Thursday, April 6, 2017

Today's Research Daily features new research reports on 16 major stocks, including Halliburton (HAL), Public Storage (PSA) and Norfolk Southern (NSC).

Halliburton shares have gained almost +37.5% in the last one year, handily outperforming both the Zacks Oil & Gas-Field Services industry and bigger rival Schlumberger that registered increases of +13.8% and +8.7%, respectively, over the same time period. The Zacks analyst likes the company’s intention of focusing on international markets instead of remaining confined only to North America.

Additionally, the world’s second-largest oilfield-services provider managed to beat expectations in each of the last four quarters through effective cost management. However, increasing U.S production following the gathering of producers on the oil patch has offset the crude price improvement to some extent. This could lead to lower activity and limit demand for Halliburton's goods and services. (You can read the full research report on Halliburton here.)

Shares of Public Storage have outperformed the Zacks categorized REIT and Equity Trust – Other industry over the past six months, gaining +4.8% vs +3.9%. However, its first-quarter and full year 2017 funds from operations (FFO) per share estimates have moved down over the past seven days. Public Storage is a recognized and established name in the self-storage industry in the U.S. and the Zacks analyst likes its acquisition and expansion efforts.

Also, the self-storage industry is expected to continue experience solid demand backed by favorable demographic changes. However, rising supply in a number of its markets is a concern. Rate hike also adds to its woes. (You can read the full research report on Public Storage here.)

Norfolk Southern’s shares have gained 43.2% over the last one year, outperforming the Zacks categorized Transportation-Rail industry’s increase of 36.5% over the same time period. In fact, shares of Norfolk Southern have outshined those of larger rival Union Pacific, which appreciated 36.8% in the same time span. The Zacks analyst likes Norfolk Southern's efforts to cut costs in order to boost the bottom line. First-quarter 2017 results, scheduled for Apr 26, are likely to be benefited by the company’s cost-cutting measures.

Estimates for the first quarter have been rising over the last 30 days. The projection that coal volumes will increase in 2017 on the back of favorable conditions and the move to hike quarterly dividend are major positives. However, the company’s high debt level is a major concern. (You can read the full research report on Sprint here.)

Other noteworthy reports we are featuring today include Equinix (EQIX), Welltower (HCN) and UBS Group (UBS).

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Mark Vickery

Senior Editor

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 >>>