Top Research Reports For Wal-Mart, AIG & NextEra
Zacks Investment Research | Aug 24, 2016 12:47AM ET
Wednesday, August 24, 2016
Today's Research Daily features analyst reports on 16 major stocks, including Wal-Mart (NYSE:WMT), American International (AIG) and NextEra Energy (NYSE:NEE). These 16 reports have been hand-picked from the roughly 70 reports issued by our analyt team today. You can access all of today's research reports here >>>
Wal-Mart shares have been strong performers latey (up more than 18% year-to-date) on the back of improving outlook for its core store-based operations and momentum in its online business. All of this was reconfirmed by the recent quarterly release, with revenues, earnings, and comps coming in bettter than expected. In today's research report, the analyst discusses the pros & cons of investing in Wal-Mart shares at present. The analyst likes the retail giant's focus on building its e-commerce capabilities, as evidenced by its recent deal with JD.com in China and agreement to acquire Jet.com in the U.S. The analyst points out, however, that investment in wages and higher spending on e-commerce activities will likely weigh on near-term profitability. (You can here>> )
AIG investors appear to like the insurance giant's efforts at strategic tranformation that include sale of units generating low returns, reduction of expenses and lowering hedge fund allocation. The latest in this regard are reports of sale of the company's Lloyd's of London operations and the sale of its mortgage guarantee business. Succesful execution of these plans hold the promise of enabling AIG to better navigate the current environment of interest rate overhang, litigation issues and tough competition. (You can here>> )
NextEra Energy offers investors a nice blend of stable electric utility assets and a growing renewable energy franchise. The analyst likes this dividend payer's (it pays an attractive dividend, currently yielding 2.8%) investments in renewable generation and in steps to strengthen its existing infrastructure. (You can here .)
You can find all of today's stock research reports
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Today's Must Read/h6
Featured Reports/h6
Entergy reported solid Q2 earnings that beat analysts' expectations by 201.9%. The Zacks analyst believes that Entergy's strategy of becoming a pure-play utility will ensure a secure rate of return.
The covering analyst thinks Gap's second-quarter results beat estimates, while being hurt by currency woes, tough retail scenario and softness across most brands.
Allstate's earnings beat resulted from higher premium in its property and liability segment plus higher contract charge and fees in the Allstate Financial segment, partly offset by high catastrophe loss.
The Zacks analyst is encouraged by Clovis' progress with lead pipeline candidate, rucaparib, which got priority review from the FDA.
The covering analyst is encouraged by Inovio's progress with its lead candidate, VGX-3100. The company's collaboration efforts to accelerate the development of its pipeline are also impressive.
Regal Beloit's second-quarter 2016 results were severely impacted by the frailties in the oil and gas sector and the overall industrial end markets.
The Zacks analyst believes that sales of Juxtapid will continue to be dampened by its withdrawal in the EU in the coming quarters.
Entergy reported solid Q2 earnings that beat analysts' expectations by 201.9%. The Zacks analyst believes that Entergy's strategy of becoming a pure-play utility will ensure a secure rate of return.
The covering analyst thinks Gap's second-quarter results beat estimates, while being hurt by currency woes, tough retail scenario and softness across most brands.
Allstate's earnings beat resulted from higher premium in its property and liability segment plus higher contract charge and fees in the Allstate Financial segment, partly offset by high catastrophe loss.
The Zacks analyst is encouraged by Clovis' progress with lead pipeline candidate, rucaparib, which got priority review from the FDA.
The covering analyst is encouraged by Inovio's progress with its lead candidate, VGX-3100. The company's collaboration efforts to accelerate the development of its pipeline are also impressive.
Regal Beloit's second-quarter 2016 results were severely impacted by the frailties in the oil and gas sector and the overall industrial end markets.
The Zacks analyst believes that sales of Juxtapid will continue to be dampened by its withdrawal in the EU in the coming quarters.
New Upgrades/h6
The Zacks analyst thinks sturdy comparable sales performance, cost containment efforts and other strategic initiatives helped Foot Locker post better-than-expected second-quarter results.
The covering analyst believes that Bayer's top line will be driven by newly launched products in the Pharmaceuticals segment. The company's robust pipeline and deals bode well for growth.
The Zacks analyst thinks that Celanese is poised to gain from cost savings through productivity actions and expansion initiatives. But pricing pressure and weak acetyl demand in China pose concerns.
The Zacks analyst thinks sturdy comparable sales performance, cost containment efforts and other strategic initiatives helped Foot Locker post better-than-expected second-quarter results.
The covering analyst believes that Bayer's top line will be driven by newly launched products in the Pharmaceuticals segment. The company's robust pipeline and deals bode well for growth.
The Zacks analyst thinks that Celanese is poised to gain from cost savings through productivity actions and expansion initiatives. But pricing pressure and weak acetyl demand in China pose concerns.
New Downgrades/h6
Estee Lauder issued cautious guidance for 2017 despite posting decent Q4 results. The company thinks unfavorable currency fluctuations and uncertainty surrounding Brexit might hit top lines.
The covering analyst thinks margin pressure will continue to hurt BNY Mellon's revenue growth over the next few quarters. Further, the company faces higher litigation and restructuring expenses.
The Zacks analyst believes that the uncertainty related to the China bus market and short-term changes in the Chinese government's deployment strategy for wind turbines is affecting its performance.
Estee Lauder issued cautious guidance for 2017 despite posting decent Q4 results. The company thinks unfavorable currency fluctuations and uncertainty surrounding Brexit might hit top lines.
The covering analyst thinks margin pressure will continue to hurt BNY Mellon's revenue growth over the next few quarters. Further, the company faces higher litigation and restructuring expenses.
The Zacks analyst believes that the uncertainty related to the China bus market and short-term changes in the Chinese government's deployment strategy for wind turbines is affecting its performance.
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