Top Stock Reports For Comcast, Wal-Mart & Berkshire Hathaway
Zacks Investment Research | Oct 10, 2017 05:11AM ET
Tuesday, October 10, 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 Comcast (CMCSA), Wal-Mart Stores (NYSE:WMT) (WMT) and Berkshire Hathaway (BRK.B). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Comcast shares have gained +1.5% over the last six months, outperforming the Zacks Cable Television industry which has gained +1.2% over the same period. Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand, with plans to include YouTube in its X1 video platform.
Comcast is venturing into residential solar programs with a 40-month deal with Sunrun. Comcast is working towards 5G network deployment and continues to roll out its DOCSIS 3.1-based internet services to Comcast Business customers. Comcast has forayed into the OTT video delivery market with its Internet TV service – Stream. Comcast continues to expand its theme park business.
With this, Comcast aims to check customer churn and provide viewers with more streaming options. However, tough competition, consolidation-related woes, mounting programming costs, loss of customer base act as near-term risks for Comcast. Competitive threat from online streaming service providers remains a concern.
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Share price of buy-rated Walmart has been outperforming the industry on a year-to-date basis (+16.5% vs. +8.7%), as the company is pushing itself to understand the evolving needs of its customers and expand itself in both brick-and-mortar space as well as e-commerce activities.
On one hand, the company is posting positive comps at Walmart U.S. for 12 successive quarters. On the other, it is also building its e-commerce capabilities through acquisitions and growing in the online grocery and delivery market. However, the company still faces headwinds such as unfavorable currency, stiff competition from both brick & mortar and online retailers and huge expenses related to e-commerce investments.
Nevertheless, the company makes efforts to offset these headwinds with its initiatives to boost sales. The recent move to consolidate its U.S. operations will simplify its business structure and facilitate communication as well as improve execution.
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Berkshire Hathaway shares have gained +15% year to date, outperforming the Zacks Property and Casualty Insurance industry which increased +12.1% during the same period. Berkshire Hathaway’s inorganic story remains impressive with strategic acquisitions.
Continued investment through strategic acquisition testifies confidence in business environment post new President elect. The strong cash position also allows it to make earnings-accretive bolt-on acquisitions. Demand for utilities is expected to be strong in the future and drive earnings growth.
Continued insurance business growth fuels increase in float. A sturdy capital level adds to the overall strength as well. However, Berkshire Hathaway’s exposure to catastrophe losses, Buffett’s succession and huge capital expenses on account of its railroad operations remain headwinds. Capital expenditure is estimated to be $4.8 billion for the remainder of 2017. Estimates have also moved down over the last 60 days.
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Other noteworthy reports we are featuring today include Bank of America (BAC), NextEra Energy (NYSE:NEE) (NEE) and Twenty-First Century Fox (FOXA).
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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 believes that the acquisition of iLab Solutions continues to strengthen Agilent's position in the United States, complements its sales efforts and helps to improve its services.
Per the Zacks analyst, gradual rise in interest rates and an increase in loan demand should aid SunTrust's net interest revenue growth.
Per the Zacks analyst, LabCorp is poised for imposing growth on an attractive industry trend in lab diagnostic testing market.
Per the Zacks analyst, Kellogg's cost savings from its Project K and zero-based budgeting (ZBB) plans have been supporting margins.
The Zacks analyst thinks Freeport's actions to cut mining costs should lend support to its margins in FY17. Efforts to de-lever balance sheet and expand mining reserves should also benefit the miner.
Per the Zacks analyst, Parker-Hannifin's revamped "Win Strategy" will continue to boost margins, going ahead. Also, CLARCOR and Helac buyouts are expected to fortify filtration and hydraulics units.
Start-up of new upstream projects in Ghana and Angola as well as in Indonesia have been supporting Eni's oil production growth.
The Zacks analyst believes that the acquisition of iLab Solutions continues to strengthen Agilent's position in the United States, complements its sales efforts and helps to improve its services.
Per the Zacks analyst, gradual rise in interest rates and an increase in loan demand should aid SunTrust's net interest revenue growth.
Per the Zacks analyst, LabCorp is poised for imposing growth on an attractive industry trend in lab diagnostic testing market.
Per the Zacks analyst, Kellogg's cost savings from its Project K and zero-based budgeting (ZBB) plans have been supporting margins.
The Zacks analyst thinks Freeport's actions to cut mining costs should lend support to its margins in FY17. Efforts to de-lever balance sheet and expand mining reserves should also benefit the miner.
Per the Zacks analyst, Parker-Hannifin's revamped "Win Strategy" will continue to boost margins, going ahead. Also, CLARCOR and Helac buyouts are expected to fortify filtration and hydraulics units.
Start-up of new upstream projects in Ghana and Angola as well as in Indonesia have been supporting Eni's oil production growth.
New Upgrades/h6
TJX Companies boasts of sustained growth in its comps. Per the Zacks analyst, the company's aggressive store opening and strategic marketing initiatives are expected to further boost sales.
The Zacks analyst believes NextEra's focus to generate more electricity from renewable sources is well supported by improving demand from its increasing customer base ensuring positive results.
The Zacks analyst believes that the receipt of additional federal loan guarantee of $3.7 billion for the Vogtle nuclear plant in Georgia will help Southern Company (NYSE:SO) reduce its financing costs.
TJX Companies boasts of sustained growth in its comps. Per the Zacks analyst, the company's aggressive store opening and strategic marketing initiatives are expected to further boost sales.
The Zacks analyst believes NextEra's focus to generate more electricity from renewable sources is well supported by improving demand from its increasing customer base ensuring positive results.
The Zacks analyst believes that the receipt of additional federal loan guarantee of $3.7 billion for the Vogtle nuclear plant in Georgia will help Southern Company (NYSE:SO) reduce its financing costs.
New Downgrades/h6
Per the Zacks analyst, higher expenses at Twenty-First Century Fox's Cable Network Programming may dent margins and in turn the bottom line. Meanwhile, buyout of Sky plc has hit a further roadblock.
Per the Zacks analyst, fall in mortgage banking fees owing to decline in volumes and lower refinancing make us apprehensive about BofA's revenue growth. Slump in trading income is a concern as well.
Per the Zacks analyst, Regeneron is heavily dependent on Eylea for growth and sub-par performance of the drug will hurt sales. In addition, sales of PCSK9 inhibitor, Praluent have failed to impress.
Per the Zacks analyst, higher expenses at Twenty-First Century Fox's Cable Network Programming may dent margins and in turn the bottom line. Meanwhile, buyout of Sky plc has hit a further roadblock.
Per the Zacks analyst, fall in mortgage banking fees owing to decline in volumes and lower refinancing make us apprehensive about BofA's revenue growth. Slump in trading income is a concern as well.
Per the Zacks analyst, Regeneron is heavily dependent on Eylea for growth and sub-par performance of the drug will hurt sales. In addition, sales of PCSK9 inhibitor, Praluent have failed to impress.
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