Back to top

Top Stock Reports for IBM, Duke Energy & General Dynamics

Read MoreHide Full Article

Tuesday, February 26, 2019

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 IBM (IBM - Free Report) , Duke Energy (DUK - Free Report) and General Dynamics (GD - 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 >>>

IBM’s shares have outperformed the broader market on a year-to-date basis, increasing 22.7% vs the S&P 500’s 11.5% gain. IBM provides advanced information technology solutions, including computer systems, software, storage systems and microelectronics.

The Zacks analyst thinks IBM’s improving position in the hosted cloud, security and analytics bodes well for investors. RedHat acquisition aimed at enhancing hybrid cloud platform is likely to pave the way for IBM's growth prospects. However, softness in Systems revenues and technology & cloud platforms remain a concern.

Stiff competition does not bode well for Storage hardware segment. Strategic imperatives will take some more time to report meaningful growth and offset weakness in the traditional business. IBM’s ongoing heavily time-consuming business model transition to cloud is a headwind. Additionally, ballooning debt levels have been troubling IBM over time.

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

Shares of Duke Energy have outperformed the S&P 500 in the past six months, gaining 11% vs -3.5%. Duke Energy ended the fourth quarter of 2018 on a mixed note. While the company’s earnings missed expectations, revenues surpassed the same.

The company invests heavily in infrastructure and expansion projects. It expects to invest about $37 billion in its overall growth projects in the 2019-2023 time frame. The Zacks analyst thinks this investment plan will drive earnings base growth in the company’s combined electric and gas businesses by approximately 6%, over the next five years.

However, the company faces challenges from severe weather conditions and natural calamities, which may result in breakdowns and damage to its infrastructure. Potential volatility in market prices of fuel, electricity and other renewable energy commodities could create operational risks.

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

General Dynamics’ shares have lost 11.3% in the past six months, underperforming the S&P 500's decrease of 3.5%. General Dynamics boasts a strong position in the U.S. defense space and overseas. The budgetary amendments, which were made last year, have been in favor of the company’s business line.

The Zacks analyst thinks that apart from solid demand for its varied defense products leading to organic growth, a notable acquisition strategy also adds significant value to General Dynamics’ inorganic growth. However, the company is susceptible to interest rate risk related to the issuance of debt.

A material rise in long-term interest rates is a major risk for capital intensive stocks like General Dynamics. With the current U.S. economy being in favor of the expanding interest rate, the credit market may not be too favorable for General Dynamics.

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

Other noteworthy reports we are featuring today include Hewlett Packard (HPE - Free Report) , PACCAR (PCAR - Free Report) and Rockwell Automation (ROK - Free Report) .

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

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>>>

Published in