Top Research Reports For Lockheed Martin, 3M & T-Mobile
Zacks Investment Research | Oct 25, 2017 03:08AM ET
Wednesday, October 25, 2017
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 Lockheed Martin (LMT), 3M (MMM) and T-Mobile (TMUS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Lockheed Martin’s shares have gained +25.2% over the past year, underperforming the Zacks Aerospace Defense sector, which has gained +46.7% over the same period. Lockheed Martin's third-quarter 2017 earnings and revenues missed expectations. However, year-over-year results were impressive.
Being the largest defense contractor in the world, Lockheed Martin witnesses strong demand for its high-end military equipments in both domestic as well as overseas markets. The latest $3.8 billion deal signed with the Bahrain government is expected to strongly boost its growth.
However, the F-35 program, despite being a prime defense project for the U.S. government, has been facing criticism for being overtly expensive, for past few years. Moreover, the company's limited commercial exposure and almost full government dependency may prove fatal in maintaining its margins and bottom line.
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Shares of Buy-rated 3M have gained +31.4% year to date, outperforming the Zacks Diversified Operations industry, which has declined -0.7% over the same period. Driven by broad-based organic growth across all segments and geographies, 3M reported strong third-quarter 2017 results with healthy year-over-year increase in earnings and revenues that beat expectations.
The Zacks analyst likes 3M's global footprint, diversified product portfolio and ability to penetrate different markets. The company is continuing with its portfolio restructuring efforts by divesting assets that are no longer a strategic fit and continues to make investments in other lucrative markets.
3M is standardizing its business processes through a new global ERP system for significant operational savings and has raised its guidance for 2017 on healthy growth dynamics. However, given its international presence, adverse foreign currency translations are likely to affect 3M’s ability to realize projected growth rates in sales and earnings.
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T-Mobile’s shares have been strong performers lately -- the stock is up +25.9% over the last 12 months, handily outperforming the Zacks National Wireless industry (stagnant with 0% growth) and the broader Zacks Telecommunications Services industry (up +1.8%). T-Mobile US posted strong third-quarter 2017 financial results, with 1.329 million net customer additions.
The Zacks analyst thinks T-Mobile US' network expansion and improvement plans, deployment of LTE-U technology and attractive unlimited data plans have driven customer additions. T-Mobile US is making its unlimited postpaid wireless service, T-Mobile ONE, more attractive with the inclusion of services from online video streaming service provider, Netflix Inc (NASDAQ:NFLX).
The company has decided to roll out 600 MHz wireless spectrum in its footprints and has conducted successful Narrowband Internet of Things (NB-IoT) tests live on its commercial network. However, competitive and saturated wireless market and marketing costs of the low-priced promotional plans are major headwinds. Also, it faces increased scrutiny in its working conditions by regulatory authorities.
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Other noteworthy reports we are featuring today include Broadcom (NASDAQ:AVGO) (AVGO), Roche (RHHBY) and Intuitive Surgical (NASDAQ:ISRG) (ISRG).
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Today's Must Read/h6
Featured Reports/h6
While the covering analyst likes Core Labs' patented technology to enhance reservoir recovery rates, the lack of new deepwater drilling orders limits upside from current levels.
The Zacks analyst appreciates the growth in overall carload volumes.
Per the Zacks analyst, Owens-Illinois' expansion of JV with Constellation Brands (NYSE:STZ) will help tap the growing imported beer market and negate the impact of low megabeer demand in the United States.
Per the Zacks Analyst, Equity Residential is likely to ride high with steady demand for rental housing in its markets.
Per the Zacks analyst, solid European business and broad-based improvement in the labor market drove earnings for ManpowerGroup, although margin contraction remained a perennial threat.
Per the Zacks analyst, sales from Tecentriq and Ocrevus should boost Roche's top-line while legacy drugs like Rituxan face competition from biosimilars and generics.
Per the Zacks analyst, Seagate is benefiting from increasing adoption of Nearline hard-drive disks (HDDs), which is likely to boost its competitive position against Western Digital (NASDAQ:WDC).
While the covering analyst likes Core Labs' patented technology to enhance reservoir recovery rates, the lack of new deepwater drilling orders limits upside from current levels.
The Zacks analyst appreciates the growth in overall carload volumes.
Per the Zacks analyst, Owens-Illinois' expansion of JV with Constellation Brands (NYSE:STZ) will help tap the growing imported beer market and negate the impact of low megabeer demand in the United States.
Per the Zacks Analyst, Equity Residential is likely to ride high with steady demand for rental housing in its markets.
Per the Zacks analyst, solid European business and broad-based improvement in the labor market drove earnings for ManpowerGroup, although margin contraction remained a perennial threat.
Per the Zacks analyst, sales from Tecentriq and Ocrevus should boost Roche's top-line while legacy drugs like Rituxan face competition from biosimilars and generics.
Per the Zacks analyst, Seagate is benefiting from increasing adoption of Nearline hard-drive disks (HDDs), which is likely to boost its competitive position against Western Digital (NASDAQ:WDC).
New Upgrades/h6
The Zacks analyst is optimistic on PetMed's new strategy executions including focus on advertising efficiencies and product expansion to revitalize top line. These have boosted new order sales in Q2.
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 2017.
The Zacks analyst is bullish on Intuitive Surgical's solid procedure performance in Asia, particularly in China, Japan and Korea. The company also gained from the receipt of CE Mark for da Vinci X.
The Zacks analyst is optimistic on PetMed's new strategy executions including focus on advertising efficiencies and product expansion to revitalize top line. These have boosted new order sales in Q2.
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 2017.
The Zacks analyst is bullish on Intuitive Surgical's solid procedure performance in Asia, particularly in China, Japan and Korea. The company also gained from the receipt of CE Mark for da Vinci X.
New Downgrades/h6
Per the covering analyst, sluggish deepwater activities and dampened subsea equipment demand due to weak oil prices have adversely affected the backlog of McDermott.
Due to lack of a consistent energy policy in Northeast region, Eversource Energy had to drop the permit process for the $3.2 billion Access Northeast pipeline, which will hurt its prospects.
Per the Zacks analyst, the uncertainty that resulted from the delay in Brocade acquisition is a concern for Broadcom in the near term.
Per the covering analyst, sluggish deepwater activities and dampened subsea equipment demand due to weak oil prices have adversely affected the backlog of McDermott.
Due to lack of a consistent energy policy in Northeast region, Eversource Energy had to drop the permit process for the $3.2 billion Access Northeast pipeline, which will hurt its prospects.
Per the Zacks analyst, the uncertainty that resulted from the delay in Brocade acquisition is a concern for Broadcom in the near term.
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