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Top Stock Reports for Comcast, Honeywell & General Motors

Wednesday June 28 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 Comcast (CMCSA), Honeywell (HON), and General Motors (GM).These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Comcast’s shares have been strong performers since the election on hopes of favorable regulatory changes on the net neutrality front (the stock is up +25.6% since November 8th and +13.7% year to date). Comcast's continued momentum reflects the strength in its Cable business and significant improvement in the NBC Universal segment. The company has been taking on the challenge of customer churn and 'cord cutting' head on through its own Internet TV service “Stream” and the incorporation of Netflix services into its X1 platform. Comcast is working towards 5G network deployment and plans to plans to enter the U.S. wireless industry in collaboration with Charter Communications. Plans to start its own wireless service could also make strategic sense by increasing the value of its 'bundle' that adds to customer 'stickiness'.

(You can read the full research report on Comcast here >>>).

Shares of Buy rated Honeywell have outperformed the diversified operations industry gaining +14.7% vs. +1.4% in the year-to-date period. The Zacks analyst like the company’s continuing efforts on increasing its presence in high-growth regions. Additionally it is building a robust pipeline of new products and has regularly fine-tuned its portfolio to focus on core businesses. Diligent focus on working capital management, free cash flow generation and a conservative balance sheet remain key positive attributes. Earnings for 2017 are expected to be up 7–10% year over year to $6.90–$7.10 per share on favorable growth dynamics.

(You can read the full research report on Honeywell here >>>).

General Motors’ shares have underperformed the Zacks Auto Manufacturers-Domestic industry over the last six months, losing -1.6% vs. a gain of +11.5%. General Motors’ annual earnings estimates have been going down lately. The company’s decision to halt sale of cars in India, sale of its South African business and streamlining of its Singapore office are concerns. High inventory level of passenger cars is also a cause for worry. However, the Zacks analyst likes the company’s capital allocation strategy, initiatives to make its vehicles more advanced, safer and fuel efficient and its focus on technology development. Moreover, the company's focus on capital deployment is expected to boost shareholder returns.

(You can read the full research report on General Motors here >>>).

Other noteworthy reports we are featuring today include Amazon (AMZN), American Airlines (AAL) and Xcel Energy (XEL).

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Brian Hamilton

Investment Research Coordinator

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>>>

Featured Reports

New Gen FlexRig Drives Helmerich (HP), Low Utilization Hurts

While the technological drilling expertise including the advanced FlexRig gives Helmerich & Payne an edge, the Zacks analyst is concerned over the low fleet utilization rate due to weak crude prices.

Exelixis (EXEL) Upbeat on Cabometyx, Focus on Label Expansion

Per the covering analyst, a label expansion of the drug will boost growth prospects although competition is stiff.

Xcel's (XEL) Investments to Boost Results, Debts a Concern

The Zacks analyst believes despite Xcel Energy's ongoing investments in infrastructure projects and focus on renewable expansion, its rising debts levels is a cause for concern.

CONMED (CNMD) Rides on Solid Portfolio of Surgical Products

The covering analyst thinks CONMED's diversified surgical product line, consisting of endomechanical offerings, electrosurgical council and 2D Arthroscopy video system, will boost its top line.

McCormick's (MKC) CCI Program Likely to Improve Margins

Per the Zacks analyst, the program may help improve margins and streamline operations.

Universal Health (UHS) Grows on Acute Care, High Debt Ails

Per the Zacks analyst, although Universal Heath's solid Acute Care segment bolsters revenue growth along with the less-paced behavioral segment, continuously rising debt and expenses drain margins.

Affiliated Managers (AMG) Asset Inflow Offsets Revenue Strain

Per the Zacks analyst, Affiliated Managers is all set to improve profitability given the strong asset inflows and global distribution capability.

New Upgrades

Teradyne's (TER) Diversified Portfolio a Major Growth Driver

The Zacks analyst believes that strong demand in System Test Business, opportunities in the high-growth wireless test market, solid execution and continuous design wins are positives for Teradyne.

Olive Garden Remains Key Revenue Driver for Darden (DRI)

Per the covering analyst, initiatives at Olive Garden like simpler kitchen system, menu innovation, technological enhancements and the To-Go business poise Darden well for solid revenue growth ahead.

Unit Revenue Growth Buoys American Airlines Group (AAL)

The Zacks analyst likes the company's performance with respect to unit revenues. The metric's impressive performance is likely to continue. Efforts to modernize its fleet are also encouraging.

New Downgrades

Texas Instruments (TXN) Faces Competitive Auto Chips Space

The Zacks analyst believes that rising competition particularly in auto chips is currently a major headwind for Texas Instruments. Negative currency effect and a high debt load also pose concerns.

Low Iron Ore Pricing, Downbeat Outlook Weigh on Cliffs (CLF)

The covering analyst thinks that depressed iron ore prices will be a drag on Cliffs' margins. The company has also cut its profit outlook for 2017 due to lower expected iron ore pricing.

Amazon's (AMZN) Bottom Line to Be Hit by Saturation in Prime

The Zacks analyst believes that Prime saturation in the U.S. along with increased operating expenses will keep Amazon's bottom line under pressure.

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Xcel Energy Inc. (XEL): Free Stock Analysis Report
Honeywell International Inc. (HON): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
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