Today's Must Read
Marriott (MAR) Solid on Starwood Buyout & Rapid Expansion
Intuitive Surgical (ISRG) Gains from Procedural Business
Tuesday, November 14, 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 Activision (ATVI), Marriott (MAR) and Intuitive Surgical (ISRG). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Buy-rated Activision’s shares have been strong performers this year, with the stock up +76.2% in the year-to-date period vs. the Zacks Toys, Games and Hobbies industry's +48.7% gain in that same time period. Activision's third quarter 2017 results benefitted from increasing digital revenues, King Digital buyout and strength in franchises. Activision also raised guidance for the full year.
The Zacks analyst likes the company’s attempts to become a broad-based media company. Apart from launching a movie studio and consumer products division, the company is also strengthening its presence in the lucrative e-sports market.
Activision had added twelve teams in the e-sports league for its newest franchise, Overwatch. However, hit driven and competitive nature of the video game industry begets caution.
Shares of Buy-rated Marriott have outperformed the Zacks Hotels industry in the year-to-date period (the stock is up +45.6% vs. +16.2% gain for the industry). Marriott’s third-quarter 2017 adjusted earnings exceeded expectations and rose 26.4% year over year.
Notably, with the acquisition of Starwood, Marriott became the world's largest hotel company. In fact, this buyout is likely to result in a bigger brand with increased scale and a robust development pipeline in the long run. The Zacks analyst likes Marriott’s rising North-American business, sizeable international exposure and attractive brand-position.
These factors are likely to continue to drive growth. Yet, lingering political uncertainties in key international markets and currency headwinds might continue to limit revenue growth. Moreover, integration risks linked to Starwood purchase is an added concern. Even so, its investments in technology for hotel bookings are anticipated to improve guest experience, which in turn might boost occupancy.
Buy-rated Intuitive Surgical’s shares have outperformed the Zacks Medical Instruments industry over the last three months, gaining +19.4% vs +5.3%. Its third quarter earnings and revenues both topped expectations.
The company’s procedure performance in Asia showed continued strength with solid growth in China, Japan and Korea. Intuitive Surgical gained significantly on the CE Mark approval for da Vinci X in Europe. The stock received a further boost on the recent FDA approval for da Vinci X.
The Zacks analyst likes the company’s solid outlook for the coming quarters. Further, incremental spending on product development and higher investments in international markets are prudent moves that are likely to drive long-term growth. The company is also expected to enhance its organizational capabilities and gain prominence in the markets of Europe and Asia.
Other noteworthy reports we are featuring today Edison International (EIX), Devon (DVN) and TELUS (TU).
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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>>>