Top Stock Reports for Alphabet, PNC Financial & Accenture

Tuesday, December 26, 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 Alphabet (GOOGL), PNC Financial (PNC) and Accenture (ACN). 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 Alphabet’s shares have outperformed the Zacks Internet Services industry in the year to date period (the stock is up +34.9% vs. +26.3% gain for the sector). Alphabet's strong advertising revenues and improving paid click growth remain the growth drivers. Its focus on innovation, AI, cloud, home automation space, strategic acquisitions and Android OS should continue to generate strong cash flows. The Zacks analyst likes Alphabet’s strong execution, which has helped the tech giant maintain its dominant share in a competitive, fast-growing search market. Its diversification strategy is also positive, but requires significant investment and involves uncertain payback periods, particularly since these efforts are at the cutting edge of technology. However, increasing litigation issues could continue to impact the company’s profits.

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

Shares of Buy rated PNC Financial have outperformed the Zacks Major Regional Banks industry so far this year, increasing +25% vs. +20.2%. The performance has been supported by the company’s impressive earnings surprise history. The stock hasn’t missed earnings expectations 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. Its deal to acquire the commercial and vendor finance business of ECN Capital is anticipated to be marginally accretive to earnings in 2017. Recently, following the Fed interest rate hike, the company has increased its lending rate to 4.50%. However, the company’s capital deployment activities do not seem sustainable and a stretched valuation reflects limited upside potential.

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

Accenture’s shares have outperformed the Zacks Consulting industry in the year to date period, gaining +31.4% vs. +28.1%. The company offers management consultancy, technology and outsourcing services. Accenture delivered impressive Q1 results with both the top and bottom lines surpassing expectations and improving year over year. In addition, the company provided an encouraging Q2 and FY18 outlook. The Zacks analyst likes Accenture’s latest product additions in the analytics application space, given the increasing demand for digital solutions. Moreover, Accenture’s strategy of growing through partnerships like Apple and acquisitions like IBB Consulting and VERAX are encouraging. The strategies have enabled Accenture to enter new markets, diversify and broaden its product portfolio, and maintain its leading position. Nonetheless, Accenture’s announcement of creating new jobs and investment plan of $1.4 billion for in the U.S. may dent its bottom-line results.

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

Other noteworthy reports we are featuring today include General Dynamics (GD), Micron (MU) and Royal Caribbean (RCL).

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Mark Vickery

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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

Alphabet (GOOGL) Rides on Innovation and Diversification

CIP Goals, Easing Margin Pressure Aid PNC Financial (PNC)

Accenture (ACN) Rides on Acquisitions, '18 View Positive

Featured Reports

Royal Caribbean's (RCL) Double-Double Offsets Cost Concerns

The Zacks analyst believes that Royal Caribbean's Double-Double program is contributing significantly toward improving EPS and revenue yields amid increasing operating costs.

Rising Rates, Loan Growth Aid KeyCorp's (KEY) Profitability

Per the Zacks analyst, loan and deposit growth, rising interest rates, potentially lesser regulations and inorganic expansion efforts will support KeyCorp. Also, lower tax rates will aid profitability

Conagra (CAG) Braves Cost Inflation with New Acquisitions

The Zacks analyst thinks that higher sales and latest Angie's Artisan and Sandwich Bros. buyouts will boost Conagra's near-term results.

Brown-Forman's (BF.B) Solid Underlying Sales to Boost Growth

Per the Zacks analyst, Brown-Forman delivered fifth straight underlying sales growth in second-quarter due to strength in focus categories and brand portfolio.

Wynn Resorts (WYNN) Grapples With High Debt Burden

The Zacks analyst believes that a high debt burden makes it difficult for Wynn Resorts to finance its upcoming projects.

Cboe Global (CBOE) Set to Grow on Increasing Trading Volume

Per the Zacks analyst, Cboe Global's increasing transaction fees driven by trading volume growth position the company well for long term growth.

Strategic Deals, Loan Growth Aid Raymond James (RJF)

Per the Zacks analyst, Raymond James remains well poised for organic as well as inorganic growth, supported by persistent rise in loan balances, a solid balance sheet and liquidity position.

New Upgrades

Micron (MU) to Benefit From Improved DRAM Pricing & Demand

The Zacks analyst believes that Micron will continue to benefit from improved pricing and demand for DRAM chips owing to strong demand from PC, server and smartphone makers.

Las Vegas Sands (LVS) Rides on Mass and Non-Gaming Segments

The Zacks analyst believes that Las Vegas Sands' EBITDA margins are improving consistently owing to focus on mass and non-gaming segments that carry higher margins.

Strength in Credit Card Business Aids Capital One (COF)

Per the Zacks analyst, strength in credit card and online banking businesses positions Capital One well for revenue growth. A diversified loan portfolio is another positive for the company.

New Downgrades

Celgene (CELG) Efforts To Expand Revlimid Fail, Otezla Weak

Per the Zacks analyst, the company's efforts to expand Revlimid's label suffered a setback with the failure of a late-stage study. The weakness in Otezla sales persist which will impact the top-line.

Fierce Rivalry, Currency Risk to Hurt General Dynamics (GD)

Per the Zacks analyst, General Dynamics faces tough competition from its peers in the aerospace-defense industry. Also, it faces currency fluctuations which at times may hinder the company's growth.

Cord-Cutting, High Debt Level Weigh on Charter (CHTR)

Per the Zacks analyst, Charter continues to lose video subscribers due to stiff competition and cord-cutting. High debt level and saturated multi-channel video market are other headwinds.

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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
 
PNC Financial Services Group, Inc. (The) (PNC) : Free Stock Analysis Report
 
Micron Technology, Inc. (MU) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
General Dynamics Corporation (GD) : Free Stock Analysis Report
 
Accenture PLC (ACN) : Free Stock Analysis Report
 
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