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Research Daily

Wednesday, August 23, 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 Duke Energy (DUK), Stryker (SYK) and Sanofi (SNY). 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 >>>

Duke Energy shares have outperformed the broader market as well as the peer utilities space in the year-to-date period (it is up more than 15%). Duke Energy’s second-quarter 2017 earnings missed expectations and also declined from year-ago figure. The downturn was mainly due to the absence of International Energy that was sold in December 2016, less favorable weather and higher income tax expense.

However, revenues surpassed the consensus mark and improved year over year. The Zacks analyst likes the company’s hefty investment plans for the next five years. These plans are likely to improve its business by generating cleaner energy and bolstering its renewable asset base.

Moreover, Duke Energy pursues a systematic asset divestment initiative that buoys optimism. Nevertheless, the company faces challenges from severe weather conditions and natural calamities like hurricanes, which may result in breakdown and damage its infrastructure.

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

Shares of Stryker have gained +13.2% over the last six months, outperforming the Zacks Medical Products industry, which has gained +7.5% over the same period. Stryker exited the second quarter on a solid note, beating expectations on both counts. Solid performance in the MAKO platform drove revenues.

The Zacks analyst likes Stryker’s upbeat guidance for the full year and its diversified product portfolio. Continued strong demand for hemorrhagic and ischemic stroke products and neuro-powered instruments boosted sales in the neurotechnology segment.

However, volatility in foreign currency exchange is likely to impede revenue growth. Stryker also faces supply-side headwinds and has been grappling with issues in the spine business for long. Also, China might prove to be a challenging market.

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

Sanofi’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry year to date, gaining +22.5% vs. +13.5%. Sanofi reported in-line earnings in Q2 but missed sales expectations. However, the company raised full year earnings forecast.

The Zacks analyst likes Sanofi’s focus on streamlining its business and pursuing business development deals. The company has several new products in its portfolio and candidates in its pipeline that can contribute to long-term growth. New drugs like Aubagio and Lemtrada are likely to continue doing well. Sales prospects of Dupixent are another positive, which could prove to be an important growth driver. The recent FDA and EU approval of Kevzara for rheumatoid arthritis is also encouraging.

However, headwinds include a bleak outlook for the Diabetes franchise, generic competition for many drugs and slower-than-expected uptake of new products like Praluent.

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

Other noteworthy reports we are featuring today include PPL Corp (PPL), Coty (COTY) and Viacom (VIAB).

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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>>>

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