Top Stock Reports For Merck, Caterpillar & Intel
Zacks Investment Research | Aug 31, 2017 05:10AM ET
Thursday, August 31, 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 Merck (MRK), Caterpillar (NYSE:CAT) (CAT) and Intel (INTC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see
Merck’s shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the last year, gaining +3.3% versus +7.5%. However, Merck has been pursuing acquisitions and business development deals to boost its pipeline. New products like Keytruda and Zepatier should continue to contribute meaningfully to the top line.
Keytruda is gaining strong momentum from new indication of first-line lung cancer. The Keytruda development program also significantly advanced in the first half with several key regulatory approvals.
Meanwhile, Merck will continue to focus on cost-cutting initiatives to drive the bottom line. However, generic competition for several drugs and pricing pressure will continue to be overhangs on the top line. Rising competition in the immuno-oncology market is also a significant concern. The Zacks analyst discusses all of these issues in the updated research report issued today.
(You can ) .
Shares of Strong Buy-rated Caterpillar have gained +29.7% year-to-date, outperforming the Zacks Construction and Mining industry which has increased +27.2% over the same period. Caterpillar has been awarded a five year $663.6 million fixed-price contract from the Pentagon to supply commercial construction equipment. Caterpillar reported 12% rise in sales in July, its best performance so far in 2017.
Backed by upbeat results and improved order activity, Caterpillar hiked revenue guidance to the range of $42–$44 billion and projects earnings per share of $5.00. The Zacks analyst thinks Asia Pacific will continue to be a catalyst for both Resource Industries as well as construction, owing to increased infrastructure and residential investment in China.
Leading indicators of U.S. construction signal robust conditions ahead that bode well for Caterpillar. Further, efforts to reduce costs will boost margins.
(You can ) .
Buy-rated Intel’s shares have lost -1.7% year to date, in contrast to the broader Technology sector as well as the red-hot semiconductors space (each up +19.7%). But Intel’s growing focus on the data-centric part of the business is encouraging. The launch of Xeon Scalable is anticipated to improve its footprint in the data center as well as AI space, going forward.
Get The News You Want
The company unveiled Myriad X, which will boost footprint in the IoT space. Moreover, the recent Core 8 launch will boost PC market share amid intensifying competition from AMD. Further, anticipated improvement in cost structure and lower spending, primarily due to improving operational efficiency will aid in expansion of margins going forward.
Additionally, aggressive share buyback will boost the bottom line in 2017. However, Top-PC makers like HP, Lenovo, and Asus are set to launch PCs based on Qualcomm’s ARM-based Snapdragon processor, which is a headwind for the company. Moreover, declining PC-shipments is a concern.
(You can ) .
Other noteworthy reports we are featuring today include Brown-Forman (BF.B), Analog Devices (ADI) and Best Buy (BBY).
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
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, Immune Design's efforts on pipeline development are appreciable. However, dependence on other companies for revenue growth increases its vulnerability.
The Zacks analyst believes ONEOK's recent acquisition of ONEOK Partners further expanded its asset base in prime locations but its high debt level is a concern.
Per the Zacks analyst, Best Buy's New Blue strategy and sturdy online sales growth will continue to drive results higher.
Per the Zacks analyst, strong sales and operating profits at dd's DISCOUNTS helped boost Ross Stores' sales in second-quarter fiscal 2017.
The Zacks analyst believes that the Linear Technology acquisition coupled with solid positioning in growth markets will drive Analog Device's top-line.
Focus on non-gaming activity, and improving economy and tourism in Las Vegas should drive growth at MGM Resorts, per the Zacks analyst.
According to the Zacks analyst, the partnership with Amazon's Alexa will boost Microsoft's growth prospects in the rapidly growing Artificial Intelligence (AI) market.
Per the Zacks analyst, Immune Design's efforts on pipeline development are appreciable. However, dependence on other companies for revenue growth increases its vulnerability.
The Zacks analyst believes ONEOK's recent acquisition of ONEOK Partners further expanded its asset base in prime locations but its high debt level is a concern.
Per the Zacks analyst, Best Buy's New Blue strategy and sturdy online sales growth will continue to drive results higher.
Per the Zacks analyst, strong sales and operating profits at dd's DISCOUNTS helped boost Ross Stores' sales in second-quarter fiscal 2017.
The Zacks analyst believes that the Linear Technology acquisition coupled with solid positioning in growth markets will drive Analog Device's top-line.
Focus on non-gaming activity, and improving economy and tourism in Las Vegas should drive growth at MGM Resorts, per the Zacks analyst.
According to the Zacks analyst, the partnership with Amazon's Alexa will boost Microsoft's growth prospects in the rapidly growing Artificial Intelligence (AI) market.
New Upgrades/h6
Per the Zacks analyst, Brown-Forman's underlying sales is gaining from its premium American whiskey and tequila brands, as well as Jack Daniel's trademark. This trend is likely to continue in future.
The Zacks analyst believes that Accenture's sustained focus on enhancing capabilities through acquisitions like VERAX and partnerships with the likes of Apple (NASDAQ:AAPL) are key growth drivers.
The Zacks analyst anticipates Bayer's $66-billion buyout deal and launch of state-of-the-art crop-yield enhancing solutions will boost Monsanto's near-term results.
Per the Zacks analyst, Brown-Forman's underlying sales is gaining from its premium American whiskey and tequila brands, as well as Jack Daniel's trademark. This trend is likely to continue in future.
The Zacks analyst believes that Accenture's sustained focus on enhancing capabilities through acquisitions like VERAX and partnerships with the likes of Apple (NASDAQ:AAPL) are key growth drivers.
The Zacks analyst anticipates Bayer's $66-billion buyout deal and launch of state-of-the-art crop-yield enhancing solutions will boost Monsanto's near-term results.
New Downgrades/h6
Per the Zacks analyst, H&R Block's escalating operating and litigation costs, which include employment related lawsuits in various parts of the country, will continue to put pressure on margins.
The Zacks analyst believes the current softness in oil prices will create a bottleneck in Occidental's plans to gain by producing more oil from the Permian Resources.
Lofty capital spending, slower production growth due to asset sales and exposure to the violence-prone regions in Nigeria has made the Zacks analyst turn bearish on Royal Dutch Shell.
Per the Zacks analyst, H&R Block's escalating operating and litigation costs, which include employment related lawsuits in various parts of the country, will continue to put pressure on margins.
The Zacks analyst believes the current softness in oil prices will create a bottleneck in Occidental's plans to gain by producing more oil from the Permian Resources.
Lofty capital spending, slower production growth due to asset sales and exposure to the violence-prone regions in Nigeria has made the Zacks analyst turn bearish on Royal Dutch Shell.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.