Monday, October 24, 2016
Today's Research Daily features new research reports on 17 major stocks, including Intel (NASDAQ:INTC), Microsoft (NASDAQ:MSFT), McDonald’s (MCD) and Schlumberger (SLB).
Intel shares have lost ground following the quarterly release, where they handily beat top- and bottom-line estimates and showed solid gains all business areas, but guidance came as a disappointment, particularly with respect to margins as well as capex. The market's reaction notwithstanding, the Zacks analyst likes the momentum in the data center group, where macro factors are impacting the enterprise side even as cloud prospects remain strong. Buy-rated Intel’s investments in IoT, security and memory could also pay off this year. (You can read the full research report on Intel here>>)
Market participants loved Microsoft’s impressive cloud-driven quarterly earnings report. The analyst likes the software major’s continuing enterprise strength, benefits from the Office 365 subscription model, strong growth prospects of Azure and promising new products. Additionally, the expansion of Microsoft HoloLens in 6 new markets will improve the company's position in the augmented and virtual reality space. Further, the completion of the LinkedIn (NYSE:LNKD) acquisition will boost Microsoft's presence in the social media market. (You can read the full research report on Microsoft here>>)
McDonald’s shares have struggled lately as a result fo the tough operating environment for the restaurant space in general; the entire space has been struggling lately. However, the fast food giant reported encouraging third-quarter adjusted earnings on the back of strong comps growth. The analyst likes the manner in which the company is trying to strengthen its position via various sales and digital initiatives like menu innovation and introduction of value meals. However, higher labor costs, along with currency headwinds, might hurt profits. (You can read the full research report on McDonald’s here>>)
Schlumberger shares have done reasonably well this year on the back of momentum in oil prices, but it has lagged Halliburton (NYSE:HAL) and other U.S. centric operators given its relatively lower footprint in the region. These issues notwithstanding, the analyst likes the Schlumberger-Cameron merger, which will support technology-driven growth going forward. However, the recent prediction by the OPEC and IEA of an oversupplied crude market till 2017 raises concerns. (You can read the full research report on Schlumberger here>>)
Other noteworthy reports we are featuring today include American Express (NYSE:AXP), General Electric (NYSE:GE) and Harley-Davidson’s (HOG).
Free Access: All Zacks Research Reports
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You can find all of today's stock research reports here>>
Sheraz Mian
Director of Research
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Today's Must Read
Featured Reports
Citigroup's (NYSE:C) Q3 Earnings Show Continued Cost Control
The Zacks analyst believes that though Citigroup's Q3 earnings benefited from continued cost control and high trading income, low rate scenario and regulatory pressure remain near-term concerns.
Interactive Brokers' (IBKR) Q3 Earnings Fail to Impress
The covering analyst thinks Interactive Brokers' Q3 earnings lagged estimates due to dismal performance of the Market Making segment. Yet, a notable rise in net interest income acted as a positive.
Seagate (STX) Beats on Q1 Earnings, Revenues Decline Y/Y
The Zacks analyst thinks Seagate's first-quarter results benefited from strong demand for hard-disk drives and lower operating expenses.
Prologis' (PLD) Q3 Earnings Benefit From Occupancy Gains
The Zacks analyst thinks Prologis' Q3 earnings benefited from revenue growth and occupancy gains. Yet, rise in supply and interest rate issues continue to be its lingering concerns.
Harley-Davidson's (HOG) Q3 Earnings Beat, Revenues Miss
While earnings surpassed estimates, revenues missed due to lower motorcycle shipments.
Crown Castle (CCI) Raises Financial Outlook for 2016
The covering analyst believes that Crown Castle's extensive tower portfolio, increased demand for mobile infrastructure, strong business outlook and healthy leasing activity are major positives.
Xilinx's (NASDAQ:XLNX) Q2 Earnings Increase on Strong Revenues
Xilinx's strong second quarter 2017 results mainly benefited from higher demand for 28-nm, 20-nm and 16-nm nodes.
New Upgrades
Amphenol (NYSE:APH) Surpasses Q3 Earnings Estimates, View Up
Amphenol reported strong third-quarter results with healthy year-over-year increases in both earnings & revenues. The company also raised its outlook for 2016 on the back of favorable growth dynamics.
American Express (AXP) Beats on Q3 Earnings, Guides Up
The Zacks analyst believes that a number of growth initiatives, cost reduction efforts, international billings growth, reduction in expense will drive long term growth at the company.
Universal Forest's (UFPI) Organic, Inorganic Prospects Solid
Universal Forest will likely gain from new customers, solid product portfolio and acquisitions of Idaho Western and idX Corp. in 2016. Also, a 7% hike in semi-annual dividend will work in its favor.
New Downgrades
GE (GE) Plagued by Macroeconomic Woes, Trims View on Lower Profit
General Electric recorded lower Industrial segment profit despite stringent cost-cutting and simplification initiatives. This forced the company to lower its organic revenue growth guidance for 2016.
DST Systems (DST) Beats on Q3 Earnings; Misses on Revenues
Though DST Systems reported solid earnings, persistent decline in registered accounts, consolidation in the U.S. financial services market and stiff competition are headwinds, per the Zacks analyst.
PulteGroup (NYSE:PHM) Earnings Meet Estimates, Margins Down
The Zacks analyst thinks gross margin compression due to rising labor costs can keep housing momentum in check for the remainder of 2016.
SCHLUMBERGER LT (SLB): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
MCDONALDS CORP (MCD): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
HARLEY-DAVIDSON (HOG): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis Report
AMER EXPRESS CO (AXP): Free Stock Analysis Report
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Zacks Investment Research