Top Research Reports For December 6, 2016
Zacks Investment Research | Dec 06, 2016 04:17AM ET
Tuesday, December 6 2016
Today's Research Daily features new research reports on 16 major stocks, including Johnson & Johnson (NYSE:JNJ) (JNJ), Wells Fargo (NYSE:WFC) (WFC) and Wal-Mart (NYSE:WMT) (WMT).
Johnson & Johnson shares have bucked the broader healthcare slump this year and are up almost 9% year-to-date. While the company is faced with a number of headwinds like unfavorable currency movements, increased competition from generics, pricing pressures and an uncertain global macroeconomic backdrop, the analyst believes that JNJ's diversified business model, deep product pipeline, lack of cyclicality and financial strength position it for continued momentum going forward.
We saw this in the company's Q3 earnings report when it beat on the top- and bottom-lines and provided favorable outlook. The analyst expects these trends to continue in the coming periods as well. (You can )
Wells Fargo has long maintained a reputation for disciplined and reliable operations and an attractive retail banking franchise. Recent quarterly results showing strong growth in loans and deposits reconfirm the bank's inherent strengths, but they have been totally offset lately by the sales practices controversy that has already cost the well regarded CEO his position.
The new management team is making all the right moves and further downside risks in the stock may be low at this stage (the stock is down only 0.1% year to date vs. a roughly 14.6% gain for the peer banks), but it will likely take a while for clouds to fully lifted. (You can .)
Wal-Mart’s shares have surpassed those of other supermarkets, gaining more than 14% year-to-date. Though the company is facing a number of headwinds, estimates and share price of Wal-Mart has been rising since the company reported its third-quarter fiscal 2017 results. Wal-Mart posted positive earnings streak for the fifth consecutive quarter, but top-line marginally fell short of expectations after surpassing the same in the preceding two quarters, possibly due to deflationary pressure hurting comparable store sales.
Nevertheless, the analyst likes Wal-Mart’s focus on building its e-commerce capabilities, forays into new markets, expanding product assortments and implementation of innovative ways to drive traffic. (You can .)
Other noteworthy reports we are featuring today include Kimberly-Clark (NYSE:KMB) (KMB) and NIKE (NKE).
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Today's Must Read/h6
Featured Reports/h6
Universal Forest Products' acquisition of The UBEECO Group is in sync with its inorganic growth policy. The assets bought will boost the company's industrial packaging businesses in Australia.
The Zacks analyst believes Prudential strives to build its leadership position in the pension risk transfer market which has great potential. However, exposure to low interest rates remains headwind.
Though risks persist, the covering analyst thinks that Salesforce's strategic acquisitions and diverse cloud offerings will help it in achieving the target of $10 billion in sales by 2018.
The Zacks analyst believes that Valero's diversified refining presence led it to outperform the broader industry. However, the recent EPA mandate could limit profitability.
The covering analyst thinks SL Green's solid leasing activity in 2016 and an increase in its dividend look encouraging.
Being one of the most oil-weighted majors, the Zacks analyst thinks Chevron will benefit from the recent OPEC deal and the ensuing crude rally.
The covering analyst thinks Nike (NYSE:NKE)'s constant innovations, efficient supply chain and strategic investments remain growth drivers.
Universal Forest Products' acquisition of The UBEECO Group is in sync with its inorganic growth policy. The assets bought will boost the company's industrial packaging businesses in Australia.
The Zacks analyst believes Prudential strives to build its leadership position in the pension risk transfer market which has great potential. However, exposure to low interest rates remains headwind.
Though risks persist, the covering analyst thinks that Salesforce's strategic acquisitions and diverse cloud offerings will help it in achieving the target of $10 billion in sales by 2018.
The Zacks analyst believes that Valero's diversified refining presence led it to outperform the broader industry. However, the recent EPA mandate could limit profitability.
The covering analyst thinks SL Green's solid leasing activity in 2016 and an increase in its dividend look encouraging.
Being one of the most oil-weighted majors, the Zacks analyst thinks Chevron will benefit from the recent OPEC deal and the ensuing crude rally.
The covering analyst thinks Nike (NYSE:NKE)'s constant innovations, efficient supply chain and strategic investments remain growth drivers.
New Upgrades/h6
The Zacks analyst believes organic growth and value accretive acquisitions have been aiding Central Garden & Pet's performance. This is evident from its fourth-quarter fiscal 2016 results.
The covering analyst believes that AMD's collaboration with Mentor Graphics augurs well for the company given the huge scope for growth in the embedded technology space.
S&P Global continues to impress by beating earnings for the 15th consecutive quarter and revenues twice on the trot. The company raised its guidance on the back of healthy growth dynamics.
The Zacks analyst believes organic growth and value accretive acquisitions have been aiding Central Garden & Pet's performance. This is evident from its fourth-quarter fiscal 2016 results.
The covering analyst believes that AMD's collaboration with Mentor Graphics augurs well for the company given the huge scope for growth in the embedded technology space.
S&P Global continues to impress by beating earnings for the 15th consecutive quarter and revenues twice on the trot. The company raised its guidance on the back of healthy growth dynamics.
New Downgrades/h6
After posting weak third quarter results, Kimberly-Clark lowered its 2016 earnings view. Per the Zacks analyst, the company anticipates sluggish organic sales growth in the near term.
The covering analyst believes that AIG's declining global share as a result of various asset disposals, unfavorable reserve development and catastrophe loss will hurt its bottom line.
The Zacks analyst thinks that though Host Hotels has a solid portfolio across lucrative markets, its growth is likely to be limited in Q4 due to a slump in business travel and election cycle.
After posting weak third quarter results, Kimberly-Clark lowered its 2016 earnings view. Per the Zacks analyst, the company anticipates sluggish organic sales growth in the near term.
The covering analyst believes that AIG's declining global share as a result of various asset disposals, unfavorable reserve development and catastrophe loss will hurt its bottom line.
The Zacks analyst thinks that though Host Hotels has a solid portfolio across lucrative markets, its growth is likely to be limited in Q4 due to a slump in business travel and election cycle.
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