You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

OK Cancel

Recent Quotes

No Recent Quote currently available

My Portfolio

My Portfolio Tracker

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts. Set yours up today.

Zacks #1 Stocks on the Move 06/26/2017

Company Name Symbol %Change
Teekay Offsh TOO
13.02%
Quantum Corp QTM
10.41%
Commercial V CVGI
9.44%
RCI Hospital RICK
8.42%
Children' PLCE
4.69%

Analyst Blog

Three Events to Watch: Global Week Ahead

Posted Mon Jun 26, 12:47 pm ET

by John Blank

This summertime Global Week Ahead is light on events, generally speaking. I noted three moments of genuine interest that could reshape the global tone, albeit modestly.

These merit close watching by traders. Otherwise, it is getting a bit laconic out there.

Dow Jones Newswires pulled together this executive summary for us…

On Tuesday, Fed Chair Janet Yellen speaks in London at the British Academy on global economic issues, in a moderated question-and-answer session with the audience.

As the Fed considers the timing of another interest-rate increase and the start of its plan to wind down its asset holdings, economists expect Ms. Yellen to stress the Fed will base its decisions on incoming economic data.

On Wednesday or Thursday, Brazil's Senate is likely to hold a final vote on a bill that would loosen the country's mazelike labor law, which has been a deterrent for investment. The bill has been under debate for months, and markets rallied as it advanced through the lower house earlier this year.

But corruption allegations against the proposal's main supporter, President Michel Temer, who denies wrongdoing, have fanned opposition, making its approval more complicated.

On Friday, inflation figures from around the eurozone will be in focus. For the eurozone, the annual rate of inflation is expected to drop to +1.2% y/y, from +1.4% y/y in May.

That would be the smallest rise in 2017, and likely reinforce the European Central Bank's reluctance to dial down its stimulus measures, despite signs of a continuing pickup in economic growth.

Three Top Zacks #1 Rank (STRONG BUY) Stocks—

Intuit (INTU): This is a $36 billion market cap stock with a Zacks VGM score of C. It is in the computer software industry.

Intuit's mission is to revolutionize how people manage their financial activities. The company's objective is to greatly expand the world of electronic finance.

Electronic finance encompasses three types of products and services:
•    desktop software products that operate on customers' personal computers to automate financial tasks;
•    products and services that are delivered via the Internet;
•    products and services that connect Internet-based services with desktop software to enable customers to integrate their financial activities.

Veolia Environment SA (VEOEY): This is a $11.9 billion market cap stock with a long-term Zacks VCM score of A.

Veolia Environment is the only global company to offer the entire range of environmental services in the water, waste management, energy and transportation sectors.

Veolia has been creating global and integrated solutions for public and private sector clients over the world. The quality of its research, the expertise and synergies developed between its teams, its mastery of the public-private partnership model and our commitment to sustainable development have made us a benchmark player in major environmental matters.

Jabil Circuit (JBL): This is a $5.4 billion market cap stock in the Electronics Manufacturing Services space. The long-term Zacks VGM score is an A.

Jabil Circuit, Inc. is a worldwide independent provider of electronic manufacturing services.

It designs and manufactures electronic circuit board assemblies and systems for major original equipment manufacturers in the communications, computer peripherals, personal computer, automotive and consumer products industries.

Key Global Macro Events—

We have 4 Fed speakers on Tuesday. Yellen speaks in London.

Inflation figures from the Eurozone late in the week bear watching.

On Monday, the German IFO indexes came out. Business climate went to 115.1 from 115.0. Current conditions went to 124.1 from 123.5, and expectations went to 106.8 from 107.0.  Nearly all of this is good news.

U.S. durable goods orders went down -1.1% this month, but ex transport, they were up +0.10%.

On Tuesday, the Fed’s Williams speaks in Sydney, Australia and the Fed’s Kashkari speaks in Michigan.

The Fed’s Yellen and Harker speak in London, U.K.

The Case-Shiller Home Price Index (HPI) should be out and the prior reading was +5.89% y/y.

On Wednesday, U.S. pending home sales come out. The prior reading was down -1.3% m/m.

On Thursday, the Eurozone’s Business Climate (prior 0.90), Consumer Sentiment(prior 1.3), and Economic Sentiment (prior 109.2) and Industrial Sentiment (prior 2.8) indexes come out.

The final estimate for U.S. GDP growth in Q1 comes out. Look for +1.1%.

U.S. initial claims should be low again at 241K.

On Friday, the unemployment rate in Germany comes out. The prior reading was 5.7%.

The flash HICP inflation indicator for the Eurozone comes out. The prior was 1.4% y/y.

The national unemployment rate in Brazil is headed to 13.8% form 13.6%.

The Chicago PMI comes out. The prior was a strong 59.4.

4 Excellent Value Picks Based on PEG Ratio

Posted Mon Jun 26, 11:52 am ET

by Zacks Equity Research

At a time when volatility strikes every second day, investors often rely on value investing rather than other options like growth or momentum. As soon as other investors start selling their stocks at a cheaper rate in times of market uncertainty, these value investors take this as an opportunity to pick good stocks at a discounted price.

However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to “value traps”. In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent. There are many value investment yardsticks such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount.

However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where lies the importance of a not-so-popular value investing metric, the PEG ratio.

The PEG ratio is defined as: (Price/ Earnings)/ Earnings Growth Rate

A lower PEG ratio is always better for value investors.

While P/E alone fails to identify a true value stock, PEG helps to find the intrinsic value of a stock.

Unfortunately, this ratio is often neglected due to investors’ limitation to calculate the future earnings growth rate of a stock.

There are some drawbacks to using the PEG ratio though. It doesn’t consider the very common situation of changing growth rates such as the forecast of the first three years at a very high growth followed by a sustainable but lower growth rate in the long term.

Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.

Here are the screening criteria for a winning strategy:

PEG Ratio less than X Industry Median

P/E Ratio (using F1) less than X Industry Median (for more accurate valuation purpose)

Zacks Rank of 1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or 2 have a proven history of success.)

Market Capitalization greater than $1 Billion (This helps us to focus on companies that have strong liquidity.)

Average 20 Day Volume greater than 50,000 (A substantial trading volume ensures that the stock is easily tradable.)

Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5% (Upward estimate revisions add to the optimism, suggesting further bullishness.)

Value Score of less than or equal to B: Our research shows that stocks with a Style Score of ‘A’ or ‘B’ when combined with a Zacks Rank #1, 2 or 3 (Hold) offer the best upside potential. 

Here are four out of nine stocks that qualified the screening:

Unilever PLC UL is one of the world’s leading suppliers of Food, Home Care, Personal Care and Refreshment products with sales in over 190 countries. Its leading brands in the U.S. and Canada include Axe, Becel, Ben & Jerry’s, Dove, Lipton, Magnum, Nexxus, Noxzema, Pond’s, and Vaseline among many more. The company currently holds a Zacks Rank #1 and has a Value Style Score of ‘B’. The company also has an impressive expected five-year growth rate of 12%.

NextEra Energy Partners, LP NEP: This Florida-based growth-oriented limited partnership formed by NextEra Energy acquires, manages and owns contracted clean energy projects with stable, long-term cash flows. The company also owns interests in wind and solar projects in North America as well as natural gas infrastructure assets in Texas. Apart from a discounted PEG and P/E, the stock has a Value Style Score of ‘A’ and holds a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Renewable Energy Group REGI: This is a provider of cleaner, lower carbon intensity products and services. It internationally produces biomass-based diesel and develops renewable chemicals. The company also claims to be North America's largest producer of advanced biofuel. The stock currently sports a Zacks Rank #1 and has a Value Style Score of ‘A’. The company also has an impressive long-term growth rate of 82%.

CAI International, Inc. CAI: This is a leading transportation finance and logistics company. The company holds a Zacks Rank #1 and has a Value Style Score of 'A'. The stock also has an impressive earnings growth rate of 19.2% for the next year.

Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

Intel Becomes a Sponsor of Olympics, VR & Drones in Focus

Posted Mon Jun 26, 10:00 am ET

by Zacks Equity Research

Intel Corp. INTC recently announced that it has signed up as a sponsor for the International Olympic Committee (IOC) till 2024. Per the terms of the deal, Intel will be spending $400 million in cash and kind for the global sporting event.

Intel joins other prominent names like Samsung SSNLF, Coca-Cola and Alibaba BABA. The deal was announced after a week, following long-time sponsor McDonalds' MCD withdrawal of its sponsorship deal three years early due to some cost reductions.

Intel is looking at this deal as an opportunity to showcase its 5G platform, virtual reality (VR) and drone technology. "Through this close collaboration with the Olympic family, we will accelerate the adoption of technology for the future of sports on the world's largest athletic stage," said Intel CEO Brian Krzanich.

We believe this platform will help Intel’s technology to reach a larger audience, which will eventually add to its customer base and subsequently drive its top line.

Increasing Adoption of VR & Drone Technology

Per IDC, augmented reality (AR) and VR spending will witness compound annual growth rate (CAGR) of 198% in the 2015 – 2020 time frame to reach approximately $143.3 billion.

In a recent report, Gartner stated that almost 3 million drones are expected to be shipped in 2017 with overall revenues expected to be almost $6 billion with an increase of 34%. The market could be worth over $11.2 billion by 2020.

With VR and drones gaining traction, Intel can ride the momentum with its flagship products like Falcon 8+ Drone, Yuneec Typhoon H, True VR and others.

Moreover, these technologies are steadily making their mark in the sports industry. With football and basketball practice sessions already being played in a VR environment and commercial drones being widely used for capturing footage of matches, the entire sporting experience is undergoing a transformation.

We note that with the new sponsorship contract, Intel is well placed to grab a strong foothold in the market, as IOC is planning to augment the use of these technologies at the events. These developments are likely to have a positive impact on Intel’s revenues.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market.  

See these critical buys and sells free >>      


 

Primoris (PRIM) Secures $53M Pipeline Construction Awards

Posted Mon Jun 26, 10:00 am ET

by Zacks Equity Research

Rockford Corporation, a unit of the Pipeline and Underground segment of Primoris Services Corporation PRIM, recently secured new pipeline construction awards valued at approximately $53 million.

The project has been awarded for the construction of natural gas pipelines located in Pennsylvania for a major energy infrastructure company. Work under the contract comprises installation of combined 27 miles of new gathering pipelines in the Marcellus shale region, including 24”, 16”, and 20” diameter pipeline.

Work on the project began in second-quarter 2017 and is expected to close in fourth-quarter 2017.

Primoris recently signed a new Master Service Agreement (MSA), with a major utility customer, with a three-year anticipated value of approximately $21 million. It includes carrying out natural gas main and service renewal work in Northern and Northeastern Iowa.

Thus, Primoris is positive about bidding opportunities, which will continue to increase its backlog. Moreover, benefits from geography and market diversity, as well as those from the expected boom in capital pipeline construction, will bolster revenues.

Primoris has an estimated long-term earnings growth rate of 10%. Other stocks in the Building Products and Heavy Construction sector are EMCOR Group, Inc. EME, Sterling Construction Company, Inc. STRL and MasTec, Inc. MTZ.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>

BB&T's Revenues Aided by Loan Growth, Rising Costs a Woe

Posted Mon Jun 26, 09:56 am ET

by Zacks Equity Research

BB&T Corporation’s BBT prospects look promising driven by impressive loan growth, potential lesser regulations and higher interest rates. Yet, constant increase in operating expenses remains a major concern.

BB&T’s organic growth strategy is impressive, given the continued rise in loan balance. The company witnessed rise in loans and leases at a five-year CAGR of 5.2% (2012–2016). Management expects loan balance to improve further, driven by economic growth and rise in demand for loans. Also, the passage of the Financial Choice Act is expected to strengthen lending activities. All these should support the company’s revenue growth.

Further, with higher interest rates (the Federal Reserve hiked rates thrice in last six months), the pressure on net interest margin (NIM) seems to be easing for BB&T. In the second quarter 2017, the company projects core NIM to increase 2–4 basis points on a sequential basis, mainly attributable to Fed rate hike in Mar 2017.

Also, BB&T along with other 33 major banks including JPMorgan Chase & Co. JPM, Bank of America Corporation BAC, KeyCorp KEY cleared this year’s stress test. This reflects continued strengthening of the company’s balance sheet position. Now, a dividend hike and a rise in share buyback authorization seem to be in the offing.

However, continuously rising operating expenses remains a big concern for BB&T. The primary reason for the rise is an increase in merger-related costs. As the company’s key focus is to increase revenues from insurance operations through opportunistic acquisitions, expenses are bound to rise in the quarters ahead.

Also, the company is making investments in artificial intelligence and robotics to improve operating efficiency. But these efforts are expected to lead to higher expenses in the near term.

While BB&T is witnessing loan growth, increased exposure to commercial, direct retail lending and residential mortgage loan portfolios poses a risk. Any deterioration in the macro-economic conditions could hurt the company’s financials.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market.  See these critical buys and sells free >>

Hanesbrands (HBI) Looks Good, Banks on Strategic Initiatives

Posted Mon Jun 26, 09:55 am ET

by Zacks Equity Research

Hanesbrands Inc. HBI looks good on the back of its brand portfolio, strong e-Commerce business and strategic initiatives. Further, management launched a Project Booster Program in the first quarter of 2017 in order to drive investment for growth, minimize costs as well as increase cash flow. Let’s delve deep to find what’s working well for the stock.

Growth Endeavors

Armed with a robust brand portfolio of well-recognized brands, Hanesbrands is the leading player in innerwear, casual wear and active wear markets in the U.S. Notably, the company’s flagship brand, Hanes, commands a major market share in the intimate apparel sector. In addition, management strengthens its brands by collaborating with several renowned designers that helps the company to increase its customers’ value.  

We note that the recently launched Project Booster Program is a multiyear program, which is likely to boost the company’s Sell More, Spend Less, Generate Cash strategy for additional gains, mainly from the global commercial and supply chain scale through acquisitions. Moving ahead, this project is anticipated to produce nearly $150 million of annualized cost savings, out of which roughly $50 million will be reinvested in targeted growth opportunities. Further, this reinvestment should generate approximately $100 million in a run rate of net annualized savings that will begin by the end of 2019.

In addition, the Project Booster cost savings along with working capital initiatives are estimated to produce an additional annual run rate of $300 million of cash from operations by the end of 2019. Further, this program, including the headcount reductions, is anticipated to be cost neutral for 2017. Meanwhile, the company’s Innovate-to-Elevate strategy is helping the company to focus on value-added, higher-priced and high-margin items that can be supplied at lower costs.

Moreover, Hanesbrands is making strategic acquisitions to expand its business portfolio and in turn, grab market share. In fact, Hanesbrands’ strong e-Commerce business is a positive.  Moving ahead, management plans to utilize its size and scale to boost supply chain optimization along with the investment in its domestic distribution center network in order to cater to the online channel efficiently.

Hurdles/Concerns

Hanesbrands has been witnessing lower-than-expected sales for the last few quarters, mainly due to soft sales at the brick-and-mortar stores. In fact, its sales have missed the Zacks Consensus Estimate in 12 of the past 13 quarters, including the last reported quarter.

Additionally, the company remains exposed to unfavorable foreign currency translations as nearly one-third of its total sales come from international businesses. In fact, currency is expected to negatively impact the company’s results, going forward.

We expect Hanesbrands to overcome these hurdles efficiently by its strategic initiatives and thereby become investors’ favorite stock. It is to be noted that Hanesbrands shares space with Cherokee Inc. CHKE, G-III Apparel Group, Ltd. GIII and Tailored Brands, Inc. TLRD.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>

UTX Operating Unit to Boost USAF's Performance with MS-177

Posted Mon Jun 26, 09:52 am ET

by Zacks Equity Research

UTC Aerospace Systems, a unit of United Technologies Corporation UTX recently completed the first flight test of its latest MS-177 long-range, multi-spectral imaging sensor on the Northrop Grumman RQ-4B Global Hawk Unmanned Aircraft System. The company initiated the test on Feb 8, at the Northrop Grumman facility.

UTC Aerospace was awarded this contract by the U.S. Air Force (USAF) on Sep 19, 2016. With the application of this technology in its planes, the U.S. military will be able to see airborne images at a greater distance with enhanced clarity.

The MS-177 was built upon the expertise and success of UTC Aerospace's Senior Year Electro-Optical Reconnaissance System sensor, which is currently used in the U-2S aircraft. The MS-177 is the new benchmark in imaging intelligence, surveillance and reconnaissance sensors. Its integration into the Global Hawk platform expands the mission capability that the company provides. The MS-177 Family of Systems sensor will offer improved image resolution over a longer range. It will also provide enhanced coverage area per hour compared to other Intelligence, Surveillance and Reconnaissance (ISR) sensors in the U.S. military inventory. This sensor system can operate from multiple ISR platforms, satisfying military requirements to improve operations both on land and sea.

With the completion of the Global Hawk flight, MS-177 is slated to commence a six-month integration, testing and qualification phase before it officially takes the field in the second half of 2017.

Based in Hartford, CT, United Technologies provides high-end technology products and services to the building systems and aerospace industries worldwide. The company serves various end markets such as aerospace, defense and commercial construction. The business diversification allows the company to remain profitable amid tough economic times.

Some of its peers in the industry include 3M Company MMM, Barloworld Limited BRRAY and Bunzl plc BZLFY. The company is working toward enhancing its product portfolio to stay ahead of its peers. Such research and development initiatives may put pressure on the company’s profits initially but will boost its top line going forward.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>

Roche's (RHHBY) Combination Cancer Remedy Wins FDA Approval

Posted Mon Jun 26, 09:50 am ET

by Zacks Equity Research

Roche RHHBY announced that the FDA has granted approval to the subcutaneous injection of its marketed lymphoma drug MabThera/Rituxan as Rituxan Hycela for the treatment of adults with different types of blood cancers.

The injection used Halozyme Therapeutics’ HALO proprietary Hycela (hyaluronidase), an FDA-approved enzyme that facilitates the delivery of a large volume of medicine under the skin.

Note that, MabThera/Rituxan is already approved in the U.S. for healing relapsed indolent non-Hodgkin Lymphoma (NHL). It is also sanctioned in the EU for treating patients with previously untreated and relapsed/refractory chronic lymphocytic leukaemia (CLL). Note that MabThera is traded by its brand name Rituxan in the U.S., Japan and Canada.

The approval was based on three phase III clinical studies and one phase Ib study in different types of blood cancers. The studies demonstrated that the combination of Rituxan and Hycela, resulted in non-inferior levels of rituximab in the blood and showed positive clinical efficacy outcomes compared with the intravenous Rituxan alone.

One of the studies also showed that 77% of patients preferred the combination therapy over Rituxan as treatment with Rituxan-Hycela can be administered in just five to seven minutes compared with the prolonged procedure of 1.5 hours under the influence of intravenous Rituxan.

Notably, Rituxan-Hycela received an FDA approval for treating three most common types of blood cancers, including follicular lymphoma, diffuse large B-Cell lymphoma (DLBCL) and chronic lymphocytic leukaemia (CLL).

Per the company’s press release, approximately 198,000 patients worldwide are estimated to be annually diagnosed with the two types of above-mentioned lymphoma. Leukaemias are estimated to affect around 3.5 million people each year globally. Hence, patients suffering from the above mentioned blood cancers now have a new treatment option which provides efficacy comparable with intravenous Rituxan. Moreover, it can be administered in lesser time compared to IV infusion.

We remind investors that competition from Amgen AMGN and Novartis NVS biosimilars loom large on Rituxan. However, the biosimilar versions of Rituxan are expected to enter Europe in the second half of 2017.

In a separate press release, the company has announced presentation of results from a new post-hoc phase III study evaluating its marketed drug Ocrevus (ocrelizumab) at the European Academy of Neurology (EAN). Ocrevus is indicated for treating patients with relapsing and primary progressive forms of multiple sclerosis.

The post-hoc analyses revealed that Ocrevus has increased disease control in patients with relapsing multiple sclerosis (RMS) and primary progressive multiple sclerosis (PPMS). A higher proportion of RMS patients (75%) achieved No Evidence of Disease Activity (NEDA) when applied with Ocrevus compared with the interferon beta-1a (Rebif) arm. Also a higher proportion of PPMS patients (47%) achieved No Evidence of Progression (NEP) with Ocrevus compared with placebo.

Notably in Mar 2017, Ocrevus had passed the FDA approval test for treatment of both RMS and PPMS.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>

Eni (E) Sails Out First LNG Shipment from Jangkrik Field

Posted Mon Jun 26, 09:50 am ET

by Zacks Equity Research

Eni SpA E set out its first liquefied natural gas (LNG) shipment produced from the Jangkrik field for the Indonesian domestic market. The field is located in Indonesia in deep water.

Per a long-term LNG contract inked with PT Pertamina (PERSERO) in Jun 2015, the 22,500 m3 cargo left the Bontang Liquefaction Plant, in East Kalimantan, and is headed to Bali where it will be unloaded.

Eni began gas production at Jangkrik ahead of schedule on May 15, 2017. Gas produced is processed onboard the FPU ‘Jangkrik’ and then flows to the Onshore Receiving Facility. It finally arrives at the Bontang gas liquefaction plant via the East Kalimantan Transportation System.

The LNG produced is sold under long-term contracts, partly to PT Pertamina and partly to Eni itself. Eni will then sell its portion as part of the development of its international LNG portfolio, in sync with the company’s strategy announced in February.

Eni operates the Muara Bakau PSC, holding a 55% stake through its subsidiary Eni Muara Bakau BV. The other PSC partners are ENGIE E&P (through its subsidiary GDF SUEZ Exploration Indonesia BV) and PT. Saka Energi Muara Bakau, holding 33.334% and 11.666%, respectively. All activities are performed in coordination with SKK Migas, the entity representing the Government of Indonesia.

Eni has been present in Indonesia since 2001. Currently, the company has a large asset portfolio across exploration, production and development. Production activities are located in the Mahakam River delta, East Kalimantan, through VICO Ltd, a joint venture between Eni, which is the operator, and Saka Energi. Each company has an interest of 50% in VICO Ltd, which is party to the Sanga Sanga PSC and produces on average 20,000 barrels of oil equivalent per day.

Investors interested in the same space can consider SunCoke Energy, Inc. SXC, Enbridge Energy, L.P. EEP and Canadian Natural Resources Limited Ltd. CNQ.

SunCoke Energy delivered a positive earnings surprise of 120.0% in the preceding quarter. The company beat estimates in two of the four trailing quarters with an average negative earnings surprise of 35.78%.

Enbridge Energy delivered a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the four trailing quarters with an average positive earnings surprise of 38.22%.

Canadian Natural Resources delivered a positive earnings surprise of 30.77% in the preceding quarter. It surpassed estimates in two of the four trailing quarters with an average negative earnings surprise of 275.46%.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>

First Republic (FRC) Poised for Growth: Should You Hold?

Posted Mon Jun 26, 09:50 am ET

by Zacks Equity Research

Banks constitute a major part in the broad Finance sector. Recent developments in the banking sector, including the Fed interest rate hike and the approval of Financial Choice Act, are driving factors for investors to add banking stocks to their portfolio.

Therefore, First Republic Bank FRC can be one such stock. Though the company recorded escalating expenses, it has been growing through considerable top-line strength on growth in loans and deposits balances.

First Republic’s future prospects look promising driven by consistent growth in loans and deposits, along with anticipated lesser regulations. Further, the company continues to benefit from an improving net interest income and non-interest income.

With the gradual change in the rate environment, margin pressure for First Republic seems to be easing with the expectation of same in the near term. Also, the company has been benefiting from improved loan yields.

However, escalating operating expenses have been a concern for First Republic. Notably, cost savings from completed build-out of systems and processes required for crossing $50 billion in total assets are being invested into digital initiatives, including mobile banking applications and data analytics. As such, operating costs are likely to remain elevated in the near term.

Other Stocks to Consider

BOK Financial Corporation BOKF, Comerica Incorporated CMA and BancFirst Corporation BANF are the stocks worth considering, with their estimates witnessing upward revisions for the last 30 days.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>

Full Archive

The content contained in this weblog feature may have been abstracted from a complete Zacks Equity Research report.

Zacks Research is Reported On: