Friday, December 13, 2019
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 Danaher (DHR), Petrobras (PBR) and Fiserv (FISV). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Danaher’s shares have outperformed the Zacks Diversified Operations industry year to date (46.8% vs. 29.1%). The Zacks analyst believes that sturdier demand for innovative products, effective implementation of Danaher Business System and shareholder-friendly policies will likely bolster profitability going forward.
Also, the acquisition of the BioPharma business will complement the company’s Life Sciences segment. For fourth-quarter 2019, the company expects adjusted earnings of $1.32-$1.35 and core sales growth of 4.5%. The company will soon dispose of its remaining 80.6% stake in Envista through an exchange offer. Moreover, the company is exposed to forex woes, high debts, rising costs and others.
Shares of Petrobras have gained 6.5% in the past three months against the Zacks Emerging Markets Integrated Oil industry’s rise of 1.4%. The Zacks analyst believes that Petrobras’ cost containment efforts and ambitious divestment plans have been helping the firm to improve its credit ratings.
The company boasts of an impressive portfolio, particularly in Brazil’s pre-salt reservoirs and projects strong average annual output growth till 2024.
Meanwhile, the company has revved up its five-year divestment plan of $75.7 billion to streamline portfolio and sharpen focus on other profitable segments for achieving top-tier results. However, the fact that Petrobras is still reeling under huge debt burden cannot be overlooked. Years of mismanagement and corruption have also taken their toll. Hence, the company warrants a cautious stance at the moment.
Fiserv‘s shares have gained 29.1% over the past six months against the Zacks Financial Transaction Services industry’s rise of 7.8%. The Zacks analyst believes that Consistency in rewarding shareholders through share buybacks boosts investors’ confidence and positively impact earnings per share.
The company enjoys a dominant position in the financial and payments solutions business on the back of broad and diverse customer base, and continued technology upgrades. Its diversified product portfolio helps attract a steady flow of customers. Acquisitions help boost its market share and customer base.
On the flip side, maintaining strong and long-term client relationships is a difficult task amid stiff competition. High debt may limit the company’s future expansion and worsen its risk profile. Multiple buyouts result in integration risk.
Other noteworthy reports we are featuring today include CME Group (CME), Chubb (CB) and ConocoPhillips (COP).
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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 Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today’s Must Read
Per the Zacks analyst, its growing top-line driven by organic growth, steady market position and diverse product lines has led to significant growth. However, escalating expenses remain a concern.
Per the Zacks analyst, several buyouts have helped Chubb in domestic as well as international expansion, and aided revenue growth.
The Zacks analyst expects ConocoPhillips to gain from unconventional resources in the prolific Eagle Ford shale play.
Allergan’s key products like Botox are supporting sales. Potential generic competition for Restasis, fears of new competition to Botox and recent pipeline setbacks is a concern per the Zacks analyst.
Per the Zacks analyst, Schlumberger’s attractive reservoir and well technologies help it to outperform its peers.
Per the Zacks analyst, Advanced Micro Devices is benefiting from robust adoption of latest EYPC, Ryzen and Radeon processors.
Per the Zacks analyst, Activision’s foray into e-sports and user base expansion from strength in popular franchises bodes well for its growth prospects.
Per the Zacks analyst, Nektar’s strong pipeline candidates have helped it to attract funds through collaborations with large pharma companies. Moreover, several candidates are progressing well.
Per the Zacks analyst, Cohen & Steers’ revenues will continue to grow driven by robust assets balance, diverse product offerings and investment strategies. Its capital deployments remain impressive.
The Zacks analyst thinks that the company will benefit from a diverse customer base in its seating business and new business wins in truck, SUV and luxury platforms.
The Zacks analyst is worried that Caterpillar’s results will bear the brunt of the ongoing slowdown in the manufacturing sector and higher input costs due to tariffs.
The Zacks analyst is concerned as Eni’s balance sheet has more debt exposure than the composite companies in the industry. Weak refining operations have also been hurting the firm’s bottom line.
Per the Zacks analyst, lower high-value product volumes due to soft demand and weaker standard stainless sheet demand will hurt the company’s FRP unit. Its elevated debt level is another concern.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.