Top Stock Reports For BlackRock, Charter Communications & Intuitive Surgical
Zacks Investment Research | Apr 23, 2018 03:09AM ET
Monday, April 23, 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 BlackRock (BLK), Charter Communications (NASDAQ:CHTR) and Intuitive Surgical (NASDAQ:ISRG). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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BlackRock’s shares have outperformed the Zacks Investment Management industry in the last six months, (+10.7% vs. -1.5%). This performance was supported by impressive earnings surprise history as the company surpassed expectations in three of the trailing four quarters. Its first-quarter 2018 results were supported by higher revenues and growth in assets under management (AUM).
The company is undertaking initiatives to restructure its actively managed equities business and expand globally via acquisitions to further boost top-line growth. Also, its efficient capital deployment activities will continue to enhance shareholder value. However, mounting expenses, mainly due to continued rise in marketing costs, might hurt the bottom-line growth to some extent. The company's high dependence on overseas revenues remains a matter of concern.
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Shares of Charter Communications have outperformed the Zacks Cable TV industry over the past three months (-17.4% vs. -18.1%). Charter’s residential and commercial internet and voice customer growth continues to accelerate, which is evident from the revenue growth and subscriber gain. The Zacks analyst thinks the recently announced partnership with Comcast (NASDAQ:CMCSA) to develop back-end software to support services for Xfinity and Spectrum mobile offerings is significantly positive for the company’s growth prospects.
The collaboration will help in saving costs for both the companies. However, the company continues to struggle due to sluggish growth in a saturated and competitive multi-channel U.S. video market. Charter also faces stiff competition from online TV streaming service providers. The company's high debt level and consolidation-related woes are other potential hazards.
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Strong Buy-ranked Intuitive Surgical’s shares have outperformed the Zacks Medical Instruments industry over the last year, gaining +66.5% vs +1%. Intuitive Surgical ended the first quarter of 2018 on a solid note, with both earnings and revenues surpassing expectations. The company’s flagship da Vinci procedures recorded solid growth and holds promise for the quarters ahead.
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The company also saw solid expansion outside the United States in the recent past. A suite of regulatory approvals buoys optimism. Solid growth in prostatectomy procedure volumes lent Intuitive Surgical a competitive edge in the broader prostate surgery market. However, the company expects U.S. sales to decline in the quarters ahead, which raises concern.
Furthermore, looming foreign exchange volatility also adds to the woes. Intense competition in niche space and long sale and purchase order cycles of da Vinci unit has been currently plaguing the company.
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Other noteworthy reports we are featuring today include Statoil (OL:STL) (STO), Diageo (LON:DGE) (DEO) and Aon (AON).
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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 thinks that Nilit and Omni Plastics acquisitions as well as operational cost savings through productivity actions will drive Celanese's profitability in FY18.
According to the Zacks analyst, Valmont should gain from its restructuring actions that are geared to improve productivity amid headwinds from raw material cost inflation in 2018.
Per the Zacks analyst, improved store sales & digital initiatives are aiding CarMax's comparable-store used vehicle sales. The rise in sales is getting complimented by aggressive store expansion.
Per a Zacks analyst, Stanley Black & Decker (NYSE:SWK)'s Nelson Fastener buyout will fortify its Engineered Fastening business and prove accretive to earnings in 2018. Commodity inflation remains a drag.
Per the Zacks analyst, Aon largely benefits from its partnerships; the recent one with HP to combat cyber attacks is worth a mention here.
Per Zacks analyst, BancorpSouth's efforts to drive operational efficiency through cost-control measures and strategic deals remain encouraging.
Per the Zacks analyst, Skechers' international business remains a key sales driver, apart from product innovation.
The Zacks analyst thinks that Nilit and Omni Plastics acquisitions as well as operational cost savings through productivity actions will drive Celanese's profitability in FY18.
According to the Zacks analyst, Valmont should gain from its restructuring actions that are geared to improve productivity amid headwinds from raw material cost inflation in 2018.
Per the Zacks analyst, improved store sales & digital initiatives are aiding CarMax's comparable-store used vehicle sales. The rise in sales is getting complimented by aggressive store expansion.
Per a Zacks analyst, Stanley Black & Decker (NYSE:SWK)'s Nelson Fastener buyout will fortify its Engineered Fastening business and prove accretive to earnings in 2018. Commodity inflation remains a drag.
Per the Zacks analyst, Aon largely benefits from its partnerships; the recent one with HP to combat cyber attacks is worth a mention here.
Per Zacks analyst, BancorpSouth's efforts to drive operational efficiency through cost-control measures and strategic deals remain encouraging.
Per the Zacks analyst, Skechers' international business remains a key sales driver, apart from product innovation.
New Upgrades/h6
The Zacks analyst appreciates the company's efforts to reward shareholders. Improvement in the Rail International unit's profit is also encouraging.
Per the Zacks analyst WEC Energy's plans to invest $11.8B to fortify its electric and gas delivery operation and energy infrastructure by 2022, will help it to serve its rising customer base.
The Zacks analyst expects Statoil to generate significant cash flow from new upstream projects in the Norwegian Continental Shelf.
The Zacks analyst appreciates the company's efforts to reward shareholders. Improvement in the Rail International unit's profit is also encouraging.
Per the Zacks analyst WEC Energy's plans to invest $11.8B to fortify its electric and gas delivery operation and energy infrastructure by 2022, will help it to serve its rising customer base.
The Zacks analyst expects Statoil to generate significant cash flow from new upstream projects in the Norwegian Continental Shelf.
New Downgrades/h6
Per Zacks analyst, Deutsche Bank's revenues continue to remain under pressure due to the prevailing low rate environment in the European economy. Also, pending legal matters will keep costs elevated.
Per the Zacks analyst DTE Energy faces stringent government regulations for curbing emissions. Such new legislation can change how the company operates its business and lead to additional expenses.
Diageo sales were hit by currency woes in first-half fiscal 2018, given its solid global presence. Thus, the Zacks analyst expects adverse currency movements to remain a threat for Diageo's top line.
Per Zacks analyst, Deutsche Bank's revenues continue to remain under pressure due to the prevailing low rate environment in the European economy. Also, pending legal matters will keep costs elevated.
Per the Zacks analyst DTE Energy faces stringent government regulations for curbing emissions. Such new legislation can change how the company operates its business and lead to additional expenses.
Diageo sales were hit by currency woes in first-half fiscal 2018, given its solid global presence. Thus, the Zacks analyst expects adverse currency movements to remain a threat for Diageo's top line.
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