Friday, August 30, 2019

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features updated research reports on 16 major stocks, including Boeing (BA), Starbucks (SBUX) and 3M (MMM). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.

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

Boeing’s shares have gained +12.5% year to date, underperforming the Zacks Aerospace & Defense industry, which has increased +26.6% during the same time period. The Zacks analyst stresses that Boeing remains the largest aircraft manufacturer globally in terms of revenues, orders and deliveries, and one of the major aerospace and defense contractors.

Boeing expects the commercial fleet to be fueled by sustained annual growth in commercial passenger traffic along with a big wave of retiring, old planes. Its proposed joint venture with Embraer is expected to strengthen Boeing’s commercial business significantly.

However, the commercial business suffered a major setback lately due to lower 737 deliveries, following the 737 Max product line's grounding and subsequent costs associated with it. Consequently, its revenues, earnings and cash flow position were affected significantly.

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

Shares of Starbucks are up +37.9% over the past six months, outperforming the Zacks Food & Restaurants industry, which is up +21% over the same period. The Zacks analyst thinks the momentum is likely to continue as the company reported solid third-quarter fiscal 2019 earnings and also raised its full-year view.

Notably, earnings surpassed the estimates in each of the trailing five quarters. Robust Americas and CAP comps too bode well. The company now anticipates global comps growth of nearly 4%. Non-GAAP EPS is expected to be $2.80-$2.82, up from $2.75-$2.79 guided previously.
 

Meanwhile, Starbucks' business is rapidly growing in China, courtesy of innovative store designs and the success of the MSR program. Also, operating fundamentals such as solid global footprint, successful innovations, best-in-class loyalty program and digital offerings are encouraging. However, operating margin contraction over the past few quarters has been a concern.

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

3M’s shares have lost -22.7% in the past six months, underperforming the Zacks Diversified Operations industry, which has declined -4.6% over the same period. The Zacks analyst thinks 3M stands to gain from efforts to innovate products, solid demand, restructuring actions and shareholder-friendly policies over the long run.

Its acquisition of the technology business of M*Modal is benefiting the Health Information Systems business. Also, divestments of advanced ballistic-protection business (not yet complete), and the gas and flame detection business (closed in August 2019) will help the company concentrate on more profitable businesses.

Also, it faces risks from forex woes (likely to impact sales by 1%), high tax rates, rising costs and restructuring charges. For 2019, the company predicts earnings to be $9.25-$9.75 per share, down from $10.46 recorded in 2018.

(You can read the full research report on 3M here >>>).

Other noteworthy reports we are featuring today include Restaurant Brands (QSR), Deere (DE) and Dollar General (DG).

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Note: Our Director of Research 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>>>