Top Research Reports for Canadian National, Itau Unibanco & Expedia

Thursday July 6 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 Canadian National (CNI), Itau Unibanco (ITUB) and Expedia (EXPE).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 >>>

Canadian National’s shares have done well since the election (up +28%) and have also posted strong gains over the last year (up +38.8%), but failed to outperform the Zacks Transportation Rail industry which gained +39.5% over the same period. However, the stock has outperformed fellow railroad operator, Canadian Pacific, which has gained +24.8% over the last year. The Zacks analyst likes the company's initiatives to reward investors.

Furthermore, the company's 2017 capital investment plan is a positive. This plan complements its efforts to promote safety and enhance productivity. Due to these tailwinds we expect the stock to perform well in the second quarter. Detailed results should be out on Jul 25. Estimates have moved up 3.2% to $0.97 per share over the last month. The company's high debt levels, however, raise concerns.

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

Shares of Itau Unibanco underperformed the Zacks categorized Foreign Banks industry year to date losing -6.5% vs a gain of +16.8%. Rising operational risk, with management's expectation of non-interest expenses to grow in the range of 1.5–4.5% in 2017, remains a concern. But the Zacks analyst likes the company focus on building strategies to expand inorganically. In Dec 2016, it completed the acquisition of 40% equity stake in Itau BMG Consignado. Further, it has been diversifying its loan composition with focus on origination of products with lower risks and more guarantees.

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

Expedia’s shares have underperformed the Zacks characterized Electronic Commerce industry year to date gaining +32.6% vs +40.4%. However, it has outperformed its peers Priceline (up +26.8%) and TripAdvisor (down -19.4%) over the same period. The company's agency business looks good, which is no doubt benefiting from the ETP initiative.

However, the Zacks analyst thinks increased investments in the business, increasing competition across geographies, discounts offered by larger chain hotels and lack of ADR growth in emerging markets can make margin expansion difficult. Detailed results are expected on Jul 27.  Estimates have increased by 0.7% to $4.18 per share over the last 60 days.

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

Other noteworthy reports we are featuring today include Edison International (EIX), Assurant (AIZ) and Delphi Automotive (DPLH).

Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>> 

Mark Vickery

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

Volume Growth Buoys Canadian National (CNI) Amid Debt Woes

Diversification Aids Itau Unibanco (ITUB); High Costs a Woe

Expedia (EXPE) Hurt by Sluggish Corporate Travel Business

Featured Reports

Rowan's (RDC) High-Spec Jackups to Offset Rig Contract Woes

The Zacks analyst believes that Rowan's technologically advanced and versatile jack-up fleet will cushion the company's revenues against adverse impact from rig contract terminations.

Wireless Subscriber Gain Lifts Rogers (RCI) Amid Competition

Per the covering analyst, wireless and internet subscriber gain is a major positive for Rogers Communications, while competition posed by wireless carriers and online video streaming providers is a woe.

Tie-up with Transdev Aids Delphi (DLPH), Soft Q2 View Hurts

Per the Zacks analyst, tie-up with Transdev to develop self-driving transport services in Europe will aid Delphi.

Macy's (M) Omnichannel Strategy May Help Counter Waning Comps

Per the Zacks analyst, declining comps and mall traffic as well as waning margins are concerns.

Demand of Student Loans Aid Navient (NAVI), Legal Cost a Woe

Per the Zacks analyst, the declining unemployment rate has led to a rise in demand for student loans which shall bolster Navient growth.

Acuity Brands (AYI) Hit by Supply Chain Costs & Price/Mix

The covering analyst stresses that higher supply chain costs and unfavorable price/mix has been affecting gross margins, which declined 200 basis points in the recently reported third quarter.

Hartford Financial (HIG) Lowers Risk Profile; Talcott a Drag

Per the Zacks analyst, although Hartford Financial's strategic initiatives improve risk profile and capital deployments, its Talcott Resolution and Personal Lines segments continue to underperform.

New Upgrades

Edison International (EIX) Up on Rate Base Hike, Solid View

Per the Zacks analyst, a systematic infrastructural investment has allowed sharp rise in Edison International's regulated rate base. Such rate base hikes have boosted its top line outlook.

Weyerhaeuser (WY) to Gain from Uruguay Assets Divestment

Per the covering analyst, Weyerhaeuser will benefit from the divestment of its Uruguay-based timberlands and manufacturing business going forward. Also, cost-savings efforts remain encouraging.

ResMed's (RMD) Brightree Inclusion Boosts Innovation in SDB

Per the Zacks analyst, ResMed rides on surging demand for its products for the treatment of SDB. Meanwhile, Brightree consolidation has been meaningfully boosting sleep apnea devices sales in the U.S.

New Downgrades

GoDaddy (GDDY) Faces Tough Competition and Integration Risks

The Zacks analyst believes that increasing competition in domain and hosting markets along with integration risks are major concerns.

Global Housing Unit Continues to Hurt Assurant (AIZ)

Per the Zacks analyst lower mortgage originations, along with declining real estate owned volumes, are weighing on Assurant's Global Housing segment's results, thereby limiting the company's growth.

Genworth's (GNW) Life Insurance Sales to Stay Moderate

Due to the 2014 introduction of a higher priced Long Term Care (LTC) product, Genworth's LTC and Life Insurance sales will likely remain modest despite adopting several new product and distribution strategies.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Itau Unibanco Banco Holding SA (ITUB) : Free Stock Analysis Report
 
Expedia, Inc. (EXPE) : Free Stock Analysis Report
 
Edison International (EIX) : Free Stock Analysis Report
 
Delphi Automotive PLC (DLPH) : Free Stock Analysis Report
 
Canadian National Railway Company (CNI) : Free Stock Analysis Report
 
Assurant, Inc. (AIZ) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research