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Research Daily

Wednesday, October 26, 2016

Today's Research Daily features new research reports on 16 major stocks, including United Technologies (UTX), Sprint (S) and Eli Lilly (LLY).

United Technologies shares have performed in-line with the broader market in the year-to-date period, though sentiment on the stock will likely benefit from the solid third-quarter report where it beat estimates and provided favorable outlook. The analyst likes the business mix and diversification which allows the company to deliver consistent earnings and dividend growth. The company remains focused on four key priorities to fuel its growth engine: flawless execution, innovation for growth, structural cost reduction and disciplined capital allocation. United Technologies also raised the lower end of its 2016 earnings guidance on favorable growth dynamics. (You can read the full research report on United Technologies here>>)

Sprint shares have been standout performers lately (the stock is up nearly 80% year-to-date), likely reflecting market participants' optimism about the wireless provider's SoftBank-inspired (Japan's SoftBank owns 80% of Sprint) turnaround plan. Sprint reported impressive financial results for the second quarter of fiscal 2016. The analyst likes the company’s newly initiated growth and investment plans. Moreover, the upcoming launch of its new 5G technology, attractive promotional plans, tilt towards IP-enabled cloud services and sale-leaseback transactions to pay-off its debt, are sure to increase its customer base and improve liquidity pressures. However, by offering attractive promotional plans and lucrative discounts, Sprint is experiencing high cash burn rate. (You can read the full research report on Sprint here>>)

Pharmaceutical stocks have been under pressure this year on pricing and regulatory concerns in the current political backdrop and Eli Lily shares have been no different. Lilly’s third quarter results were below expectations with earnings and revenues missing estimates, but the analyst is encouraged by the fact that Lilly expects to launch 20 new products in a 10 year time-frame ranging from 2014 to 2023 and could launch at least 2 new indications/line extensions on average every year. Moreover, Lilly expects to return to annual dividend increases starting Dec 2016 and to return excess cash through share buybacks. (You can read the full research report on McDonald’s here>>)

Other noteworthy reports we are featuring today include Edwards Lifesciences (EW), McDermott (MDR) and Whirlpool (WHR).

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

Sheraz Mian

Director of Research

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