Today's Must Read
Thermo Fisher (TMO) Enters CDMO Space, Gains on Buyouts
China Life's (LFC) Investment Results Improve, Costs Hurt
Thursday, September 7, 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), Thermo Fisher (TMO) and China Life Insurance (LFC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Comcast’ shares have gained +11.8% over the last six months, outperforming the Zacks Cable Television industry which has gained +10.7% over the same period. Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand and is venturing into residential solar programs with a 40-month deal with Sunrun.
Further, the company is working towards 5G network deployment and continues to roll out its DOCSIS 3.1-based internet services to Comcast Business customers. Comcast has also forayed into the over-the-top video delivery market with the launch of its Internet TV service – Stream. Through these initiatives, Comcast aims to check customer churn and provide viewers with more streaming options.
However, tough competition, consolidation-related woes, mounting programming costs and loss of customer base act as near-term risks for Comcast. Competitive threat from online streaming service providers remains a concern.
Shares of Buy-rated Thermo Fisher have outperformed the Zacks Medical sector (up more than +26.2% over the last one year vs +5.3%). The Zacks analyst is upbeat about the company gaining entry into the CDMO market through the recent acquistion of Patheon for $7.2 billion. A series of product launches along with major progress in precision medicine initiatives is also encouraging.
Thermo Fisher’s acquisition of FEI Company has already started to boost its analytical instruments portfolio. The company also opened Center of Excellence for electron microscopy in Saudi Arabia. The raised 2017 guidance is all the more encouraging indicating the fact that this overall bullish trend will continue through the year.
China Life Insurance’s shares have outperformed the Zacks Life Insurance industry year to date, gaining +21.8% vs. +15.8%. The Zacks analyst likes the company’s robust market position and organic growth initiatives. Its operational efficiency is also reflected by its product upgrades and premium growth over the last many quarters. China Life’s solid investment management also continues to impress.
The company has the most extensive distribution and service network among all insurance companies operating in China. However, it suffers from rising expenses that have been pushing the bottom line down over last few quarters. Its severe exposure to market risk is another concern. (You can read the full research report on China Life Insurance here >>>).
Other noteworthy reports we are featuring today include Deere (DE), DISH (DISH) and American Airlines (AAL).
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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>>>