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Research Daily

Tuesday, August 2, 2016

Today's must-read reports are for General Electric (GE), United Technologies (UTX) and 3M (MMM).

General Electric shares responded negatively to an otherwise strong June-quarter earnings report, with the company beating on both the top- and bottom-lines. Market participants weren't impressed with the conglomerate's order backlog. The Zacks analyst discusses the pros & cons of investing in GE shares at this stage, with the conglomerate steadily executing on its plan to reduce its exposure to finance and get back to its industrial and engineering roots. To that end, it is enjoying strong momentum in the power and aviation end markets, partly offset by continued weakness in the energy space. (You can read the full research report on GE here>>)

United Technologies strong Q2 results have helped sustain the stock's positive momentum; it is up more than 10% year-to-date. The analyst likes the company’s strong aftermarket business and the fact that it serves a broad range of end-markets such as aerospace, defense and commercial construction. Additionally, United Technologies generates strong free cash flow which allows management the opportunity to invest in product innovations, acquisitions and business development. (You can read the full research report on UTX here>>)

3M shares have held on to their impressive year-to-date gains (they are up more than 17%) despite the middling second-quarter 2016 report. The analyst credits the company its ability to deliver sustainable earnings and free cash flow growth on the back of its long-term strategy of accelerating investments in high-growth programs. Portfolio management, investment in innovation and business transformation are the three key levers on which the company intends to focus moving forward. (You can read the full research report on MMM here>>)

Other noteworthy reports we are featuring today include Berkshire Hathaway (BRK.B), Cabot (COG) and Tesla (TSLA).

You can find all of today's stock research reports here>>>

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Sheraz Mian

Director of Research

Note: Sheraz Mian regularly provides earnings analysis on and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview. He also provides weekly commentary to Zacks Premium subscribers and manages the Zacks Focus List and Top 10 portfolios.

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