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Research Daily

Tuesday, December 13, 2016

Today's Research Daily features new research reports on 16 major stocks, including Barclays (BCS), Netflix (NFLX) and NIKE (NKE).

Barclays’ shares significantly outperformed the Zacks categorized Foreign Bank sector over the past three months, surging 28.2% versus the sector’s gain of 12.5%. The analyst thinks that this Zacks Rank #1 (Strong Buy) bank is on track to achieve targeted cost savings this year, driven by continued divestiture of non-core operations world-wide.

These are expected to improve operational efficiency and lower expenses, thereby leading to improved profitability over time. Further, Moody’s long term ratings upgrade enhances investors’ confidence in the stock. (You can read the full research report on Barclays here.)

Netflix’s shares outperformed the Zacks categorized Broadcast Radio/TV sector over the year-to-date frame, jumping 7.4% versus the sector’s gain of 0.7%. The analyst likes its growing portfolio of original content with special emphasis on kids and family content, which is expected to boost the company’s growth in the near future.

Moreover, it remains focused on international expansion as it battles slowing domestic subscriber growth to solidify presence in its operating markets. However, investments in original/acquired content remain a drag on profitability at present.  In addition, stiffening competition from peers can pose some challenges. (You can read the full research report on Netflix here.)

NIKE’s shares have plunged 17.5% year-to-date, underperforming the Zacks Shoes & Retail Apparel sector which has lost 13.4% over the same period. Growing competition in the space from Under Armour and Adidas remained one of the major causes for the underperformance. Also, inventory position depicted softness in Nike’s merchandise sales in the preceding quarter, posing concerns.

However, the analyst likes the company’s confidence on its growth drivers like efficient supply chain, a great sync between digital and physical worlds, constant innovations and strategic investments. Also, Nike’s positive surprise history reveals that it has been gaining from its customer-centric approach, innovative products and strong portfolio. (You can read the full research report on NIKE here.)

Other noteworthy reports we are featuring today include Chubb (CB), Biogen (BIIB) and China Petroleum & Chemical (SNP).

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Mark Vickery

Senior Editor

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