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Top Stock Reports for Toyota, CVS Health & 3M

Mark Vickery

Tuesday, December 10, 2019

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 Toyota Motor (TM), CVS Health (CVS) and 3M (MMM). 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 >>>

Toyota’s shares have outperformed the Zacks Foreign Automotive industry year to date (22.2% vs. 12.1%). The Zacks analyst believes that expanding portfolio of product lines is driving the firm’s sales.

In order to capitalize on the accelerated global shift to electric cars, the auto giant of Japan is deepening focus on developing electric and autonomous vehicles, which will bolster the company’s product competitiveness. Its healthy balance sheet, improving cash flows and investor-friendly moves are other positives. However, anticipating a slowdown in India, Indonesia and Thailand, the company narrowed its annual vehicle sales target for fiscal 2020.

High research and development expenses on advanced technologies for the development of EVs and driverless cars are likely to dent near-term margins. As such, investors are recommended to wait for a better entry point.

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

Shares of CVS Health have gained 17.2% in the past three months against the Zacks Retail Pharmacies and Drug Stores industry’s rise of 10.6%. The Zacks analyst is pleased with the company’s solid progress in terms of the 2020 selling season. It has started to witness increased customer traffic and incremental sales in pharmacy front store and MinuteClinics.

It successfully executed its strategic priorities, resulting in all three of the company’s segments performing in line with, or above its expectations. The Health Care Benefits segment, launched after the Aetna acquisition, is showing strong momentum.

The company posted better-than-expected third-quarter results on the back of robust progresses. However, persistent reimbursement pressure and the impact of recent generic introductions dented the company’s retail LTC business growth. Also, Omnicare business performance should continue to remain soft through the rest of 2019.

(You can read the full research report on CVS Health here >>>)

3M's shares have gained 0.5% over the past six months against the Zacks Diversified Operations industry's rise of 6.5%. The Zacks analyst believes that 3M stands to gain from the efforts to innovate products, restructuring actions and shareholder-friendly policies over the long run.

Its acquisition of the technology business of M*Modal is benefiting the health information systems business, while the Acelity buyout will likely strengthen the medical solutions business. In third-quarter 2019, the company’s earnings surpassed estimates by 4.5%, while sales lagged the same by 1.3%.

For 2019, 3M lowered its adjusted earnings per share guidance to $8.99-$9.09 from $9.25-$9.75 mentioned earlier. Organic sales will likely decline 1-1.5% versus previously mentioned 1% decline to 2% growth. Forex woes will likely adversely impact sales by 2%, while rising costs and restructuring charges might be concerning.

(You can read the full research report on 3M here >>>)

Other noteworthy reports we are featuring today include U.S. Bancorp (USB), Gilead Sciences (GILD) and Goldman Sachs (GS).

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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

Focus on Electric Cars to Aid Toyota (TM) Amid High Costs

CVS' (CVS) Aetna Integration Synergy Strong, PBM Season Solid

Health Care Business Aids 3M Company (MMM), High Costs Hurt

Featured Reports

Loan Growth Supports U.S. Bancorp (USB), Cost Woes Linger

Per Zacks analyst, U.S. Bancorp is well poised to enhance interest income driven by steady growth in loans and economy recovery aiding interest rates. However, rising costs is an unfavorable factor.

Solid HIV Franchise Fuel Gilead (GILD) Amid Weak HCV Segment

Per the Zacks analyst, Gilead's strong HIV franchise maintains momentum amid a dwindling HCV franchise.

Goldman (GS) Exhibits Cost Control; Legal Issues Linger

Per the Zacks analyst, Goldman depicts cost control efforts to drive operational efficiency.

Archer Daniels' (ADM) Readiness Program to Bolster Growth

Per the Zacks analyst, Archer Daniels' Readiness program targets business growth, standardized functions and enriched experience.

International & Offshore Projects to Boost Halliburton (HAL)

The Zacks analyst believes rising international activity and higher offshore spending should aid Halliburton but is concerned about weak oilfield services demand in North American land sector.

Yum China (YUMC) Banks on Sales Initiatives Amid High Costs

Per the Zacks analyst, Yum China's store opening strategy, menu innovation and digital initiatives bode well. However, increased costs from labor, rent and operational initiatives are concerns.

Marvell (MRVL) Rides On Solid Product Portfolio, Acquisitions

Per the Zacks analyst, Marvell is gaining from high demand for its OCTEON processors, Ethernet switch and PHY products.

New Upgrades

H&R Block (HRB) to Benefit From Growth of the Tax Industry

The Zacks analyst believes that H&R Block looks well poised to gain from opportunities offered by a growing tax industry in both assisted and DIY channels.

Acquisitions, Revenue Growth Aid Select Medical (SEM)

Per the Zacks analyst, the acquisitions made by the company have added to its scale and size. Moreover, revenues have risen over the years on the back of its high-quality healthcare services.

Charles River (CRAI) Benefits From Strong Global Network

Per the Zacks Analyst, Charles River's global network allows it to work with world's leading professionals on multiple issues. This helps expand its geographic footprint and benefits the top line.

New Downgrades

Weak Used Vehicle Sales & High Capex Plague Ryder (R)

Per the Zacks analyst, weak freight conditions are taking a significant toll on Ryder's used vehicle sales. Amid this bleak scenario, the company's high capital expenditures are quite concerning.

Higher Marketing Investments Hurt SINA's (SINA) Bottom-Line

Per the Zacks Analyst, higher marketing investment on news app, Weibo app and finance is hurting SINA's profitability. Moreover, intensifying competition is a concern.

Macro Headwinds and Contracting Margins Hurt Avnet (AVT)

Per the Zacks analyst, soft industrial and automotive markets due to weakness in Asia and Europe are hurting Avnet's top line. Also, shorter lead times and lower pricing are affecting margins.

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U.S. Bancorp (USB) : Free Stock Analysis Report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
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