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Research Daily

Thursday June 29 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 Halliburton (HAL), Boston Scientific (BSX), and Anheuser-Busch (BUD).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 >>>

Halliburton’s shares have suffered this year, as have shares of all oil-related companies, to reflect the commodity's price slide and uneven outlook. That said, it has done better than its peers (the stock is down -22.3% in the year-to-date period vs. -26.5% decline for the Zacks Oil & Gas-Field Services industry), reflecting improved utilization on the back of surging North American rig count. Cost saving initiatives undertaken during the downturn have also helped the company navigate a difficult operating environment. However, sluggish international outlook – reflecting lower activity and pricing pressure – is expected to dampen investor confidence. Moreover, with the failure of BHI acquisition, HAL had to book a massive $3.5 billion in breakup charges that stretched its balance sheet. The Zacks analyst thinks investors should wait for a better entry point before buying shares in HAL.

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

Shares of Boston Scientific have outperformed the Zacks Medical - Products industry in the year-to-date period, gaining +30% vs. +20.9%. The company is leaving no stone unturned to strengthen its core businesses and is investing in innovations and global markets. Boston Scientific recently received CE mark for its Vercise Gevia DBS System which is expected to boost its European business. The favorable clinical BT study is also encouraging. Increased top line guidance for 2017 also buoys optimism. On the flip side, while an adverse foreign exchange situation continues to pose challenges, the Zacks analyst thinks the company’s recall of one of its prime products, the Lotus range of heart devices is a major concern. Also dull defibrillator sale within core CRM continues to remain a drag for the overall growth.

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

Anheuser-Busch’ shares have underperformed the Zacks Beverages - Alcohol industry over the last three months, gaining +1.7% vs. an increase of +2.2%.  The Zacks analyst likes the company’s robust brand portfolio and solid geographical reach. The company’s focus on developing near beer alternatives, expanding in the craft beer space and undertaking innovations are other positives. Moreover, the company seeks growth via mergers and acquisitions, as evident from its Sab Miller buyout, after which it is likely to control about one-thirds of the beer industry. AB InBev’s last reported quarter marked its fifth straight earnings miss, as results were hurt by currency headwinds and persistent weakness in Brazil. Also, estimates have declined, since management projected increased cost of sales for 2017. Additionally, a tough macroeconomic environment and volatility in some core regions remain concerns for the company. (You can read the full research report on Anheuser-Busch here >>>).

Other noteworthy reports we are featuring today include Hershey (HSY), Kraft Heinz (KHC) and Genuine Parts (GPC).

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 11X worse than the market.  See these critical buys and sells free >>   

Brian Hamilton

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>>>

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