Today's Must Read
GlaxoSmithKline's (GSK) New Products to Fuel Top-Line Growth
McDonald's (MCD) Gaining from Various Strategic Initiatives
Tuesday, September 27, 2016
Stocks started the Tuesday session modestly in the green after two down sessions, with many seeing the tightening presidential election as adding to market uncertainty. Oil, gold, the U.S. dollar and the 10-year Treasury bond yield lost ground in the morning, with the oil pullback likely indicating the market's skepticism of OPEC's ability to come out with anything meaningful in tomorrow's meeting in Algiers. On the data front, this morning's July Case-Shiller home price index showed +5.1% increase, which follows the prior-month's +5% gain.
We are featuring 16 research reports on major stocks in today's Research Daily, including General Electric (GE), GlaxoSmithKline (GSK) and McDonald’s (MCD).
Buy rated General Electric shares have lagged the market this year on concerns about the conglomerate's order backlog and continued weakness in the energy end-market. This issue notwithstanding, the company has done an excellent job of 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. A track record of returning excess cash to shareholders through buybacks and dividends (dividend yields an attractive 3.1%) are some of the other positives in the GE story. (You can read the full research report on GE here>>)
GlaxoSmithKline shares have gained more than 7% year-to-date, outperforming many of its large-cap pharma peers. The buy rated stock is positioned to deliver strong core earnings growth on the back of performance momentum in its new products as well as those acquired from Novartis. These should help support revenues and ease the impact of the loss of Advair sales. Glaxo’s efforts to develop its pipeline are also encouraging. Moreover, steps to increase cost efficiency and its outlook for the next five years bode well. You can read the full research report on GlaxoSmithKline here>>)
McDonald’s shares have been weak lately on soft industry trends, macroeconomic concerns in various parts of the world along with negative currency translation issues. However, the analyst likes the manner in which McDonald’s has turned itself around in the domestic market like menu innovation, introduction of value meals, efficient marketing and promotions, and improved service. (You can read the full research report on McDonald’s here>>)
Other noteworthy reports we are featuring today include Caterpillar (CAT), 3M (MMM) and Medtronic (MDT).
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Director of Research