Top Analyst Reports for TOTAL S.A., Humana & Novo Nordisk

Thursday, November 16, 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 TOTAL S.A. (TOT), Humana (HUM) and Novo Nordisk (NVO). 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 >>>

Shares of TOTAL S.A. have gained +7.3% year to date, outperforming the Zacks Integrated International Oil industry which has increased +2.5% over the same period. The company’s third- quarter earnings topped expectations on solid operational performance, steadily decreasing breakeven production costs, improvement in the realized prices of commodities and new project ramp ups.

The Zacks analyst likes TOTAL’s new start-ups and acquisitions, which are helping it to boost production. Its decision to acquire Maersk Oil for $7.45 billion will further strengthen its position globally as an oil and gas operator.

Going forward, the company will continue to benefit from its cost management initiatives. However, fluctuating commodity prices, operations in some politically troubled regions and increasing competition could impact the company’s profitability. Due to its global presence, it is also exposed to risks associated with doing business abroad.

(You can read the full research report on TOTAL S.A here >>>).

Shares of Humana have underperformed the Zacks Health Maintenance Organization industry over the last one year, gaining +15.4% vs. 38.8%. Humana’s third-quarter 2017 earnings not only beat expectations but improved year over year driven by lower share count.

The Zacks analyst likes Humana’s strong government business. Its top line has been witnessing an uptrend for past many years. Sufficient generation of cash flow has helped the company take up several capital deployment initiatives aimed at enhancing shareholders’ value.

Humana’s sound balance sheet and disciplined capital management remains a positive. Its strong fundamentals are likely to help the stock gain momentum going forward. However, the company's individual commercial business has remained a drag over past few years.

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

Novo Nordisk's shares have outperformed the Zacks Large Cap Pharmaceuticals industry year to date (up +38.5% vs. +14.1%). Novo Nordisk’s earnings in third-quarter 2017 topped expectations but revenues missed the same. The Zacks analyst likes the company’s strong pipeline which mainly focuses on therapeutic proteins within insulin, GLP-1, blood clotting factors and human growth hormone.

The company's Diabetes segment is driven by strong performance of drugs like Victoza, Tresiba, Saxenda and Xultophy among others. However, continued growth from Victoza and Tresiba as well as higher contributions from Saxenda and Xultophy will be partly offset by the impact of lower realized prices in the United States, loss of exclusivity for products in hormone replacement therapy, intensifying competition within the diabetes and biopharmaceutics markets and macroeconomic conditions in many markets under International Operations.

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

Other noteworthy reports we are featuring today include Agilent (A), Target (TGT) and Xcel (XEL).

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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

TOTAL S.A. (TOT) Benefits From Start-Ups and Cost Savings

Humana's (HUM) Government Business Grows, Rising Costs Hurt

Novo Nordisk (NVO) Strong in Diabetes Space Amid Competition

Featured Reports

Target's (TGT) Omnichannel & Restock Program to Lift Margins

Per the Zacks analyst, Target's gross margin has been shrinking for a while now.

Xcel (XEL) to Gain From Renewable Focus, High Debts Ails

The Zacks analyst believes Xcel Energy's focus to increase production from renewable sources will drive its performance over the long run.

Digital Innovations Support Fidelity (FIS), Debt Level Hurts

Per the Zacks analyst, Fidelity is well poised to benefit from investment in mobile banking and innovative products such as PayNet and BuyWay.

Magellan's (MMP) Distribution Coverage Healthy, Debt a Woe

While appreciating Magellan Midstream's healthy distribution coverage and consistently growing payouts, the Zacks analyst remains concerned over the partnership's high debt-to-equity ratio.

Dividends, Buybacks & Contract Wins Buoy Harris Corp (HRS)

The Zacks analyst appreciates its efforts to reward shareholders through dividends & buybacks. Multiple contract wins by the company is broadening the product portfolio, thereby aiding its top line.

Lithium Expansion, Rockwood Buyout Drive Albemarle (ALB)

The Zacks analyst thinks that Albemarle is well placed to gain from expansion actions in its lithium unit, strong growth in the battery-grade lithium market and synergies of Rockwood Holdings buyout.

Agilent's (A) R&D, SG&A Expenses Constrain Margin Expansion

The Zacks analyst notes that heavy expenses on research and development, and selling, general and administrative activities are making margin expansion difficult for Agilent Technologies.

New Upgrades

Rowan (RDC) Banks on High-Spec Jackups, Eases Debt Burden

The Zacks analyst believes that Rowan's technologically advanced and versatile jack-up fleet will generate significant cash flow. Moreover, reducing debt strengthens the company's financials.

Debt Cuts, Action 2020 Initiatives Aid ArcelorMittal (MT)

The Zacks analyst is impressed with the company's actions to cut debt as well as reduce costs and expand high value products line under its Action 2020 initiative, which should boost its performance.

Strategic Investments to Boost DICK'S (DKS) Market Share

Per the Zacks analyst, DICK'S Sporting expects higher investments in e-commerce, stores technology and payroll, Team Sports HQ and private brands, which is likely to boost market share growth.

New Downgrades

Seasonal Business, High Debt to Hurt Central Garden (CENT)

Per the Zacks analyst, due to seasonality of business, chances of Central Garden & Pet generating significant sales in fourth-quarter is low. Also, higher debt level may impact its credit worthiness.

Andersons (ANDE) Hurt by Lower DDG Margins & Oversupply

Per the Zacks analyst, weak distillers-dried grains (DDG) margins due to vomitoxin-related woes will hurt Andersons' Ethanol Group. Oversupply in fertilizer industry may dent its Plant Nutrient group.

Supply Chain Issues to Restrain Ubiquiti's (UBNT) Operations

Per the Zacks analyst, Ubiquiti is facing issues with its sales channel and supply chain execution, which might hurt operations. Also, its Service Provider Technology segment is losing momentum.

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Xcel Energy Inc. (XEL) : Free Stock Analysis Report
 
TotalFinaElf, S.A. (TOT) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
 
Humana Inc. (HUM) : Free Stock Analysis Report
 
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
 
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