Friday, December 22, 2017

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 Wal-Mart (WMT), Procter & Gamble (PG) and NVIDIA (NVDA). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Buy-rated Wal-Mart’s shares have been strong performers lately, with the stock up +31% over the last six months, outperforming the S&P 500's +10.1% gain in the same time period. Wal-Mart Stores, recently announced plans to drop the “hyphen” and “stores” from its name to officially emerge as an omnichannel retailer.

The company has been riding on its splendid past record, which derives strength from constant e-commerce initiatives, like buyouts, alliances, and improved delivery systems. Thanks to these trends, along with solid traffic, Walmart’s third-quarter fiscal 2018 marked its ninth and 13th straight quarter of positive earnings surprise and comps growth, respectively.

Also, the company’s international business (particularly Mexico and China) remains a growth driver. These factors, along with a strengthening foothold in the online grocery space place the company well. This is evident from management’s raised view for fiscal 2018. However, stiff competition and macroeconomic woes like volatile consumer spending remain threats.

(You can read the full research report on Wal-Mart here >>>).

Shares of Procter & Gamble have underperformed the Zacks Soap and Cleaning Materials industry so far this year (+9% vs. +17.5%). The Zacks analyst likes its strong brand recognition, diversified portfolio, impressive product development capabilities and marketing prowess as well as strong cash flow productivity.

The company is investing in its brands and products as well as redesigning the supply chain to improve productivity and organic growth. However, slowing market growth, weak volumes and organic sales have been hurting sales. Soft consumer-spending environment in developed markets and uncertainties in emerging countries also add to the worries.

That said, P&G is speeding up innovations and investments to counter softening industry growth. Its productivity improvements and cost-saving efforts are also consistently helping to boost profit level.

(You can read the full research report on Procter & Gamble here >>>).

Strong Buy-rated NVIDIA’s shares have surged over the last year, gaining in excess of +78.5% versus the Zacks General Semiconductor industry’s +43.9% gain, thanks to the company’s positive record of earnings surprises in the recent quarters. NVIDIA’s sustained efforts toward attaining robust position in several emerging industries such as Artificial Intelligence (AI), deep learning and driverless cars industry, makes the Zacks analyst optimistic about its growth prospects.

NVIDIA’s innovative product pipeline and strength in gaming and high-end notebook GPUs remain positives. The company’s focus on GRID platforms can increase GPU adoption in data centers, giving it an advantage against its competitors.

(You can read the full research report on NVIDIA here >>>).

Other noteworthy reports we are featuring today include Cigna (CI), Exelon (EXC) and McKesson (MCK).

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Senior Editor

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>>>

Today's Must Read

International & Online Strength to Fuel Walmart (WMT) Sales

Procter & Gamble (PG) to Gain from $10B Cost-Saving Plan

NVIDIA (NVDA) to Gain From Multiple AI Project Partnerships

Featured Reports

Exelon (EXC) to Gain from Cost Savings and Investments

The Zacks analyst believes Exelon will gain from its continuous investment to strengthen its regulated assets, while its cost savings initiatives will boost its margins.

Increasing Membership Buoys Teladoc (TDOC), High Cost Ails

Per the Zacks analyst, Teladoc is witnessing steady business growth with increasing membership due to rapidly growing demand for telehealth services, but high operating expenses are hurting margins

Growing Healthcare and Packaging Business Drives Jabil (JBL)

Per the Zacks analyst, growing demand for affordable healthcare and dependable consumer packaging is driving Jabil's top line. However, increasing competition begets caution.

Distribution Segment Aids McKesson (MCK) Amid Pricing Issues

The Zacks analyst is bullish on McKesson's solid performance at the Distribution Solutions segment.

Solid Steel Demand, Core Operations to Benefit POSCO (PKX)

Per the Zacks analyst, POSCO will gain from rising steel demand in home country and globally.

Actuant (ATU) to Grow on Restructuring, Energy Business Ails

The Zacks analyst thinks that portfolio reshaping moves like Viking business spin-off or Mirage buy will boost Actuant's competency.

Bed Bath & Beyond's (BBBY) Transformation Plan to Boost Sales

Per the Zacks analyst, Bed Bath & Beyond's transformation plan is focused on improving assortments, services and customer experience.

New Upgrades

Increasing Membership, Strong Balance Sheet Aids Cigna (CI)

Per the Zacks analyst, membership growth at the company over past several quarters has aided top line growth. Also its strong balance sheet aids investments for growth.

ONEOK (OKE) Gains from Fee-Based Contracts & Expansion

The Zacks analyst believes ONEOK continues to gain from increasing fee based contracts and expansion of its existing capacity in the prolific oil and gas regions.

BlackBerry (BB) Buoyed by Robust Software Sales

The Zacks analyst is impressed by its decision to focus exclusively on software business. Strong software sales is aiding the company hugely. Growth of its cybersecurity business is another positive.

New Downgrades

Adverse Weather, Stringent Regulations Hit OGE Energy (OGE)

Per the Zacks analyst, adverse weather conditions like Hurricanes damage OGE Energy's smooth flow of operations. Also stringent regulations may push up the company's operational costs.

Soft Sales in Men's & Women's Segments Hurts Iconix (ICON)

Per the Zacks analyst, downsizing of the Starter brand has lowered Iconix's men's segment performance. Further, the company's top-line struggles with weak brands in the women's business portfolio.

Rising Material and Labor Costs Hurt D.R. Horton (DHI)

Rising labor and materials costs (particularly lumber and concrete) are denting D.R. Horton's margins, which decreased 20 basis points in fiscal 2017.

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Wal-Mart Stores, Inc. (WMT) : Free Stock Analysis Report
 
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
McKesson Corporation (MCK) : Free Stock Analysis Report
 
Exelon Corporation (EXC) : Free Stock Analysis Report
 
Cigna Corporation (CI) : Free Stock Analysis Report
 
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