Top Research Reports for ExxonMobil, AT&T & Barclays

Monday,  April 16, 2018

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 ExxonMobil (XOM), AT&T (T) and Barclays (BCS). 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 >>>

ExxonMobil’s shares have underperformed the Zacks Integrated Oil industry (-4.6% vs. +14.5%) as well as peer Chevron (+12.9%) over the last one year. However, Exxon Mobil has a leading position in the energy industry owing to the size and diversity of its asset base, both in terms of business mix and geographical footprint. With a stable cash position, the company’s balance sheet is one of the best in the industry.

The Zacks analyst likes the integrated energy firm’s decision to combine its refining & marketing businesses. This will allow the company to take better decisions and boost performance. ExxonMobil will generate more cashflow from downstream activities, also helping it counter the volatility in its upstream business.

However, the company’s rising exploration expenses are a concern. On top of that, Exxon Mobil’s exit from a joint venture in Russia will hurt cashflow.

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

Shares of AT&T have decreased -12.8% in the last year, underperforming the Zacks Wireless National industry's fall of -10.8%. However, AT&T is gearing up to launch the first standards-based mobile 5G services to consumers in multiple U.S. markets by the end of 2018.

Moreover, the Zacks analyst thinks the company is likely to immensely benefit from its long-pending merger with Time Warner Inc., with the combined entity expected to become a major player in the consolidated telecom-media space. Although the matter remains subjudice, the company is likely to go on the offensive to seek a verdict in its favor.

However, AT&T’s profitability has been hurt with spectrum crunch in a saturated wireless market. In addition, the company’s wireline division is struggling with persistent losses in access lines due to competitive pressure from voice-over-Internet protocol service providers and aggressive triple-play offerings by cable firms. These are weighing on AT&T’s revenues and margins.

(You can read the full research report on AT&T here >>>).

Barclays’s shares have outperformed the Zacks Foreign Banks industry over the last six months, with BCS shares up +21.2% vs. +0.1% gain for the industry. The company has surpassed the Zacks Consensus Estimate for earnings in only one of the trailing four quarters. Its restructuring and business simplifying efforts (including ring-fencing) have ended successfully and will likely continue to result in decrease in expenses.

Also, driven by these efforts, the company intends to enhance capital deployment activities as profitability improves going forward. However, the bank has been facing pressure on revenues owing to weak capital market performance, low interest rates and uncertainty related to Brexit.

Further, litigation matters remain a near-term concern. In fact, settlement of the U.S. mortgage lawsuit for $2 billion will hurt its first quarter 2018 results.

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

Other noteworthy reports we are featuring today include Cardinal Health (CAH), UnitedHealth (UNH) and Lennar (LEN).

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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

Exxon's (XOM) Strong Refining Offsets High Exploration Costs

AT&T (T) Remains Poised for 5G Launch, Margin Woes Linger

Streamlining Efforts Aid Barclays (BCS), Legal Hassles Linger

Featured Reports

Unit Revenue Growth Aids JetBlue (JBLU), Fuel Costs Ail

The Zacks analyst likes the company's performance with respect to unit revenues. Efforts to reduce its debt levels are also encouraging.

Loan Growth Aids Bank of the Ozarks (OZRK), Margin a Woe

Per the Zacks analyst, persistent growth in loans and deposits are expected to further support Bank of the Ozarks' revenues.

Lennar (LEN) to Gain from Strong Housing Demand, CalAtlantic Buyout

The acquisition of CalAtlantic will position Lennar as one of the country's top homebuilders. Additionally, strong housing fundamentals and diverse revenue mix will drive growth, per the Zacks analyst

Ligand's (LGND) Captisol Technology Bodes Well for Growth

Ligand's Captisol technology led to partnerships with big healthcare companies that provide it with funds and royalties. This may drive the company's long-term growth according to the Zacks analyst.

Solid Cloud Revenues, Lower Commissions Benefit Paycom (PAYC)

Per the Zacks analyst, Paycom is gaining from adoption of cloud-based offerings.

Portfolio & International Expansion to Aid Discovery (DISCA)

Per the Zacks analyst, the completion of the Scripps buyout is positive for Discovery as its product portfolio has widened significantly.

LabCorp's (LH) Covance Arm to Gain from Chiltren, LaunchPad

Per the Zacks analyst, the $1.2 billion Chiltren buyout will bring LabCorp's Covance drug development arm back on sustainable growth track.

New Upgrades

Debt Reduction, Met Coal Demand Aids Natural Resource (NRP)

The Zacks analyst believes Natural Resource Partners initiatives to lower its outstanding debt levels and rising demand for metallurgical coal will boost its performance.

Cardinal Health (CAH) Gains Ground on Specialty Arm

Cardinal Health has been expanding its customer base, courtesy of solid growth in Specialty business. The Zacks analyst is also optimistic about solid prospects in Pharmaceutical Distribution unit.

Avis (CAR) Gains from its Partnership with Alphabet's Waymo

The Zacks analyst believes that Avis Budget's partnership with Alphabet's Waymo is enabling it to leverage its capabilities to gain an in-depth knowhow of the technologies involved in autonomous cars.

New Downgrades

Mounting Expenses Continue to Hurt Washington Federal (WAFD)

Per the Zacks analyst, Washington Federal's operating expenses are likely to continue increasing owing to the integration charges related to Anchor deal and efforts to upgrade and digitize operations.

Steel Tariffs & Sluggish Crawler Market Ail Manitowoc (MTW)

Per the Zacks analyst, sluggish crawler and rough terrain markets, as well as increased raw material costs due to the imposition of 25% tariff on steel, will weigh on Manitowoc's results.

Lower Commercial Membership Ails UnitedHealth (UNH)

Per the Zacks analyst, membership loss in its fee based commercial business and Brazilian business will pull down the overall membership growth for UnitedHealth Group.

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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
 
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
 
AT&T Inc. (T) : Free Stock Analysis Report
 
Lennar Corporation (LEN) : Free Stock Analysis Report
 
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
 
Barclays PLC (BCS) : Free Stock Analysis Report
 
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