Wednesday, March 1, 2017
Today’s Research Daily features new research reports on 16 major stocks, including Microsoft (MSFT), Canadian National (CNI) and BP (BP).
Microsoft shares lagged the Zacks Tech sector through the fall, but have led the way over the last six months (up +10.9% versus +8.2%) on greater appreciation for the company’s reorganization and repositioning. The Zacks analyst points to the company’s continuing enterprise strength, benefits from the Office 365 subscription model, strong growth prospects of Azure and promising new products.
The acquisition of AI startup Maluuba is a big positive for the company given the growing demand for artificial intelligence techniques throughout the world. The recent announcement of Xbox Game Pass, a subscription-based gaming service, will help Microsoft to win market share from the likes of GameStop. All in all, the company has emerged as a leader in the cloud space that promises momentum on a number of fronts. (You can read the full research report onMicrosofthere . )
Buy-rated Canadian National shares have done really well since the election (up +9.1%) and have also posted healthy gains last year, but failed to outperform the Zacks Rail industry which gained 19.7% over the same period. This was primarily due to coal related headwinds. However, fourth quarter earnings exceeded expectations, driven by lower costs, while revenues increased on a year-over-year basis.
The analyst likes this Buy-rated stock’s initiatives to reward investors as well as the C$ 2.5 billion 2017 capital investment plan. The plan complements its efforts to promote safety along with enhancing productivity. (You can read the full research report onCanadian Nationalhere. )
BP ‘s shares have gained 12.3% over the last one year, outperforming the Zacks categorized Oil & Gas-International Integrated industry which gained 9.9% over the same period, as well as rival Royal Dutch Shell. The analyst is enthused by its latest announcement, that it expects the upstream and downstream segments to contribute significant cash flows over the next five years. Cash flows from the upstream operation will likely be between $ 13 billion and $ 14 billion annually.
Moreover, the downstream operation is expected to add $ 9-$ 10 billion yearly cash flows. However, volatility in commodity prices remains a concern. Moreover, the trailing 12-month return on capital is not very encouraging. (You can read the full research report onBPhere. )
Other noteworthy reports we are featuring today include Monsanto (MON), Adobe (ADBE) and Fastenal (FAST).
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Today’s Must Read
Microsoft (MSFT) Launches New Xbox Subscription Service
Canadian National’s (CNI) Safety-related Efforts Impress
BP Plc (BP) to Generate Significant Cash Flow Through 2021
Featured Reports
FirstEnergy (FE) Misses Q4 Earnings, Issues 2017 Guidance
As per the covering analyst, FirstEnergy’s broadening regulated base and growing transmission lines are expected to boost earnings going forward.
Chesapeake (CHK) Beats on Q4 Earnings, Misses Revenues
The Zacks analyst agrees that increased price realizations led Chesapeake to post better-than-expected earnings in the fourth quarter.
United States Cellular (USM) Tops Q4 Earnings, Revenues Lags
The covering analyst believes U.S. Cellular’s strategic initiatives drove subscriber additions and earnings in Q4.
SunTrust (STI) Poised For Growth Through Cost Saving Plans
The Zacks analyst thinks Suntrust’s efficient cost saving initiatives makes it well positioned for improved profitability. However, a concentrated loan portfolio may hurt financials in the near term.
Integra (IART) Saw a Y/Y rise in Q4 Sales, Headwinds Remains
The covering analyst thinks Q4 sales grew on balanced organic growth across all segments. However, rising operating costs and currency woe pulled the share price down than the broader industry.
Fastenal’s (FAST) Initiatives to Spur Growth, Margins Weak
The Zacks analyst believes that Fastenal’s cost-control initiative and more vending machine installations will drive growth.
Exelixis (EXEL) Reports Q4 Earnings, Focuses on Cabometyx Launch
The covering analyst believes that the company will focus on the launch of Cabometyx in the U.S., which is likely to boost revenues in 2017.
New Upgrades
Haynesville Shale Program to Drive Comstock (CRK) Growth
Comstock’s large acreage position in the prolific Haynesville Shale play and its low-cost structure has made the Zacks analyst turn bullish on the E&P company.
Altra Industrial (AIMC) Up to Buy on Robust Q4 Earnings
Altra Industrial’s Q4 earnings exceeded the year-ago figure and the Zacks Consensus Estimate by 13.9% and 20.6%, respectively; on robust sales volume, sound pricing conditions and greater operational
Monsanto (MON) Upgraded to Buy on Robust Growth Drivers
The covering analyst believes that Monsanto is poised to enhance its competency on Bayer’s buyout deal , greater innovation and sturdy market response for existing crop-yield boosting solutions.
New Downgrades
Cabela’s (CAB) Misses Q4 Earnings, Hurts Investor Sentiment
Cabela’s fourth-quarter fiscal 2016 earnings and sales missed estimates. The Zacks analyst think soft economic recovery, deceleration in sporting goods sales and stiff competition hurt its performance
IMAX Corp’s (IMAX) Q4 Earnings & Sales Fall Y/Y
Though pleased with the company’s outperformance, the covering analyst is concerned about bottom-line contraction due to higher costs. The top line was hurt due to dismal box-office revenues.
Adobe (ADBE) Hurt by Lower End Market Demand
The Zacks analyst believes that lower end-market demand as a result of weak global economic conditions could impact Adobe.
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Microsoft Corporation (MSFT): Free Stock Analysis Report
Monsanto Company (MON): Free Stock Analysis Report
Fastenal Company (FAST): Free Stock Analysis Report
Canadian National Railway Company (CNI): Free Stock Analysis Report
BP p.l.c. (BP): Free Stock Analysis Report
Adobe Systems Incorporated (ADBE): Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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