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Top Stock Reports for BP Plc, Mitsubishi UFJ & Netflix

Mark Vickery
WF vs. BEN: Which Stock Is the Better Value Option?

Wednesday, November 22, 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 BP Plc (BP), Mitsubishi UFJ (MTU) and Netflix (NFLX). 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 >>>

Strong Buy ranked BP’s shares are up +4.7% in the year-to-date period, outperforming the Zacks International Integrated Oil industry (up +1.5%). The Zacks analyst likes the British energy giant’s renewed share repurchase program. Moreover, a rising cash balance over the last three quarters reflects the strength in BP’s financials. The integrated player expects its major upstream projects like Clair Ridge and Juniper developments to fetch significant cash flow starting 2020 and beyond. For financing the upstream developments, the company’s decision to divest Bruce assets is commendable. Moreover, the integrated firm has commenced natural gas production at the Khazzan field, expected to have an inventory of 300 drilling wells. Importantly, BP expects to boost its daily natural gas production from the Khazzan prospect to 1.5 billion cubic feet once the second phase of the development comes online.

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

Shares of Mitsubishi UFJ have underperformed the Zacks Foreign Banks industry in the last six months, gaining +5.9% vs. +9.4%. Increase in the company’s profits can be attributed to elevated gross profits and credit reversal in the first six months of fiscal year ended Mar 31, 2018. However, rise in general & administrative expenses and reduced net interest income were undermining factors. Though the negative interest rates in Japan and global growth concerns along with strict regulations are headwinds, strong capital ratios and organic growth are likely to drive the company’s bottom-line growth. Also, the company’s prospects look encouraging, as it focuses on several strategies under its medium-term business plan (2016-2018) and global expansion.

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

Netflix’s shares have vastly outperformed the Zacks Broadcasting industry, gaining +66.8% vs. +12.5% in the past one year. Netflix’s growing subscriber base is the primary factor that helps it generate significant revenues.  The company’s investments in regional programming help it to draw more international subscribers. The company remains confident of adding more subscribers as the trend of binge viewing is catching up fast. Netflix now has over 109 million subscribers globally. The Zacks analyst thinks continuing subscriber additions and expanding content portfolio are the key catalysts that will help Netflix to sustain growth going forward. However, higher investments on original/acquired content will continue to hurt profitability, at least in the near term. Stringent competition from other well-established players also poses a major concern.

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

Other noteworthy reports we are featuring today include Hormel (HRL), Raymond James (RJF) and Archer Daniels (ADM).

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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

BP Plc (BP) Banks on Juniper Gas Project, Cash Balance Rises

Acquisitions Aid Mitsubishi UFJ (MTU), High Expenses A Woe

Netflix's (NFLX) Content Portfolio Solid, High Costs a Worry

Featured Reports

Fujifilm (FUJIY) Banks on VISION2019, Document Business Ails

The Zacks analyst thinks that the VISION2019 plan as well as strength in Imaging and Information businesses will boost Fujifilm's near-term results. However, weakness in the Document Solution business

United Therapeutics' (UTHR) Pipeline Strong Amid Competition

The Zacks analyst likes United Therapeutics' efforts to develop new delivery mechanisms for Remodulin and expanded indications for other PAH drugs like Orenitram and Tyvaso amid increased competition.

Murphy Oil (MUR) to Gain from Cost Savings & Low Cost Assets

The Zacks analyst believes Murphy Oil will benefit from its cost savings initiatives. Its new low cost onshore assets in Midland Basin and offshore Brazil will further drive performanc

Penske (PAG) Rides on Rising Dealerships, Inventory Ails

Per the Zacks analyst, Penske aims at boosting earnings by raising retail automotive & commercial truck dealership network. But, high proportion of inventory in current assets can hurt its liquidity.

Hormel (HRL) Fights Turkey Pricing Trouble With New Buyouts

The Zacks analyst thinks that new acquisitions (like Columbus buyout) and higher demand will boost Hormel's near-term profits.

Archer Daniels' (ADM) Cost Savings Initiatives to Aid Growth

Per the Zacks analyst, a key part of Archer Daniels' long-term strategy is strengthening business through increased cost savings.

Raymond James (RJF) Steadily Growing Through Acquisitions

Per the Zacks analyst, efforts to expand through acquisitions and increase in loan balances will aid revenues.

New Upgrades

Capacity Discipline, Debt Cuts Buoy GOL Linhas (GOL)

The Zacks analyst appreciates the company's efforts to reduce debt levels. Its focus on capacity discipline should result in improvement in yields. Efforts to modernize its fleet also raise optimism.

Solid E-commerce Momentum to Bolster Hibbett's (HIBB) Sales

Per the Zacks analyst, Hibbett is poised to gain from its new e-commerce site that helped contribute 5% to sales in third-quarter due to early marketing plan and strong conversion from online traffic.

Conagra (CAG) to Boost Profitability With Inorganic Growth

The Zacks analyst thinks that strategic inorganic moves such as divestiture of the Wesson brand or the buyout of Duke's brand will boost Conagra Brands profitability in the upcoming quarters.

New Downgrades

Aerie (AERI) Solely Dependent on Approval Of Rhopressa

Per the Zacks analyst, Aerie's growth prospects depends on approval of lead candidate Rhopressa. The delay in regulatory filing was disappointing and any further delays will be detrimental.

Low Margin, Soft Acquired Business to Hurt Dycom (DY)

Per the Zacks analyst, margin pressure due to Dycom's adverse mix of work activities is weighing on its profitability. Reduced contributions from the acquired business also remain a concern.

Operating Costs Weigh on Kirkland's (KIRK) Bottom Line

Per the Zacks analyst, higher operating costs have been a headwind for Kirkland's for a while now. In third quarter, greater store labour, freight and advertising costs hurt Kirkland's bottom line.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Raymond James Financial, Inc. (RJF) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Mitsubishi UFJ Financial Group Inc (MTU) : Free Stock Analysis Report
Hormel Foods Corporation (HRL) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
Archer-Daniels-Midland Company (ADM) : Free Stock Analysis Report
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