Today's Must Read
Honeywell (HON) Remains Focused on a Balanced Growth Model
High Inventory & Weak Pricing to Strain General Motors (GM)
Wednesday June 28 2017
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 Comcast (CMCSA), Honeywell (HON), and General Motors (GM).These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Comcast’s shares have been strong performers since the election on hopes of favorable regulatory changes on the net neutrality front (the stock is up +25.6% since November 8th and +13.7% year to date). Comcast's continued momentum reflects the strength in its Cable business and significant improvement in the NBC Universal segment. The company has been taking on the challenge of customer churn and 'cord cutting' head on through its own Internet TV service “Stream” and the incorporation of Netflix services into its X1 platform. Comcast is working towards 5G network deployment and plans to plans to enter the U.S. wireless industry in collaboration with Charter Communications. Plans to start its own wireless service could also make strategic sense by increasing the value of its 'bundle' that adds to customer 'stickiness'.
Shares of Buy rated Honeywell have outperformed the diversified operations industry gaining +14.7% vs. +1.4% in the year-to-date period. The Zacks analyst like the company’s continuing efforts on increasing its presence in high-growth regions. Additionally it is building a robust pipeline of new products and has regularly fine-tuned its portfolio to focus on core businesses. Diligent focus on working capital management, free cash flow generation and a conservative balance sheet remain key positive attributes. Earnings for 2017 are expected to be up 7–10% year over year to $6.90–$7.10 per share on favorable growth dynamics.
General Motors’ shares have underperformed the Zacks Auto Manufacturers-Domestic industry over the last six months, losing -1.6% vs. a gain of +11.5%. General Motors’ annual earnings estimates have been going down lately. The company’s decision to halt sale of cars in India, sale of its South African business and streamlining of its Singapore office are concerns. High inventory level of passenger cars is also a cause for worry. However, the Zacks analyst likes the company’s capital allocation strategy, initiatives to make its vehicles more advanced, safer and fuel efficient and its focus on technology development. Moreover, the company's focus on capital deployment is expected to boost shareholder returns.
Other noteworthy reports we are featuring today include Amazon (AMZN), American Airlines (AAL) and Xcel Energy (XEL).
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Investment Research Coordinator
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>>>