Wednesday, December 21 2016
Today's Research Daily features new research reports on 16 major stocks, including Pfizer (PFE), Microsoft (MSFT) and Bank of America (BAC).
Pfizer shares have gained +9.5% since results of the presidential election were declared on Nov 8, outperforming the Zacks Large-Cap Pharma industry which has gained +1.7% over the same period. While Pfizer in general and the industry as a whole continues to be weighed down by drug pricing worries, the issue has eased a bit since the election. The analyst emphasizes that Pfizer is strengthening its product portfolio as well as pipeline through acquisitions and licensing deals. A case in point is the Sep 2016 acquisition of Medivation that has strengthened Pfizer’s cancer franchise. Meanwhile, new products like Ibrance should do well and drive revenues. However, headwinds remain in the form of genericization, pricing pressure and rising competition, which will continue to hamper top-line growth. (You can read the full research report on Pfizer here>>>)
Buy rated Microsoft shares lagged the Zacks Tech sector through the fall, but have led the way over the last three months on greater appreciation for the company's reorganization and repositioning. Microsoft's 'cloud' opportunity particularly stands out, with the company generally considered as a leader in this fast-growing space alongside Amazon, Google and others. 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. Further, the anticipated completion of the LinkedIn acquisition will boost Microsoft's presence in the social media market. (You can read the full research report on Microsoft here>>>)
Buy rated Bank of America shares have been one of the biggest beneficiaries of the changed macro backdrop following the election. This changed backdrop includes expectations of faster economic growth and overhaul of the country's tax and regulatory systems. The resulting uptrend in interest rates promises to give bank stocks in general and Bank of America in particular a big boost. No doubt, Bank of America share have been strong performers since the election - up +33.6% since November 8th vs. +21.8% gain for the Zacks Major Banks industry in that time period. (You can read the full research report on Bank of America here>>>)
Other noteworthy reports we are featuring today include Oracle (ORCL), Nike (NKE) and Yahoo (YHOO). You can see all of today's analyst reports here >>>
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Today's Must Read
The Zacks analyst thinks disclosure of the breach and its legal consequences could impact the Yahoo-Verizon deal if the latter finds a material adverse change in the span between signing and closing.
The covering analyst believes that the company's strong position in creative cloud market and continued innovation will continue to drive growth going forward.
The Zacks analyst believes that Broadcom will continue to enjoy synergistic benefits from the merger with Avago, which will drive future profitability.
The covering analyst expects Southern Company to generate steady earnings and dividend growth in the coming years.
The Zacks analyst thinks BlackRock remains on track to expand through various strategic acquisitions, thereby improving revenues.
The covering analyst thinks PetroChina is well-positioned to capitalize on the country's favorable trends but the crude price slump has adversely affected the group's earnings and cash flows.
The Zacks analyst believes that Sanofi has several new products in its portfolio and candidates in its pipeline that can contribute to long-term growth.
The Zacks analyst believes organic growth remains a key strength at Cullen/Frost, as reflected by its revenue growth story. A solid capital position is another positive factor.
The covering analyst thinks the new realignment program is expected to significantly lower Jabil's expenses while maintaining its production capacities, which will be beneficial going ahead.
Lennar posted strong numbers in 2016. The covering analyst stresses Lennar will be able to capitalize on the housing recovery driven by diverse revenue mix and improving SG&A leverage.
The Zacks analyst believes negative currency translation and sluggish demand improvement in some of the end markets poses a serious threat to Eaton's financial performance.
The covering analyst thinks that though charging the commercial users for the Java SE platform seems positive for the company, transition to the cloud remains a drag on the financials at the moment.
The Zacks analyst thinks though NIKE's top and bottom lines beat estimates in second-quarter fiscal 2017, its soft future orders and persistent currency headwinds continues to hurt investor sentiment.
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