Top Stock Reports For Charter Communications, Mondelez & Halliburton
Zacks Investment Research | Mar 14, 2018 03:29AM ET
Wednesday, March 14, 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 Charter Communications (NASDAQ:CHTR), Mondelez (MDLZ) and Halliburton (HAL). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Charter Communications’ shares have outperformed the Zacks Cable TV industry over the past three months (+8.6% vs. -4.3%). Moreover, the Zacks analyst likes the company’s wireless venture, along with plans to offer its wireless service in 2018. The company’s residential and commercial internet and voice customer growth continues to accelerate, evident from the revenue growth and subscriber gains.
Further, despite cord-cutting, the company reported a net gain of 15,000 video, 300,000 Internet and 53,000 voice customers in fourth-quarter of 2017. However, Charter's operations in a saturated and competitive multi-channel U.S. video market is a worry. The company continues to face 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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Shares of Mondelez have lost -1.2% in the last one year, outperforming the -11% decline of the Zacks Food Preparation industry. Mondelez reported fourth-quarter 2017 results, with earnings beating expectations and revenues meeting the same. Adjusted earnings grew 21%, primarily driven by operating gains. Net revenues increased 2.9% year over year, courtesy of the Power Brands and favorable trends in emerging markets. Emerging markets’ net revenues rose 6.3%, while Power Brands witnessed a 3.7% rise.
Regionally, Latin America, Asia, Middle East & Africa and Europe registered an increase of 4.2%, 2.6% and 5% in revenues, respectively. However, North America’s revenues declined 0.6%. Adjusted operating margin expanded 180 basis points year over year on lower overhead costs owing to continued cost reduction.
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Halliburton’s shares have outperformed the Zacks Oil & Gas Field Services industry over the past six months (up +9% vs. -2.9%). This price performance is backed by phenomenal earnings surprise history, with HAL having surpassed expectations in all the trailing 14 quarters. The world’s No. 2 oilfield-services provider's consistently strong numbers could be attributed to improved utilization and pricing gains in North America.
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Of late, HAL has also been aided by margin expansion at its drilling and evaluation product lines, while the international market continues to improve. However, cost inflation triggered by increased fracking sand pricing is likely to dampen investor confidence. Moreover, with the failure of BHI acquisition, HAL had to book a massive $3.5 billion in breakup charges that stretched its balance sheet. Hence, the Zacks analyst advises investors to wait for a better entry point before buying shares of HAL.
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Other noteworthy reports we are featuring today include JetBlue (JBLU), ONEOK (NYSE:OKE) and Fujifilm (FUJIY).
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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
Per The Zacks analyst, Epizyme's efforts on developing its lead piepeline candidate, tazemetostat,is impressive. However, the company also faces stiff competition.
Per the Zacks analyst, VeriFone is benefiting from growing demand for mobile POS devices. High growth in Latin America fueled by strong demand in Brazil, Argentina and Mexico is a key driver.
Per the Zacks analyst, IDACORP's performance will be driven by increasing customer count and ongoing improvement in economic conditions in its service territories.
Per the Zacks analyst, BJ's Restaurants' streamlined and innovative menu along with various technology-driven initiatives like hand-held ordering tablets are driving top and bottom-line growth
The Zacks analyst likes the healthy traffic growth at JetBlue, which is boosting the top line.
The Zacks analyst thinks that Goldcorp's focus on reducing mining costs and improving productivity should boost margins in FY18 amid its weakening gold production.
Per the Zacks analyst, DICK'S Sporting's investments in e-commerce, technology, Team Sports and private brands should boost market share. Softness in hunting and electronic goods is hurting sales.
Per The Zacks analyst, Epizyme's efforts on developing its lead piepeline candidate, tazemetostat,is impressive. However, the company also faces stiff competition.
Per the Zacks analyst, VeriFone is benefiting from growing demand for mobile POS devices. High growth in Latin America fueled by strong demand in Brazil, Argentina and Mexico is a key driver.
Per the Zacks analyst, IDACORP's performance will be driven by increasing customer count and ongoing improvement in economic conditions in its service territories.
Per the Zacks analyst, BJ's Restaurants' streamlined and innovative menu along with various technology-driven initiatives like hand-held ordering tablets are driving top and bottom-line growth
The Zacks analyst likes the healthy traffic growth at JetBlue, which is boosting the top line.
The Zacks analyst thinks that Goldcorp's focus on reducing mining costs and improving productivity should boost margins in FY18 amid its weakening gold production.
Per the Zacks analyst, DICK'S Sporting's investments in e-commerce, technology, Team Sports and private brands should boost market share. Softness in hunting and electronic goods is hurting sales.
New Upgrades/h6
The Zacks analyst believes ONEOK will continue to gain from its increasing fee based commitments and recent $4.2 billion capital expenditure to strengthen its existing infrastructure.
Per the Zacks analyst, Altra Industrial Motion stands to gain from its strategic buyouts. Upon completion, Fortive assets will create a global leader in motion control and power transmission.
The Zacks analyst believes that Ensco's merger with Atwood will provide premium fleet of jackup & floaters that would help in clinching new orders in spite of the ongoing commodity price volatility.
The Zacks analyst believes ONEOK will continue to gain from its increasing fee based commitments and recent $4.2 billion capital expenditure to strengthen its existing infrastructure.
Per the Zacks analyst, Altra Industrial Motion stands to gain from its strategic buyouts. Upon completion, Fortive assets will create a global leader in motion control and power transmission.
The Zacks analyst believes that Ensco's merger with Atwood will provide premium fleet of jackup & floaters that would help in clinching new orders in spite of the ongoing commodity price volatility.
New Downgrades/h6
Per the Zacks analyst, L Brands' deteriorating margins and soft fiscal 2018 projections are major concerns. It is focusing on cost containment, inventory management and merchandise to lift margins.
Per the Zacks analyst, investment in technology and efforts to introduce new products may keep Sallie Mae's costs high. Also, exposure to brokered deposits as key source for funding remains a concern.
The Zacks analyst thinks that weaker Documents Solutions business and costs associated with ongoing restructuring moves might weigh on Fujifilm's near-term revenues and profitability.
Per the Zacks analyst, L Brands' deteriorating margins and soft fiscal 2018 projections are major concerns. It is focusing on cost containment, inventory management and merchandise to lift margins.
Per the Zacks analyst, investment in technology and efforts to introduce new products may keep Sallie Mae's costs high. Also, exposure to brokered deposits as key source for funding remains a concern.
The Zacks analyst thinks that weaker Documents Solutions business and costs associated with ongoing restructuring moves might weigh on Fujifilm's near-term revenues and profitability.
Zacks Investment Research
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