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Analyst Reports for Alphabet, Morgan Stanley, Abbott & Others

Wednesday May 24, 2017

Today's Research Daily features new research reports on 16 major stocks, including Alphabet (GOOGL), Morgan Stanley (MS) and Abbott (ABT). You can see all of today’s research reports here >>>

Buy rated Alphabet shares are up +22.4% in the year-to-date period vs. the +15% gain for the Zacks Technology sector and +7.4% gain for the S&P 500 index, with the stock getting a boost from the better than expected Q1 earnings report on April 27th (the stock has gained in excess of +10% since then). The Zacks analyst points out the company's good execution to date, more or less maintaining its dominant share in the competitive, fast-growing search market. The company's focus on innovation, strategic acquisitions and Android OS should continue to generate strong cash flows. However, the promise of Google's non-search businesses continue getting pushed into future even as the company's spending keeps rising. (You can read the full research report on Alphabet here >>>)

Morgan Stanley shares have outperformed the Zacks Finance sector over the last one year, gaining +52.5% versus the sector’s +16% increase.  In comparison, Goldman Sachs shares are up +36.4% in that time period. The Zacks analyst likes the company’s efforts to offload its non-core assets to lower balance-sheet risks and shift focus toward less capital-intensive businesses. Moreover, it remains on track to achieve its expense saving target of $1 billion by the end of this year. However, equity trading income distress, new regulatory requirements and intense pricing competition are concerns though the regulatory burden is expected to come down going forward. (You can read the full research report on Morgan Stanley here >>>)

Abbott shares have outperformed the Zacks Medical sector in the year-to-date period (the stock is up +13.6% vs. +7.2% gain for the sector) on the back of greater appreciation for the company's strategic repositioning through acquisitions/divestitures. The St. Jude Medical buyout will complement its cardiovascular devices business. Also, the company’s plans to focus on selling its portfolio in core therapeutic areas. Meanwhile, weakness in the nutrition business in China and sluggish growth in the Venezuelan market is a concern. (You can read the full research report on Abbott here >>>)

Other noteworthy reports we are featuring today include Waste Management (WM), General Mills (GIS) and Raytheon (RTN).

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Today's Must Read

Alphabet (GOOGL) Rides on Innovation and Diversification

Morgan Stanley's (MS) Cost Cutting to Aid Bottom Line Growth

Dull Pediatric Sales Hurt Abbott (ABT) amid St Jude Synergy

Featured Reports

Newfield's (NFX) Q1 Earnings Beat, Revenues Miss

The Zacks analyst agrees that higher output and oil price realizations supported Newfield's Q1 earnings beat.

Packaging Corporation (PKG) Beats on Q1 Earnings & Sales

The covering analyst expects Packaging Corporation to gain from price hike, buyouts and diverse product portfolio. Escalating expenses and constant price inflation on recycled fiber pose concerns.

Goodyear Tires (GT) Beats Q1 Earnings, Tire Volume Down Y/Y

The Zacks analyst thinks new product and service launches will further boost revenue but high raw material costs and lower demand remain concerns.

ViaSat (VSAT) Beats on Q4 Earnings, End Markets Thrive

ViaSat Q4 earnings beat on robust top-line growth. Going forward, booming satellite & government businesses and robust backlog levels are expected to offset high expenditures, thus stoking growth.

Toll Brothers (TOL) Poised to Grow Post Solid Q2 Earnings

The Zacks analyst remains upbeat about Toll Brothers post Q2 earnings. Despite risks to gross margin, it is poised to grow on strong housing demand and lack of competition in the luxury home market.

Raytheon's (RTN) Contract Wins Impress, Competition a Woe

The covering analyst thinks Raytheon has a distinct focus on its overseas business and foreign military contracts continue to be the vital growth driver.

Micron (MU) Set On Expansion Trajectory, Risks Continue

The Zacks analyst believes that improving prices for DRAM and NAND chips along with the acquisitions will drive the company's top-line growth in the foreseeable future, despite persisting risks.

New Upgrades

Avery Dennison (AVY) To Grow on Proper Strategy Execution

The Zacks analyst appreciates Avery Dennison's consistent execution of strategies that continue to enhance its competitive advantage, while driving profitable growth and improving returns.

Waste Management (WM) Remains Focused on Core Business

Waste Management is executing well on its initiatives to refocus on the core business activities and instil price and cost discipline to achieve better margins. It aims to focus on customer retention.

Intuitive Surgical (ISRG) Well Poised on da Vinci Platform

The covering analyst thinks Intuitive Surgical is gaining from growing procedural volumes of the da Vinci system. The company's CE Mark approval for the platform in the recent past is a key catalyst.

New Downgrades

Ralph Lauren (RL) Issues Soft View Despite Q4 Earnings Beat

The covering analyst thinks Ralph Lauren's fourth-quarter sales were weak due to currency woes, soft traffic and inventory reduction efforts. These factors are expected to hurt sales in fiscal 2018.

General Mills' (GIS) North America Segment Sales Weak

The Zacks analyst stresses that sales and profits at General Mills' North America segment, contributing 66% to its sales, have been soft due to lower demand amid changing consumer food preferences.

Conagra Brands Inc. (CAG) Slips to Sell on Macro Headwinds

Conagra reported weaker-than-expected third-quarter fiscal revenues. Its near-term profitability will be hit by headwinds like a stronger U.S. dollar, input price inflation or stiff industry rivalry.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
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