Top Research Reports For 29th November, 2016
Zacks Investment Research | Nov 29, 2016 01:06AM ET
Tuesday, November 29 2016
Today's Research Daily features new research reports on 16 major stocks, including UnitedHealth (UNH), 21st Century Fox (FOXA) and Sanofi (PA:SASY) (SNY).
UnitedHealth shares have gained more than 29% year-to-date, outperforming the medical health maintenance organization industry by a wide margin. UnitedHealth issued optimistic guidance for 2017, backed by stable medical costs, higher contribution from Optum and decline in exposure from its public exchange business. The analyst stresses that the company is consistently gaining from the Medicaid and Medicare businesses. Continued growth at Optum is also leading to a diversified revenue source. The segment should see further growth from the Catamaran acquisition. Also, UnitedHealth should benefit from its capital strength, niche market position and a track record of returning excess cash to shareholders through dividend hikes and share buybacks. But industry fees and taxes, losses on public exchange business and overall uncertainty about the fate of ObamaCare are some of the headwinds. (You can )
21st Century Fox shares have lagged the consumer discretionary sector and the broader market in the year-to-date period, but they have performed better than the movie/TV production distribution industry. Twenty-First Century Fox posted its second straight positive earnings surprise, when it reported first-quarter fiscal 2017 results. The analyst likes its strong cable network programming, which has been its driving force, backed by rising affiliate fees. However, increase in programming costs and fluctuation in foreign currency exchange rate continues to act as a headwind for Twenty-First Century Fox. Further, it expects costs at its cable network to go up in fiscal 2017. Increase in expenses may dent the company’s margins and in turn the bottom line. (You can )
Shares of French drug giant Sanofi have lagged the broader market in the year-to-date period, though they have done better than the peer large-cap pharma group on the back of strong quarterly results. The analyst likes the company’s focus on streamlining its business and pursuing business development deals. Further, products like Toujeo, Aubagio and Lemtrada are likely to do well. However, Sanofi’s Diabetes franchise is under significant pressure with key product Lantus, facing increasing competitive pressure at the payer level and biosimilar competition in several European markets & Japan. Sanofi’s outlook for its Diabetes franchise over the 2015–2018 timeframe is also bleak. Other headwinds include generic competition and slower-than-expected uptake of new products like Praluent. (You can )
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Other noteworthy reports we are featuring today include MasterCard (MA), Horizon (HZNP) and Barclays (LON:BARC) (BCS).
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Today's Must Read/h6
Featured Reports/h6
The Zacks analyst thinks Barclays' efforts to streamline and simplify operations will lead to fall in expenses, thereby supporting profitability.
According to the covering analyst, Kellogg's cost cutting initiatives have been supporting margins.
The covering analyst thinks Tyson's continuous innovation & geographic diversity helps maintain its dominance in the meat industry.
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The Zacks analyst believes that Helmerich & Payne's Q4 outperformance reflects its successful expense management and strong execution.
The covering analyst thinks the divestiture of the Malaysia business will help Groupon to focus on its core local business in the long run.
The Zacks analyst thinks Barclays' efforts to streamline and simplify operations will lead to fall in expenses, thereby supporting profitability.
According to the covering analyst, Kellogg's cost cutting initiatives have been supporting margins.
The covering analyst thinks Tyson's continuous innovation & geographic diversity helps maintain its dominance in the meat industry.
The Zacks analyst appreciates the company's constant efforts to expand Maven service and collaboration with Uber. GM Company Store in Renaissance Center will also be beneficial for the company.
Though concerned about the dismal October traffic data, the covering analyst appreciates the company's constant efforts to introduce new products.
The Zacks analyst believes that Helmerich & Payne's Q4 outperformance reflects its successful expense management and strong execution.
The covering analyst thinks the divestiture of the Malaysia business will help Groupon to focus on its core local business in the long run.
New Upgrades/h6
The Zacks analyst remains optimistic about growth prospects of MasterCard given its digital & expansion moves. Also, it will gain from the secular shift to electronic payments from paper-based forms.
The covering analyst believes that Valero's diversified asset base led it to comfortably outperform the oil refining and marketing sector over the last three months.
Parker-Hannifin's upgraded WIN strategy and diligent simplification initiatives have been boosting its margins. Going forward, impressive MRO and CAPEX markets are expected to stoke growth.
The Zacks analyst remains optimistic about growth prospects of MasterCard given its digital & expansion moves. Also, it will gain from the secular shift to electronic payments from paper-based forms.
The covering analyst believes that Valero's diversified asset base led it to comfortably outperform the oil refining and marketing sector over the last three months.
Parker-Hannifin's upgraded WIN strategy and diligent simplification initiatives have been boosting its margins. Going forward, impressive MRO and CAPEX markets are expected to stoke growth.
New Downgrades/h6
The Zacks analyst believes despite Ferrellgas' focus on midstream operation, loss of its largest customer and warmer than normal start to the winter propane season will adversely impact performance
The covering analyst thinks CNO Financial continues to face underwriting and pricing challenges, high expenses, small market share in some lines; cessation of share buyback is another negative.
The Zacks analyst believes that Horizon could come under the spotlight for drug pricing issues.
The Zacks analyst believes despite Ferrellgas' focus on midstream operation, loss of its largest customer and warmer than normal start to the winter propane season will adversely impact performance
The covering analyst thinks CNO Financial continues to face underwriting and pricing challenges, high expenses, small market share in some lines; cessation of share buyback is another negative.
The Zacks analyst believes that Horizon could come under the spotlight for drug pricing issues.
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