarter suffered due to the divestiture of H&R Block Bank, though lower cost share count were partial offsets. Return volumes in the U.S. assisted tax business remained soft.
Cost headwinds related to opening new distribution centers and increasing the frequency of deliveries to stores are concerns, according to the Zacks analyst.
The covering analyst thinks that Roper's business is being affected due to weakness in its energy and industrial divisions in addition to delays in some important projects.
H&R Block's fiscal first quarter suffered due to the divestiture of H&R Block Bank, though lower cost share count were partial offsets. Return volumes in the U.S. assisted tax business remained soft.
Cost headwinds related to opening new distribution centers and increasing the frequency of deliveries to stores are concerns, according to the Zacks analyst.
The covering analyst thinks that Roper's business is being affected due to weakness in its energy and industrial divisions in addition to delays in some important projects.
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