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Top Analyst Reports for Netflix, PNC Financial & Mondelez

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Thursday, March 29, 2018

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 Netflix (NFLX - Free Report) , PNC Financial (PNC - Free Report) and Mondelez (MDLZ - Free Report) . 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 >>>

Buy-rated Netflix’s shares have increased +48.9% over the last three months, significantly outperforming the Zacks Broadcast Radio and Television industry’s gain of +12.7% during the same period. The company’s efforts to attract viewers through investing in more regional programming are leading to robust addition of international subscribers.

The company remains confident of adding more subscribers as the trend of binge viewing is catching up fast. Netflix now has 117.58 million subscribers globally. The Zacks analyst thinks subscriber additions and expanding content portfolio are the key catalysts that will help Netflix to sustain growth going forward.

However, increasing market spends and higher investments on original/acquired content will continue to hurt profitability, at least in the near term. Rising competition is also a major concern.

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

Shares of PNC Financial have outperformed the Zacks Major Regional Banks industry over the last six months, increasing +10.6% vs. +3.8%. Further, the company has an impressive earnings surprise history. It hasn’t missed the Zacks Consensus Estimate for earnings in any of the trailing four quarters.

The Zacks analyst likes the company’s efforts to generate positive operating leverage through its cost-saving initiatives. Also, its focus on enhancing shareholders’ value through strategic acquisitions is encouraging. Further, efforts to expand middle market lending franchise and investments in digital products and services bode well for the company. Though, the company’s capital deployment activities do not seem sustainable, a strong balance sheet position keeps it well poised for growth.

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

Mondelez's shares have lost -1.2% over the last six months, outperforming the -6.9% decline of the Zacks Food Preparation industry. The Zacks analyst likes Mondelez’s attractive portfolio of iconic brands, commanding presence in impulsive categories and fast-growing emerging markets. Mondelez’ margins have remained constantly strong backed by cost savings and productivity gains.

Earnings estimates for 2018 and 2019 increased 3.8% and 4.7%, respectively, over the last 60 days, reflecting analysts’ confidence in the company’s future earnings. However, Mondelez’s volumes have been hurt since 2014 by the elasticity impact from higher pricing and category weakness because of soft consumer demand.

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

Other noteworthy reports we are featuring today include Enbridge (ENB - Free Report) , Baxter (BAX - Free Report) and Red Hat .

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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>>>

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