Top Analyst Reports for Netflix, PNC Financial & Mondelez

Thursday, March 29, 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 Netflix (NFLX), PNC Financial (PNC) and Mondelez (MDLZ). 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 Netflix’s shares have increased +48.9% over the last three months, significantly outperforming the Zacks Broadcast Radio and Television industry’s gain of +12.7% during the same period. The company’s efforts to attract viewers through investing in more regional programming are leading to robust addition of international subscribers.

The company remains confident of adding more subscribers as the trend of binge viewing is catching up fast. Netflix now has 117.58 million subscribers globally. The Zacks analyst thinks subscriber additions and expanding content portfolio are the key catalysts that will help Netflix to sustain growth going forward.

However, increasing market spends and higher investments on original/acquired content will continue to hurt profitability, at least in the near term. Rising competition is also a major concern.

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

Shares of PNC Financial have outperformed the Zacks Major Regional Banks industry over the last six months, increasing +10.6% vs. +3.8%. Further, the company has an impressive earnings surprise history. It hasn’t missed the Zacks Consensus Estimate for earnings in any of the trailing four quarters.

The Zacks analyst likes the company’s efforts to generate positive operating leverage through its cost-saving initiatives. Also, its focus on enhancing shareholders’ value through strategic acquisitions is encouraging. Further, efforts to expand middle market lending franchise and investments in digital products and services bode well for the company. Though, the company’s capital deployment activities do not seem sustainable, a strong balance sheet position keeps it well poised for growth.

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

Mondelez's shares have lost -1.2% over the last six months, outperforming the -6.9% decline of the Zacks Food Preparation industry. The Zacks analyst likes Mondelez’s attractive portfolio of iconic brands, commanding presence in impulsive categories and fast-growing emerging markets. Mondelez’ margins have remained constantly strong backed by cost savings and productivity gains.

Earnings estimates for 2018 and 2019 increased 3.8% and 4.7%, respectively, over the last 60 days, reflecting analysts’ confidence in the company’s future earnings. However, Mondelez’s volumes have been hurt since 2014 by the elasticity impact from higher pricing and category weakness because of soft consumer demand.

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

Other noteworthy reports we are featuring today include Enbridge (ENB), Baxter (BAX) and Red Hat (RHT).

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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

Netflix (NFLX) Rides on Original Content, Subscriber Growth

CIP Goals Support PNC Financial (PNC), Debt Burden High

Mondelez (MDLZ) Fights Weak Volumes with Cost-Saving Plans

Featured Reports

Belbuca Drives BioDelivery (BDSI), Generic Pressure Persists

Per the Zacks analyst, the improvement in prescription volumes for Belbuca bodes well for the company's long-term growth.

Investments, Customer Additions Aid Connecticut Water (CTWS)

The Zacks analyst believes Connecticut Water's investments intended to strengthen its water infrastructure and customer additions through acquisition and organic methods will boost its performance.

Higher Input Costs, Debt Levels to Hurt Crown Holdings (CCK)

Per the Zacks analyst, Crown Holdings' margins will bear the brunt of higher raw material costs due to the recently imposed steel and aluminum tariffs.

Brand Strength & Favorable Currency Rates to Aid PVH Corp. (PVH)

Per the Zacks analyst, PVH Corp.'s performance is expected to soar higher backed by robust brand strength and improvement in foreign currency rates.

Strong Deal Wins, Aggressive Cross-Selling Aid Red Hat (RHT)

According to the Zacks analyst, Red Hat is benefiting from strong deal wins and cross-selling of cloud-based technology.

Dull Pharmaceutical Arm & Pricing Pressure Irk Baxter (BAX)

Baxter expects its pharmaceutical business to remain flat on a year-over-year basis in 2018. Moreover, the Zacks analyst feels that pricing pressure will continue to persist.

Vale (VALE) Braves Iron-Ore Price Slump With Improved Yield

The Zacks analyst thinks that continued downside in iron-ore prices might negatively impact Vale's results.

New Upgrades

Technologies Unit, Dividends & Buybacks Aid Nokia (NOK)

The Zacks analyst is impressed by the company's efforts to reward its shareholders. Strong performance of its Technologies unit is also a positive.

Solid Retail Employee Benefits Brokerage Aids Arthur J (AJG)

Per the Zacks analyst, Arthur J. Gallagher solid growth is driven by both organic sales and acquisitions and thus has put steam behind its acquisition activity in retail employee benefits brokerage.

Strong Deal Wins, Aggressive Cross-Selling Aid Red Hat (RHT)

According to the Zacks analyst, Red Hat is benefiting from strong deal wins and cross-selling of cloud-based technology.

New Downgrades

Enbridge (ENB) Hurt by Negative Free Cashflow, Rising Debt

The Zacks analyst believes that the surge in long-term debt and negative free cashflow are hurting Enbridge's ability to finance midstream energy projects.

Northern Border Woes, High Debt Ail TC Pipelines (TCP)

Lower transportation rates at Northern Border Pipeline along with high leverage of over 68% have made the covering analyst turn bearish on the prospects of TC Pipelines.

Higher Costs, Margin Pressure Hurt Bank of the Ozarks (OZRK)

Per the Zacks analyst, increasing expenses are likely to hurt Bank of the Ozarks' bottom-line growth in the future. Also, pressure on margins despite improvement in rates remains a major concern.

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Red Hat, Inc. (RHT) : Free Stock Analysis Report
 
The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
 
Enbridge Inc (ENB) : Free Stock Analysis Report
 
Baxter International Inc. (BAX) : Free Stock Analysis Report
 
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