Top Stock Reports for Procter & Gamble, PetroChina & Biogen

Monday, October 2, 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 Procter & Gamble (PG), PetroChina (PTR) and Biogen (BIIB). 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 Procter & Gamble’s estimates are trending upward over the last 60 days, hinting analysts’ optimism about the company. P&G is known for 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.

Procter & Gamble is speeding up innovations and investments to counter the softening industry growth. Its productivity improvements and cost-saving efforts are also consistently helping to boost profit level. However, major foreign exchange headwind, weak volumes, divestitures and slowing market growth have been hurting sales.

A soft consumer-spending environment in developed markets and uncertainties in emerging countries also add to the worries. Shares of Procter & Gamble have underperformed the Zacks Soap and Cleaning Materials industry so far this year (+8.2% vs. +18.1%).

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

ADRs of PetroChina have declined -12.6% over the last six months, underperforming the Zacks International Integrated Energy industry, which has gained +6.2% over the same period. But with higher oil prices helping the state-run giant report a jump in first-half profits, the stock might return to favor.

The energy titan's biggest unit – exploration and production – swung to profitability as oil price soared 50%. PTR also experienced strong natural gas demand, while operational optimization helped control costs. However, the analyst is concerned over China’s decision to cut natural gas prices for industrial users that reduced margins in PTR’s gas-wholesale business.

A limited international operation and an ambitious investment program give investors more reason to be cautious on the stock. Hence, while being incrementally positive on PTR, the analyst expects the ADRs to remain soft.

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

Shares of Buy-rated Biogen have outperformed the Zacks Biomedicals/Genetics industry in the last six months (+14.8% vs. +13.3%). Biogen has a strong position in the MS market, backed by a wide range of products. Newly launched Spinraza for spinal muscular atrophy is also off to a promising start.

Spinraza has witnessed faster-than-expected adoption in the U.S. and Biogen is ramping up launch efforts outside the U.S. The Zacks analyst is also encouraged by Biogen’s efforts to diversify beyond MS to other areas like Alzheimer’s.

The company also spun off its hemophilia business in Feb 2017, which allows it to focus on neurology, its key area of expertise. Estimates have moved up ahead of the Q3 earnings results. The company has a positive record of earnings surprises in recent quarters.

However, Biogen has its own set of challenges. Despite its position in the MS market, the emergence of new PML cases for Tecfidera are likely to weigh heavily on the stock along with pipeline setbacks. Meanwhile, the recent Ocrevus launch by Roche may create pressure on Tysabri’s sales.

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

Other noteworthy reports we are featuring today include Accenture (ACN), Halliburton (HAL) and Norfolk Southern (NSC).

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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

Procter & Gamble (PG) Rides on $10 Billion Cost Saving Plan

Upstream Unit Boosts PetroChina (PTR), Gas Price Cut a Woe

Biogen's (BIIB) Diversifies Beyond MS, Spinraza Starts Solid

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Higher Premiums Aid American Financial's (AFG) Earnings

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McCormick's (MKC) Focus on Acquisition to Offset Cost Woes

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Ingersoll (IR) Focuses on High Efficiencies to Boost Margin

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Jet Sales Demand, Raised '17 View Aid L3 Technologies (LLL)

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Norfolk (NSC) Buoyed by Cost Cuts Amid Automotive Unit Woes

The Zacks analyst likes the company's efforts to check costs. Efforts to reward shareholders also raise optimism.

New Upgrades

Accenture (ACN) Banks on Acquisitions, '18 View Positive

The Zacks analyst believes that Accenture's sustained focus on enhancing capabilities through acquisitions (37 in fiscal 2017) is a key catalyst. The company provided positive fiscal 2018 guidance.

Healthcare Contract Wins, Restructuring Benefits Jabil (JBL)

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Big Investment Plan Continue to Aid Consolidated Edison (ED)

Per the Zacks analyst, Consolidated Edison's huge investment plan provisions for its infrastructure development and expansion of renewable assets will boost its future growth.

New Downgrades

Halliburton (HAL) Wrecked by Middle East Pricing Pressure

Pricing pressure in international markets, particularly the Middle east, and the failure of Baker Hughes acquisition, has made the Zacks analyst turn bearish on Halliburton.

American Airlines (AAL) Stung by Unit Revenue & Debt Woes

The company's Q3 results are likely to hurt by the recent Hurricanes and high fuel costs. It has trimmed its Q3 unit revenue view. The company's high debt levels also worry the Zacks analyst.

Lowered Q3 View, Valspar Charges Hurt Sherwin-Williams (SHW)

Per the Zacks analyst, disruptions from recent hurricanes and hefty Valspar acquisition charges will dent Sherwin-Williams' Q3 earnings. The company has cut its earnings outlook for Q3.

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PetroChina Company Limited (PTR) : Free Stock Analysis Report
 
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
 
Norfolk Souther Corporation (NSC) : Free Stock Analysis Report
 
Halliburton Company (HAL) : Free Stock Analysis Report
 
Biogen Inc. (BIIB) : Free Stock Analysis Report
 
Accenture PLC (ACN) : Free Stock Analysis Report
 
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