Top Stock Reports For Duke Energy, Charter Communications & Abbott
Zacks Investment Research | May 25, 2018 12:43AM ET
Friday, May 25, 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 Duke Energy (DUK), Charter Communications (NASDAQ:CHTR) and Abbott (ABT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Duke Energy's shares have underperformed the Zacks Electric Power industry in the last year, declining -11% vs -5.7%. Duke Energy kick-started 2018 on a solid note, with its first quarter earnings as well as revenues having surpassed their respective expectations.
Year-over-year also results were impressive. The company currently boasts a robust five-year capital plan and plans to invest about $48.2 billion in growth projects over the 2018-2022 time frame. The Zacks analyst also likes the company’s efforts to expand its renewable base.
However, Duke Energy faces challenges from severe weather conditions and natural calamities like hurricanes, which may result in breakdown and damage to its infrastructure. Moreover, the company expects to incur environmental compliance costs of $3.4 billion for the 2018-2022 time frame.
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Shares of Charter Communications have underperformed the Zacks Cable TV industry over the past three months (-25% vs. -19.1%). Charter’s first-quarter 2018 results benefited from subscriber growth in residential and commercial internet and voice segment. The 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.
However, Charter continues to struggle due to a saturated and competitive multi-channel U.S. video market. The company also faces stiff competition from online TV streaming service providers. The Zacks analyst also thinks that the company's high debt level and consolidation-related woes are major headwinds.
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Abbott’s shares have gained +11.3% over the last six months, outperforming the Zacks Medical Products industry, which has gained +7.4% over the same period. The Zacks analyst likes the strong and consistent performance by the company’s EPD and Medical Devices segments.
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Also, solid contributions from Diagnostics and Nutrition business are encouraging. The company’s receipt of FDA approval for XIENCE Sierra coronary stent system will help it to revive the dull Vascular business. Within Structural Heart, strong uptake of MitraClip therapy post the national reimbursement approval in Japan also encourages us. Abbott’s Alere buyout is another positive. Synergies from this consolidation in the form of revenues from Rapid Diagnostics have been driving the company’s growth.
Meanwhile, the company’s emerging market performance has been extremely promising on several strategic developments. On the flip side, sluggish Vascular business in the United States continues to dent growth.
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Other noteworthy reports we are featuring today include UnitedHealth (UNH), T. Rowe Price (TROW) and Brown-Forman (BF.B).
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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
Per the Zacks analyst, lymphoma drug Adcetris has done well since launch. Label expansion studies on the drug are ongoing.
Per the Zacks analyst, the planned TireHub JV will allow Goodyear to develop its business network and gain from enhanced brand value.
The Zacks analyst believes initiatives taken by Devon under its "2020 Vision" will further boost its profitable oil production and expand its margins through cost savings measures.
Per the Zacks analyst, strong housing demand and solid land position are expected to generate revenues for Toll Brothers.
Per the Zacks analyst, debt free position with substantial liquidity has assisted in strengthening T. Rowe Price's capital leverage.
Per the Zacks analyst, improving premiums across insurance and reinsurance segments, will continue to boost Alleghany's top line, thereby resulting in the company's overall growth.
The Zacks analyst likes the company's performance with respect to unit revenues. Efforts to modernize its fleet are also encouraging.
Per the Zacks analyst, lymphoma drug Adcetris has done well since launch. Label expansion studies on the drug are ongoing.
Per the Zacks analyst, the planned TireHub JV will allow Goodyear to develop its business network and gain from enhanced brand value.
The Zacks analyst believes initiatives taken by Devon under its "2020 Vision" will further boost its profitable oil production and expand its margins through cost savings measures.
Per the Zacks analyst, strong housing demand and solid land position are expected to generate revenues for Toll Brothers.
Per the Zacks analyst, debt free position with substantial liquidity has assisted in strengthening T. Rowe Price's capital leverage.
Per the Zacks analyst, improving premiums across insurance and reinsurance segments, will continue to boost Alleghany's top line, thereby resulting in the company's overall growth.
The Zacks analyst likes the company's performance with respect to unit revenues. Efforts to modernize its fleet are also encouraging.
New Upgrades/h6
Per the Zacks analyst, strong membership growth in the company's government business has driven revenues. Solid balance sheet enables investment in business.
The covering analyst agrees that SCANA's growth is supported by favorable electric utility rate. SCANA-Dominion merger will help in resolving issues of the abandoned V.C. Summer nuclear project.
Per the Zacks analyst, the solid organic growth trend within IDEXX's Companion Animal Group (CAG) revenues will sustain on strong global placement of high-premium Catalyst instruments.
Per the Zacks analyst, strong membership growth in the company's government business has driven revenues. Solid balance sheet enables investment in business.
The covering analyst agrees that SCANA's growth is supported by favorable electric utility rate. SCANA-Dominion merger will help in resolving issues of the abandoned V.C. Summer nuclear project.
Per the Zacks analyst, the solid organic growth trend within IDEXX's Companion Animal Group (CAG) revenues will sustain on strong global placement of high-premium Catalyst instruments.
New Downgrades/h6
Per the Zacks analyst, Ameren's aging infrastructure can lead to unplanned capital expenditures. Its high regulatory costs to comply with air emission regulations also limit bottom line growth.
Per the Zacks analyst, despite a flexible yet disciplined focus on cost and productivity, IDEX has huge recurring R&D expenses which increase cost of operations and reduce price control over products.
Per the Zacks analyst, despite modest improvement in global economic backdrop, Brown-Forman expects volatility in emerging markets and intensified competition in developed economies to hurt results.
Per the Zacks analyst, Ameren's aging infrastructure can lead to unplanned capital expenditures. Its high regulatory costs to comply with air emission regulations also limit bottom line growth.
Per the Zacks analyst, despite a flexible yet disciplined focus on cost and productivity, IDEX has huge recurring R&D expenses which increase cost of operations and reduce price control over products.
Per the Zacks analyst, despite modest improvement in global economic backdrop, Brown-Forman expects volatility in emerging markets and intensified competition in developed economies to hurt results.
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