Top Stock Reports for Duke Energy, Stryker & Sanofi

Wednesday, August 23, 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 Duke Energy (DUK), Stryker (SYK) and Sanofi (SNY). 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 >>>

Duke Energy shares have outperformed the broader market as well as the peer utilities space in the year-to-date period (it is up more than 15%). Duke Energy’s second-quarter 2017 earnings missed expectations and also declined from year-ago figure. The downturn was mainly due to the absence of International Energy that was sold in December 2016, less favorable weather and higher income tax expense.

However, revenues surpassed the consensus mark and improved year over year. The Zacks analyst likes the company’s hefty investment plans for the next five years. These plans are likely to improve its business by generating cleaner energy and bolstering its renewable asset base.

Moreover, Duke Energy pursues a systematic asset divestment initiative that buoys optimism. Nevertheless, the company faces challenges from severe weather conditions and natural calamities like hurricanes, which may result in breakdown and damage its infrastructure.

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

Shares of Stryker have gained +13.2% over the last six months, outperforming the Zacks Medical Products industry, which has gained +7.5% over the same period. Stryker exited the second quarter on a solid note, beating expectations on both counts. Solid performance in the MAKO platform drove revenues.

The Zacks analyst likes Stryker’s upbeat guidance for the full year and its diversified product portfolio. Continued strong demand for hemorrhagic and ischemic stroke products and neuro-powered instruments boosted sales in the neurotechnology segment.

However, volatility in foreign currency exchange is likely to impede revenue growth. Stryker also faces supply-side headwinds and has been grappling with issues in the spine business for long. Also, China might prove to be a challenging market.

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

Sanofi’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry year to date, gaining +22.5% vs. +13.5%. Sanofi reported in-line earnings in Q2 but missed sales expectations. However, the company raised full year earnings forecast.

The Zacks analyst likes Sanofi’s focus on streamlining its business and pursuing business development deals. The company has several new products in its portfolio and candidates in its pipeline that can contribute to long-term growth. New drugs like Aubagio and Lemtrada are likely to continue doing well. Sales prospects of Dupixent are another positive, which could prove to be an important growth driver. The recent FDA and EU approval of Kevzara for rheumatoid arthritis is also encouraging.

However, headwinds include a bleak outlook for the Diabetes franchise, generic competition for many drugs and slower-than-expected uptake of new products like Praluent.

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

Other noteworthy reports we are featuring today include PPL Corp (PPL), Coty (COTY) and Viacom (VIAB).

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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

Solid Capex Plans Aid Duke Energy (DUK), Penalties May Hurt

MAKO Robotic Unit Aids Stryker (SYK) amid Supply Challenges

Sanofi (SNY) Focusing on Dupixent, Diabetes Unit Sales Fall

Featured Reports

Agrium (AGU) to Gain from Retail Expansion, Potash Merger

The Zacks analyst thinks Agrium should benefit from expansion of its retail business through strategic acquisitions. The proposed merger with Potash Corp. should also create significant synergies.

NRG Energy's (NRG) Adopts Transformation Plan to Reduce Debt

The Zacks analyst believes NRG Energy's Transformation Plan will help it to lower its debt level through recurring cost cuts and margin improvements.

PPL Corp (PPL) to Pump $13B into Infrastructure, Weather Ails

The Zacks analyst believes PPL Corp. is benefiting from consistent investments to strengthen its infrastructure.

Revival Efforts Aid Viacom (VIAB), Domestic Ad Revenues Ail

The Zacks analyst is impressed by the company's efforts to revive its fortunes under CEO Bob Bakish. Declining domestic advertisement revenues however, remain a concern.

Coty (COTY) Gains From Acquisitions, Rising Costs a Concern

Per the Zacks analyst, although Coty has been benefiting from the acquisitions of ghd and Younique, it has been incurring higher marketing investment and fixed costs to support the momentum.

Martin Marietta (MLM) Rides on Solid Residential Activity

The covering analyst stresses that Martin Marietta benefits from continued strength in residential construction activities across the company's geographic footprint.

EQT Corp's (EQT) Utica Focus Offsets High Processing Costs

EQT Corp's strong focus on the natural gas rich Utica shale play will create long-term value for stockholders. However, rising processing costs are a concern, according to the Zacks analyst.

New Upgrades

Itron (ITRI) Rides on Comverge Buyout, OpenWay Riva Solution

The Zacks analyst expects Itron to gain from focus on expanding outcome-based solutions utilizing the OpenWay Riva platform. The Comverge buyout will boost Itron's energy management solutions.

Online Sales and New Stores to Aid Kirkland's (KIRK) Growth

Per the Zacks analyst, Kirkland's is witnessing continued momentum in online activities driven by website traffic. New store openings and better trends in existing stores are also driving sales growth

TransUnion (TRU) Buoyed by Solid Demand Due to Data Breaches

Per the Zacks analyst, increased risk of identity theft due to data breaches and higher consumer awareness about the usage of credit information are propelling demand for TransUnion's products.

New Downgrades

Soft Victoria's Secret Sales Continues to Hurt L Brands (LB)

Per the Zacks analyst, L Brands continues to face short-term challenges on account of its decision to exit the swimwear category, which is hampering its Victoria's Secret Stores sales.

Pricing Pressure from OEMs Weighs on BorgWarner (BWA)

Price cuts for original equipment manufacturers (OEMs) is a common practice for BorgWarner. Per the Zacks analyst, its inability to pass on any rise in raw material costs to the OEMs hurts its profit.

Applied Industrial's (AIT) Growth Hit by Currency Headwinds

The Zacks analyst thinks adverse foreign currency translation might continue to dent Applied Industrial's near-term revenues. Its Q4 revenues dipped 0.4% year over year, marred by currency headwinds.

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Viacom Inc. (VIAB) : Free Stock Analysis Report
 
Stryker Corporation (SYK) : Free Stock Analysis Report
 
Sanofi (SNY) : Free Stock Analysis Report
 
PPL Corporation (PPL) : Free Stock Analysis Report
 
Duke Energy Corporation (DUK) : Free Stock Analysis Report
 
Coty Inc. (COTY) : Free Stock Analysis Report
 
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