- 18 ноября 2017, 01:09
- Zacks Investment Research
Friday, November 17, 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 Cisco (CSCO), Dominion Energy (D) and Petrobras (PBR). 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 >>>
Cisco’s shares have outperformed the Zacks Networking industry on a year to date basis, gaining +18.7% vs. +17.2%. The company’s results have been negatively impacted by weak switching and router revenues. Top-line continues to hurt by intense competition from several smaller players and challenges in the emerging markets.
However, acquisitions contributed strongly to top-line growth. Management provided positive top-line guidance for second-quarter fiscal 2018 based on order strength and improving traction of the subscription-based model. The Zacks analyst thinks the company’s expanding footprint in the rapidly growing security market presents significant growth opportunity.
Additionally, partnerships with Telenor, Apple, IBM and Microsoft are positive, in our view. The company's recently announced collaboration with Google Cloud to offer hybrid cloud solution is a key catalyst. The planned acquisition of Broadsoft will boost company's recurring revenue base.
Shares of Dominion Energy have gained +4.1% over the last three months, outperforming the Zacks Electric Power industry, which has increased 2.9% over the same period. The company reported mixed results in the third quarter, with earnings topping expectations but total revenues lagged the same. Dominion Energy is benefiting from its regulated growth projects and synergies from Questar acquisition. Dominion’s Greensville County Power Station and Cove Point Liquefaction project are proceeding on time and budget and are likely to boost the company’s performance over the long term.
The company’s expansion of electric transmission, natural gas facilities and midstream assets are strong positives. However, Dominion Energy’s near term prospects and earnings will be adversely impacted due to lower solar investment tax credit, higher PJM electric capacity expenses and lower earnings from Cove Point due to the roll off of one of its import contracts.
Petrobras' shares have outperformed the Zacks Emerging Markets Integrated Oil industry over the last one year, gaining +14.3% vs. +9.1%. Petrobras is poised to benefit from Brazil’s economic growth and huge pre-salt oil reserves. The Zacks analyst likes the company’s strong pipeline of development projects and impressive exploration successes.
Petrobras’ focus on cost improvement measures and divestment of non-core assets will help it revive its financial health. However, though the company is making successful efforts to trim its massive debt loads, it still has a leverage of 53% which is cause for concern.
Petrobras ADRs continue to struggle, reflecting lingering issues pertaining to the money-laundering scandal that has scarred its credit metrics. Therefore, we take cautious stance on the prospects of the stock.
Other noteworthy reports we are featuring today include Chevron (CVX), Progressive (PGR) and KLA-Tencor (KLAC).
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Today's Must Read
Per the Zacks analyst, Nektar has a strong pipeline, with many updates lined up. However, it's PEGylation platforms is subject to competition which may hamper company's prospects in the near-term.
Per the Zacks analyst, continued rise in assets under management are expected to keep supporting Invesco's revenue growth in the near-term.
The Zacks analyst believes Orbital ATK's ability to churn out new products, resulting in new orders boosting its backlog.
Per the Zacks analyst, CBRE Group will ride high on solid organic growth in its three global regions, expanding occupier outsourcing business, strategic acquisitions and healthy balance sheet.
The Zacks analyst believes that KLA-Tencor's complete yield management solutions help keep its revenues more stable than other equipment suppliers.
Per the Zacks analyst, Progressive benefits from improving premiums, sturdy policies in force and solid retention ratio given compelling product portfolio.
Per the Zacks Analyst, Highwoods Properties' assets in the best business districts will likely enjoy steady demand.
Stronger refining margins in the U.S., together with restoration of positive free cash flow has made the Zacks analyst turn bullish on Chevron.
Per the Zacks analyst, Stratasys' sustained focus on launching products like F123 Series and strategic 3D printing partnerships with the likes of Airbus and Boeing will drive long-term growth.
Per the Zacks analyst, improving premiums continue to boost CNA Financial's revenues, thereby resulting in the company's overall growth.
Per the Zacks analyst, lower international order growth for commercial turboprops at the Aviation business segment, has been affecting Textron's overall sales growth.
Per the Zacks analyst, the company has no approved product in its portfolio and is highly dependent on its collaboration partners for the development of its candidates, which remains a concern.
The Zacks analyst notes that rising wages and costs related to initiatives could weigh on Cracker Barrel's profits, amid an already challenging sales environment in both retail and restaurant spaces.
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Progressive Corporation (The) (PGR): Free Stock Analysis Report
Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report
KLA-Tencor Corporation (KLAC): Free Stock Analysis Report
Dominion Energy Inc. (D): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
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