Top Research Reports for Disney, Kraft Heinz & Caterpillar

Monday, December 18, 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 Disney (DIS), Kraft Heinz (KHC) and Caterpillar (CAT). 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 >>>

Disney’s shares have increased +5.6% in the last one year vs. the Zacks Media Conglomerates industry’s -3.4% decline in that same time period. Disney is acquiring majority of Twenty-First Century Fox’s assets, which includes its Film and Television studios accompanied by cable and international TV businesses in a transaction worth $52.4 billion.

The deal provides a shot in the arm to Disney, which for quite some time now has been jostling in the fast changing media landscape, where rise in streaming and cord cutting have become the norm. The buyout of these assets would considerably enhance the media mogul’s bargaining power with Cable TV providers, increase affiliate fees, provide a fresh lease of life to ESPN and create cost synergies.

Further, the addition of Fox's rich library of movies and TV series would greatly enhance Disney’s prospects in the streaming service arena. Bob Iger will continue to spearhead the company through 2021 for a smooth integration of Fox’s assets into Disney.

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

Shares of Kraft Heinz have declined -8.9% year to date, underperforming the Zacks Diversified Food industry which is down -5.5% during the same period. Kraft Heinz’s cost savings have led to better profits amid a soft sales environment. The company expects between $1.7 billion and $1.8 billion of cumulative Integration Program savings by the end of 2017, primarily focused on work-force reductions, factory closures and consolidations.

Also, with growing awareness of the nutritional value of food products, the company is emphasizing on organic ingredients, reshaping its existing products and expanding into new categories. However, continued softness in sales has weighed on the company’s performance. Also, the trend in 2017 and 2018 earnings estimate revisions is not satisfactory as it has remained stable over the past 30 days.

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

Strong Buy-rated Caterpillar’s shares have gained +58.2% year-to-date, outperforming the Zacks Construction and Mining industry which has increased +56.4% over the same period. Caterpillar reported a 26% rise in global retail sales for the three months ended November 2017, marking the fastest pace since 2012. This was driven by improvement across all regions with construction, mining and energy reporting the best performances year to date.

Caterpillar's 2017 guidance of revenues of $44 billion and earnings per share of $6.25 reflects a year-over-year growth of 14% and 83%, respectively. Higher sales in Asia Pacific and North America, improved order rates and backlog will fuel growth in Construction Industries. Resource Industries will gain on higher aftermarket parts sales. Energy & Transportation will be buoyed by improved sale of engines into industrial applications, strength in onshore North America oil and gas and transportation. Further, ongoing efforts to reduce costs will help boost margins.

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

Other noteworthy reports we are featuring today include Constellation Brands (STZ), Humana (HUM) and Regeneron (REGN).

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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

Disney's (DIS) Buyout of Fox???s Assets to Fuel Growth

Kraft Heinz (KHC) Fights Sales Slump with Cost-Saving Plans

Cost Control, Improving End-Markets to Drive Caterpillar (CAT)

Featured Reports

Regeneron's (REGN) Eylea Drives Growth, Praluent Remains Weak

While Regeneron's Eylea and Dupixent continue to drive growth, sales of Praluent have failed to impress. The approval of new drugs will boost the top-line and reduce dependence on Eylea.

Pipeline Unit Drives Williams Companies (WMB) Amid High Debt

While the Zacks analyst believes that midstream assets and large scale projects will generate ample revenues and long-term growth, Williams Companies' high leverage of more than 71% remains a concern.

Cooper Companies' (COO) CooperVision Segment Holds Promise

Per the Zacks analyst, Cooper Companies' CooperVision segment is the key driver. The segment gains from the silicone hydrogel lenses, led by solid prospects in MyDay, Clariti and Biofinity platforms.

Humana (HUM) Grows on Medicare Business, Rising Costs Hurt

Per the Zacks analyst, although Humana's Government business (Medicare and Medicaid) continues to favor the top line, rising expenses put pressure on the margins.

Wireless Spectrum, Internet TV Services to Boost DISH (DISH)

Per the Zacks analyst, DISH Network should benefit from its wireless spectrum portfolio and Internet TV services.

Accretive Acquisitions Buoy Global Payments' (GPN) Revenues

The Zacks analyst views favorably consistent revenue growth at the company driven by several acquisitions, alliances and joint ventures.

Best Buy's (BBY) New Blue Strategy, Online Sales Bode Well

Per the Zacks analyst, Best Buy 2020: Building the New Blue strategy and sturdy online sales growth will continue to drive results higher.

New Upgrades

Brand Building Boosts Constellation Brands' (STZ) Market Share

Per the Zacks analyst, Constellation Brands' consistent focus on brand building and inclusion of new products are key revenue drivers. This helped it boost market share, mostly in U.S. beer category.

Lithium Unit, DuPont Crop Assets Buy Buoy FMC Corp. (FMC)

The Zacks analyst thinks FMC will gain from expansion actions in its lithium unit. The acquisition of DuPont's crop assets has also provided a major growth platform for its agricultural unit.

SO.F.TER. & Nilit Buyouts, Cost Cuts Drive Celanese (CE)

The Zacks analyst thinks that operational cost savings through productivity actions as well as SO.F.TER. and Nilit acquisitions should help Celanese achieve its earnings growth target for FY17.

New Downgrades

Drab Sales Trend Weighs on Archer Daniels (ADM)

Per the Zacks analyst, Archer Daniels drab sales trend due to a tough operating environment at the company's Agricultural services and Oilseeds Processing segments remains a concern.

Divestitures, Leveraged Balance Sheet Hurt VeriFone (PAY)

Per the Zacks analyst, divestiture of Petro Media and the Taxi businesses is hurting VeriFone's top-line growth. Moreover, leveraged balance sheet remains a drag on profitability.

Declining Revenues Hurt Community Health's (CYH) Margins

Per the Zacks analyst, frequent divestures have led to continuous decline in Community Health's revenues. Unfavorable top line has also affected the company's profitability adversely.

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Constellation Brands Inc (STZ) : Free Stock Analysis Report
 
Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
 
The Kraft Heinz Company (KHC) : Free Stock Analysis Report
 
Humana Inc. (HUM) : Free Stock Analysis Report
 
Walt Disney Company (The) (DIS) : Free Stock Analysis Report
 
Caterpillar, Inc. (CAT) : Free Stock Analysis Report
 
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