Top Research Reports For Facebook, Intel & Boeing
Zacks Investment Research | Jun 01, 2018 02:22AM ET
Friday, June 1, 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 Facebook (NASDAQ:FB), Intel (INTC) and Boeing (BA). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Facebook’s shares have outperformed the S&P 500 index in the last year, gaining +24.8% vs. +10.7%. The Zacks analyst thinks Facebook is benefitting from robust growth in advertising and user base. Rising mobile conversions on the platform is driving mobile ad growth. Growing popularity of Stories across all its major platforms, with Instagram taking center stage, is a tailwind.
Apart from mobile and video, the monetization opportunities of Messenger, WhatsApp and Oculus and a huge user base are expected to drive growth going ahead. However, increasing regulatory scrutiny remains an overhang on the stock. Facebook's sizable investments to tighten security on the platform along with continued investments in video, AR/VR and AI will dent operating margins going ahead.
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Shares of Intel have underperformed the Zacks General Semiconductor industry over the past one year, gaining +52% vs. +54.5%. However, the Zacks analyst thinks Intel is benefiting from robust performance of the Data Center Group, Internet-of-Things Group, Non-Volatile Memory Solutions and Programmable Solutions Group.
These segments form the crux of Intel’s data-centric business model. The company’s strategy of expanding TAM beyond CPU to adjacent product lines like silicon photonics, fabric, network ASICs, and 3D XPoint memory is bearing fruit. Further, expanding customer base in the PSG segment drove top-line growth.
Moreover, stable PC market is also positive for the company. Additionally, lower spending helped in expanding operating margins. Intel raised 2018 guidance based on these solid growth trends. However, delay in transition to 10-nm process is a concern. Moreover, intensifying competition remains a headwind.
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Buy-ranked Boeing’s shares have surged +85.1% in the last year, outperforming the Zacks Aerospace & Defense sector, which gained +36.8% during the same time period. The Zacks analyst emphasizes that the company is the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries.
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Considering the huge global demand for commercial jets, Boeing has been enjoying an enormous flow of orders from all over the world. In this regard, the company’s 20-year market outlook forecasts commercial jetliner demand to increase by 3.6%. Boeing expects single-aisle jets to be the major driver behind this demand growth.
Meanwhile, Middle East has emerged as another promising market for Boeing, as is evident from its latest JV worth $450 million with Saudi Arabia. Also, India appears to be another promising market for Boeing as the country is expected to become the world’s fastest growing aviation market. Yet, this aerospace giant continues to face challenges from stiff competition.
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Other noteworthy reports we are featuring today include Las Vegas Sands (LVS), Humana (HUM) and Baxter (BAX).
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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
The Zacks analyst likes the company's efforts to modernize its fleet. The increase in passenger revenues is also encouraging. High fuel costs are, however, limiting bottom-line growth.
Per the Zacks analyst, GameStop's Collectibles sales buoyed by expansion of licensed merchandise offerings have been profitable.
The Zacks analyst believes that Analog Devices' strength in the industrial and auto markets will remain growth catalysts.
The Zacks analyst thinks that Red Robin's increased focus on serving distinguished menu and innovation across its signature burgers would effectively drive revenues.
While cost-cuts and high processing volumes buoy PetroChina's downstream unit, the Zacks analyst is worried about the firm's high exposure in the mature Daqing oil field that curbs its output prospects.
The Zacks analyst believes that Las Vegas Sands' EBITDA margins are improving consistently owing to focus on mass and non-gaming segments that carry higher margins.n
Per the Zacks analyst, Michael Kors Runway 2020 strategic plan, which focuses on product innovation and brand engagement, may help drive sales.
The Zacks analyst likes the company's efforts to modernize its fleet. The increase in passenger revenues is also encouraging. High fuel costs are, however, limiting bottom-line growth.
Per the Zacks analyst, GameStop's Collectibles sales buoyed by expansion of licensed merchandise offerings have been profitable.
The Zacks analyst believes that Analog Devices' strength in the industrial and auto markets will remain growth catalysts.
The Zacks analyst thinks that Red Robin's increased focus on serving distinguished menu and innovation across its signature burgers would effectively drive revenues.
While cost-cuts and high processing volumes buoy PetroChina's downstream unit, the Zacks analyst is worried about the firm's high exposure in the mature Daqing oil field that curbs its output prospects.
The Zacks analyst believes that Las Vegas Sands' EBITDA margins are improving consistently owing to focus on mass and non-gaming segments that carry higher margins.n
Per the Zacks analyst, Michael Kors Runway 2020 strategic plan, which focuses on product innovation and brand engagement, may help drive sales.
New Upgrades/h6
Per the Zacks analyst, Citizens Financial's "Tapping Our Potential" (TOP) initiatives are expected to boost revenues and efficiency. It expects to deliver a pre-tax benefit of $110 million in 2018.
The Zacks analyst is optimistic about Baxter's surgical portfolio. It includes products like FLOSEAL Hemostatic Matrix, TISSEEL Fibrin Sealant and VASCU-GUARD Patch.
Per the Zacks analyst, Humana's Medicare business has been performing strongly over several past quarters. This has led to membership and revenue growth.
Per the Zacks analyst, Citizens Financial's "Tapping Our Potential" (TOP) initiatives are expected to boost revenues and efficiency. It expects to deliver a pre-tax benefit of $110 million in 2018.
The Zacks analyst is optimistic about Baxter's surgical portfolio. It includes products like FLOSEAL Hemostatic Matrix, TISSEEL Fibrin Sealant and VASCU-GUARD Patch.
Per the Zacks analyst, Humana's Medicare business has been performing strongly over several past quarters. This has led to membership and revenue growth.
New Downgrades/h6
Per the Zacks analyst, Edison International's financial results will be affected by adverse regulatory outcome for its 2018 GRC application and inability to recover uninsured wildfire-related costs.
The Zacks analyst is worried about PPG Industries' exposure to raw materials cost pressure. Raw material inflation is expected to continue through Q2, which may affect its margins.
Per the Zacks analyst, Telefonica Brasil is plagued by saturated fixed line voice business and stiff competition from alternative service offerings like wireless telephony, VoIP and cable services.
Per the Zacks analyst, Edison International's financial results will be affected by adverse regulatory outcome for its 2018 GRC application and inability to recover uninsured wildfire-related costs.
The Zacks analyst is worried about PPG Industries' exposure to raw materials cost pressure. Raw material inflation is expected to continue through Q2, which may affect its margins.
Per the Zacks analyst, Telefonica Brasil is plagued by saturated fixed line voice business and stiff competition from alternative service offerings like wireless telephony, VoIP and cable services.
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