Top Research Reports for Disney, NextEra & TJX Companies

Wednesday, November 15, 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 Disney (DIS), NextEra (NEE) and TJX Companies (TJX). 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 >>>

Disney’s shares have increased +4.1% in the last one year vs. the Zacks Media Conglomerates industry’s -5.5% decline in that same time period. Disney reported lower-than-expected results in fourth-quarter fiscal 2017. However, the Zacks analyst thinks that the deal with Rian Johnson, director of The Last Jedi, to produce a new Star Wars trilogy has raised hopes of investors.

Further, a strong performance by the Parks & Resorts unit continues to impress. The company’s decision to terminate the distribution agreement with Netflix for subscription streaming and having its own streaming services —one for Disney and Pixar brands and another for ESPN followers — is likely to be a driving factor in the long run.

Also, in an effort to attract online viewers, Disney has completed the acquisition of BAMTech. However, falling subscriber and higher programming costs at ESPN were the major concerns this quarter too. The fresh NBA agreement and rise in contractual rate are driving up programming costs.

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

Shares of NextEra have outperformed the Zacks Electric Power industry in the year-to-date period (the stock is up +32.6% vs. +12.9% gain for the industry). NextEra’s earnings in the third quarter topped expectations on strong performance of its segments. NextEra Energy’s operations were temporarily impacted by adverse weather conditions in its service territories.

However, the investments already made to strengthen its infrastructure helped it overcome the difficult situation and quickly restore normalcy of operations. The Zacks analyst likes the company’s focus on clean energy, which has lowered emission levels and saved on energy bills for its customers. The natural gas pipelines, which came online in the first half, are expected to boost its performance.

On the flip side, the company’s nature of business is subject to complex and comprehensive federal, state and other regulations. Unpredictable impact of natural disaster and delay in completion of ongoing projects could also impact profitability.

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

TJX Companies’ shares have underperformed the Zacks Discount Stores industry over the last three months, losing -5.1% vs a +7.5% increase. However, TJX Companies has been recording year-over-year growth in both top and bottom lines for a while now, thanks to robust consumer traffic and strength in merchandise margins.

The Zacks analyst likes the company’s focus on store expansions, e-commerce efforts, solid merchandise mix and other sales driving initiatives. Further, its strong merchandise margins reflect its focus on inventory management. Notably, these factors drove its performance in third-quarter fiscal 2018.

However, comps in the third quarter were dented by hurricanes, with demand for Marmaxx apparel being hurt by warm weather. Also, TJX Companies has been witnessing high wage costs for quite some time now. It also expects this factor to hurt earnings growth by 2% in fiscal 2018.

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

Other noteworthy reports we are featuring today Oracle (ORCL), Toyota (TM) and Sempra (SRE).

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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

Disney's (DIS) New Star Wars Trilogy to Boost Movie Business

NextEra (NEE) Benefits From Customer Growth and Investments

Solid Inventory Management Fuels TJX Companies (TJX) Margins

Featured Reports

Alliance Data (ADS) Gains from Strong Segmental Performance

Per the Zacks analyst, Alliance Data is set to gain from solid performances across its segments banking on organic growth and strategic buyouts.

High Fuel Oil Price Continues to Hurt Hawaiian Electric (HE)

Per the Zacks analyst, Hawaiian Electric is witnessing increased fuel oil price expenses, which in turn elevates its total expenses.

Oncor Buyout Aids Sempra (SRE), Aliso Canyon Gas Leak Hurts

Per the Zacks analyst, the latest Oncor acquisition will boost Sempra Energy's growth in the Texas energy market.

Suncor (SU) Buoyed by Lower Cash Costs, Oil Sands Production

Apart from record oil sands output on strong contribution from the Firebag project, the Zacks analyst believes Suncor's low cash costs has helped it to take advantage of the rebound in oil prices.

Acquisition of PCLI Business to Buoy HollyFrontier (HFC)

Per the covering analyst, the acquisition of Petro-Canada Lubricants has boosted HollyFrontier's scale and diversification thereby enhancing the cash inflows and growth platform of the company.

Construction Services Business, Buyouts to Aid AECOM (ACM)

Per the Zacks analyst, strong Construction Services business and accretive acquisitions like Shimmick, will continue to lend momentum to AECOM.

Pilgrim's Pride (PPC) Grows on Portfolio Strategy & Buyouts

The Zacks analyst thinks that unique portfolio strategy, benefits of GNP Company and Moy Park acquisitions, as well as product launches will continue to boost Pilgrim's Pride's near-term results.

New Upgrades

Perrigo's (PRGO) Focus on OTC Market Bodes Well for Growth

Per the Zacks analyst, Perrigo's focus on pursuing OTC opportunities in the U.S. market is encouraging. Moreover, the launch of Rx-to-OTC switch product, Nexium will drive top-line in the near-term.

Toyota (TM) to Gain from Cost Cut Efforts, Worldwide Sales

Per the Zacks analyst, its cost reduction initiatives and expected increase in worldwide sales empowered Toyota to raise its operating income guidance for fiscal 2018.

Oracle (ORCL) Drives on Robust Cloud-based Product Portfolio

According to the Zacks analyst, Oracle's robust cloud-based product portfolio will continue to boost its top-line growth. This is also expanding its market share and competitive prowess.

New Downgrades

ForEx Woes and Fierce Competition Mar Surmodics (SRDX)

The Zacks analyst believes Surmodics' SurVeil Drug-Coated Balloons will face stiff competition from Medtronic's admiral IN.PACT platform. Weakening of U.S. dollar versus the Euro is a headwind.

Escalating Senior Housing Supply to Hurt Ventas (VTR)

The Zacks analyst thinks elevatedsupply of senior housing properties in Ventas' key markets might moderate rent and occupancy growth. Further, Ventas will be hurt any rise in interest rates.

Williams-Sonoma's (WSM) Margin Hit by Higher Investments

Per the Zacks analyst, although Williams-Sonoma has been working hard on repositioning its brands, continued e-commerce and supply-chain investments weigh on operating margins.

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Toyota Motor Corp Ltd Ord (TM) : Free Stock Analysis Report
 
TJX Companies, Inc. (The) (TJX) : Free Stock Analysis Report
 
Sempra Energy (SRE) : Free Stock Analysis Report
 
Oracle Corporation (ORCL) : Free Stock Analysis Report
 
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
Walt Disney Company (The) (DIS) : Free Stock Analysis Report
 
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