Today's Must Read
VMware (VMW) Drives on License Bookings, Hybrid Cloud & SaaS
Dividend Hike, Falling Costs Lift Southwest Airlines (LUV)
Thursday June 8, 2017
Today's Research Daily features new research reports on 16 major stocks, including General Motors (GM), VMware (VMW), and Southwest Airlines (LUV). 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 >>>
General Motors shares have been strong performers over the past year (the stock is up +17% vs. +11.4% for the Zacks Auto sector & -16.6% for Ford), though they have struggled lately. The Zacks analyst likes the company’s capital allocation strategy, investments in plants in the U.S. and emerging markets, product launches and focus on technology development. Moreover, the company's focus on capital deployment is expected to boost shareholder returns. However, the automaker is under pressure due to lower U.S. vehicles sales in 2016, a recent settlement related to the 2014 ignition switch recall and a large fine by China for monopolistic pricing behavior. General Motors’ quarterly earnings estimate has been going up lately.
VMware shares have gained +17.9% year to date, underperforming the Zacks Software industry (up +21.5%) but outperforming the S&P 500 (up +7.2%). VMware’s revenues continue to register strong growth driven by its innovative product offerings like NSX, AirWatch, vSphere and vSAN. The Zacks analyst likes its innovative product pipeline, strategic partnerships, frequent contract wins and robust international sales. The company continues to benefit from its strength in the virtualization and hybrid cloud market. VMware’s impressive first-quarter results and positive fiscal year guidance (up from the previous guidance) driven by expanding product portfolio, partnerships and continuing enterprise deal wins will help the stock maintain momentum in the rest of fiscal 2018. However lackluster IT spending and mounting competition are headwinds.
Southwest Airlines shares have been standout performers this year; they are up +19.5% in the year-to-date period vs. +11.5% gain for the Zacks Airline industry and +8% gain for the S&P 500 index. The stock's positive momentum has been particularly notable since mid-March, which got a boost from the company's quartelry report when it modestly came short of estimates but raised guidance and announced a dividend hike and raised the buyback authorization.
Other noteworthy reports we are featuring today include Johnson Controls (JCI), Intuitive Surgical (ISRG) and ArcelorMittal (MT).
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
Director of Research
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>>>