Today's Must Read
Pre-Salt Reserves Boosts Petrobras (PBR), Debt Pile Hurts
Fiserv (FISV) Rides on Buyouts, Product Suite Amid Debt Woes
Friday, December 13, 2019
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 Danaher (DHR), Petrobras (PBR) and Fiserv (FISV). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Danaher’s shares have outperformed the Zacks Diversified Operations industry year to date (46.8% vs. 29.1%). The Zacks analyst believes that sturdier demand for innovative products, effective implementation of Danaher Business System and shareholder-friendly policies will likely bolster profitability going forward.
Also, the acquisition of the BioPharma business will complement the company’s Life Sciences segment. For fourth-quarter 2019, the company expects adjusted earnings of $1.32-$1.35 and core sales growth of 4.5%. The company will soon dispose of its remaining 80.6% stake in Envista through an exchange offer. Moreover, the company is exposed to forex woes, high debts, rising costs and others.
Shares of Petrobras have gained 6.5% in the past three months against the Zacks Emerging Markets Integrated Oil industry’s rise of 1.4%. The Zacks analyst believes that Petrobras’ cost containment efforts and ambitious divestment plans have been helping the firm to improve its credit ratings.
The company boasts of an impressive portfolio, particularly in Brazil’s pre-salt reservoirs and projects strong average annual output growth till 2024.
Meanwhile, the company has revved up its five-year divestment plan of $75.7 billion to streamline portfolio and sharpen focus on other profitable segments for achieving top-tier results. However, the fact that Petrobras is still reeling under huge debt burden cannot be overlooked. Years of mismanagement and corruption have also taken their toll. Hence, the company warrants a cautious stance at the moment.
Fiserv's shares have gained 29.1% over the past six months against the Zacks Financial Transaction Services industry's rise of 7.8%. The Zacks analyst believes that Consistency in rewarding shareholders through share buybacks boosts investors' confidence and positively impact earnings per share.
The company enjoys a dominant position in the financial and payments solutions business on the back of broad and diverse customer base, and continued technology upgrades. Its diversified product portfolio helps attract a steady flow of customers. Acquisitions help boost its market share and customer base.
On the flip side, maintaining strong and long-term client relationships is a difficult task amid stiff competition. High debt may limit the company’s future expansion and worsen its risk profile. Multiple buyouts result in integration risk.
Other noteworthy reports we are featuring today include CME Group (CME), Chubb (CB) and ConocoPhillips (COP).
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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>>>