Top Research Reports For Alphabet, Chevron & Raytheon
Zacks Investment Research | Apr 06, 2018 02:53AM ET
Friday, April 6, 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 Alphabet (NASDAQ:GOOGL), Chevron (CVX) and Raytheon (RTN). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see
Alphabet’s shares have outperformed the Zacks Internet Services industry in the last year (the stock is up +22.6% vs. +15.8% gain for the industry). The Zacks analyst likes its focus on innovation, AI, cloud, home automation space, strategic acquisitions and Android OS, which should continue to generate strong cash flows.
Alphabet has shown good execution to date, more or less maintaining its dominant share in a competitive, fast-growing search market. Its diversification strategy is also positive, but requires significant investment and involves uncertain payback periods, particularly since these efforts are at the cutting edge of technology.
However, increased spending on its consumer gadgets, YouTube video app and cloud computing services remain concerns. Also, increasing litigation issues could continue to impact the company’s profits.
(You can ).
Shares of Chevron have risen +7.8% in the last one year, underperforming the Zacks Integrated Oil industry's +10.1% increase, despite being a beneficiary of the recovery in commodity prices. In particular, the stock slumped more than 5% after missing fourth-quarter estimates badly.
Nevertheless, Chevron saw strong profit growth in its upstream unit on better price realizations. More importantly, Chevron was able to bolster its cash from operations - something investors really want right now. The improving cash position allowed the company to raise its dividend by almost 4%.
However, the Zacks analyst remains worried over disappointing earnings in Chevron's international refining business, while signs of headwind in the U.S. production pose additional risks. Hence, investors had best wait for a better entry point before buying shares in the oil major.
(You can ).
Raytheon’s shares have risen around +43.5% over the last one year, outperforming the Zacks Defense Equipment industry, which has increased +35.9% over the same period. Raytheon ended 2017 on a mixed note. While its fourth-quarter earnings figure comfortably surpassed expectations, the top-line number failed to meet the consensus estimate.
Get The News You Want
Year over year, tax reform had an adverse impact on bottom-line growth, whereas revenues saw an uptick. Raytheon is one of the best-positioned large-cap defense players due to its non-platform-centric focus. Thanks to its wide range of combat-proven defense products, the company continues to receive numerous orders from both Pentagon as well as foreign allies.
Moreover, the company is a strong cash generator, which allows it to pay attractive dividends to shareholders. On the flip side, factors like tough competition and political uncertainty continue to be major headwinds for Raytheon.
(You can ).
Other noteworthy reports we are featuring today include CME Group (CME), Chubb (NYSE:CB) and T. Rowe Price (TROW).
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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, while Jakafi's performance has been impressive all along and Olumiant is also likely to contribute in 2018, Incyte's dependence on Jakafi for growth is a concern.
Rising exploration costs are a concern, according to the Zacks analyst.
The Zacks analyst is impressed by the company's efforts to reward shareholders through dividends & buybacks.
Per the Zacks analyst, Lindsay's major projects like Road Zipper system deployment and Alex Fraser Bridge will drive growth despite rising costs due to its Foundation for Growth initiative.
Per a Zacks analyst, Nordson's buyouts, including Sonoscan and PCP product lines of Infiniti Dosing o.m.s. in January 2018, will solidify its product portfolio.
The Zacks analyst stresses that Dave & Buster's distinctive business with enhanced focus on the entertainment front helps it gain traction in a challenging U.S. restaurant space.
Per the Zacks analyst, debt free position with substantial liquidity has assisted in strengthening T. Rowe Price's capital leverage.
Per the Zacks analyst, while Jakafi's performance has been impressive all along and Olumiant is also likely to contribute in 2018, Incyte's dependence on Jakafi for growth is a concern.
Rising exploration costs are a concern, according to the Zacks analyst.
The Zacks analyst is impressed by the company's efforts to reward shareholders through dividends & buybacks.
Per the Zacks analyst, Lindsay's major projects like Road Zipper system deployment and Alex Fraser Bridge will drive growth despite rising costs due to its Foundation for Growth initiative.
Per a Zacks analyst, Nordson's buyouts, including Sonoscan and PCP product lines of Infiniti Dosing o.m.s. in January 2018, will solidify its product portfolio.
The Zacks analyst stresses that Dave & Buster's distinctive business with enhanced focus on the entertainment front helps it gain traction in a challenging U.S. restaurant space.
Per the Zacks analyst, debt free position with substantial liquidity has assisted in strengthening T. Rowe Price's capital leverage.
New Upgrades/h6
Per the Zacks analyst, Johnson Matthey's UK automotive battery business buyout will help Cummins to widen its electrified energy storage product range and become a global leader in electrified power.
Per the Zacks analyst, CME Group's focus on expansion of its derivative product lines will continue to contribute to top-line growth, thus boosting overall performance.
The Zacks analyst is bullish about Myriad Genetics seeing expanded reimbursement, growing new product volumes and solid global RNA kit revenues. The recent receipt of PMA in Japan buoys optimism.
Per the Zacks analyst, Johnson Matthey's UK automotive battery business buyout will help Cummins to widen its electrified energy storage product range and become a global leader in electrified power.
Per the Zacks analyst, CME Group's focus on expansion of its derivative product lines will continue to contribute to top-line growth, thus boosting overall performance.
The Zacks analyst is bullish about Myriad Genetics seeing expanded reimbursement, growing new product volumes and solid global RNA kit revenues. The recent receipt of PMA in Japan buoys optimism.
New Downgrades/h6
Per the Zacks analyst, Colgate is witnessing strained margins due to higher raw material and packaging costs, and advertising expenses. Higher advertising costs should hurt operating margins in 2018.
Per the Zacks analyst, higher spending on games and live services remains an overhang on EA's margins. Moreover, competition from Activision Blizzard (NASDAQ:ATVI) is a major headwind.
Per the Zacks analyst, exposure to catastrophe losses induces volatility in Chubb's underwriting profitability. The company estimates Q1 cat loss of about $305 million.
Per the Zacks analyst, Colgate is witnessing strained margins due to higher raw material and packaging costs, and advertising expenses. Higher advertising costs should hurt operating margins in 2018.
Per the Zacks analyst, higher spending on games and live services remains an overhang on EA's margins. Moreover, competition from Activision Blizzard (NASDAQ:ATVI) is a major headwind.
Per the Zacks analyst, exposure to catastrophe losses induces volatility in Chubb's underwriting profitability. The company estimates Q1 cat loss of about $305 million.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.