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Top Analyst Reports for Alibaba, Disney & Morgan Stanley

Mark Vickery

Thursday, December 12, 2019

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 Alibaba Group (BABA), Disney (DIS) and Morgan Stanley (MS). 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 >>>

Alibaba’s shares have outperformed the Zacks Internet Commerce industry year to date (8.2% vs. 8.1%). The Zacks analyst believes that the company’s increasing investments, uncertain economy and macro headwinds in China are major concerns. Also, rising competition poses a risk.

Alibaba reported strong fiscal second-quarter earnings driven by steady improvement in core commerce and solid growth in metrics. Further, Alibaba’s strengthening cloud business with its expanding customer base drove its performance. Notably, the New Retail strategy has gained momentum in the markets served by the company. This aided growth in Tmall Import and Hema fresh food grocery businesses.

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

Shares of Disney have gained 7% in the past three months against the Zacks Media Conglomerates industry’s rise of 6.1%. The Zacks analyst believes that Disney is expected to benefit from its solid slate of theatrical releases in the near term.

Disney reported impressive fourth-quarter fiscal 2019 results, driven by a solid top-line performance in the Studio Entertainment and DTC businesses. However, higher operating losses in the DTC segment and Media Networks’ operating income decline hurt profitability.

Moreover, Disney+ has gained more than 10 million subscribers within 24 hours of its launch, making it a key catalyst for the company’s prospects. However, the company anticipates higher operating losses in the DTC & International segment due to the ongoing investments. Moreover, increasing operating expenses related to domestic parks and resorts are expected to negatively impact profitability.

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

Morgan Stanley's shares have gained 15.1% over the past six months against the Zacks Investment Banking industry's rise of 10.2%. The Zacks analyst believes that the acquisition of Solium Capital is in sync with the company’s efforts to further strengthen its wealth management business.

The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Moreover, steady loan growth, strong balance sheet position and the company's continued focus on its corporate lending business are expected to continue to aid profitability.

However, weaknesses in investment banking and trading are expected to hinder fee income growth to some extent and hurt the company’s top line. Given the decline in interest rates and a tough operating backdrop, the company’s performance is expected to remain sluggish in the near term.

(You can read the full research report on Morgan Stanley here >>>)

Other noteworthy reports we are featuring today include Enbridge (ENB), Zoetis (ZTS) and Honda Motor (HMC).

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See the pot trades we're targeting>>

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

Alibaba (BABA) Drives On Cloud Growth; Investments Hurt

Strong Slate of Movies, Disney+ Adoption to Aid Disney (DIS)

Restructuring Efforts Aid Morgan Stanley (MS), Costs a Woe

Featured Reports

Enbridge (ENB) Banks on C$19B Midstream Growth Projects

The Zacks analyst expects Enbridge to generate stable fee-based revenues from C$19 billion worth of midstream projects. However, a rise in integrity expenses for gas transmission assets is concerning.

New Products, Acquisition Fuel Zoetis (ZTS) Amid Competition

Per the Zacks analyst, Zoetis companion animal business driven by higher sales of Apoquel and Simparica should maintain growth amid competition.

Honda's (HMC) Focus on Electric Cars to Aid Amid High Capex

The Zacks analyst believes that focus on the development of EVs and self-driving cars bodes well for the company.

Monster (MNST) Poised to Gain From Strong Energy Drinks Unit

Per the Zacks analyst, Monster Beverage has been witnessing solid momentum in its energy drinks category driven by its Monster Energy brand.

Restructuring to Aid Ingersoll-Rand (IR), Cost Woes Persist

Per a Zacks analyst, Ingersoll-Rand's (IR) restructuring moves - creating a global industrial company by combining its Industrial segment with Gardner, will be a boon.

Buyouts & Focus on Affordable Homes to Aid D.R. Horton (DHI)

D.R. Horton is well poised for fiscal 2020 given its industry-leading market share, solid acquisition strategy and focus on more entry-level affordable homes, per the Zacks analyst.

Solid Momentum in Vans to Boost Growth at V.F. Corp (VFC)

Per the Zacks analyst, V.F. Corp's Vans brand is displaying strength with double-digit growth across all regions, channels and categories.

New Upgrades

New Business Wins, Strategic Buyouts Aid State Street (STT)

Per the Zacks analyst, new business wins, synergies from strategic acquisitions, global footprints and strong liquidity position will continue to support State Street's profitability.

Passenger Traffic Growth, Buybacks Buoy Ryanair (RYAAY)

The Zacks analyst is impressed with traffic growth due to strong demand for air travel. Ryanair's efforts to modernize its fleet and initiatives to reward its shareholders are commendable too.

Increased Adoption of Robotic Products Aids iRobot (IRBT)

Per the Zacks analyst, impressive performance of iRobot's robotic business, fueled by growing adoption of Roomba and Braava products, should drive the company's revenues in the quarters to come.

New Downgrades

Sluggishness in trivago & Low ADR Hurt Expedia Group (EXPE)

Per the Zacks analyst, Expedia Group is suffering from weakness in trivago segment. Further, low ADR and high-cost marketing channels pose threat to its margins.

Soft Fuel Gallons Comp Sales a Concern for Casey's (CASY)

Per the Zacks analyst, Casey's is grappling with soft fuel gallons same-store sales for a while. Management cut fiscal 2020 same-store sales view for fuel and prepared food & fountain categories.

Pre-owned Products Sales a Concern for GameStop (GME)

Per the Zacks analyst, GameStop's pre-owned and value video game products sales has been witnessing soft sales. This may be due to declines across both hardware and software.

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Zoetis Inc. (ZTS) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
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