Top Stock Reports for Raytheon, Simon Property Group & Anthem

Thursday, September 14, 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 Raytheon (RTN), Simon Property Group (SPG), and Anthem (ANTM). 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 Raytheon shares have risen around +28.4% year-to-date, outperforming the Zacks Defense Equipment industry, which has increased +22.9% over the same period. The Zacks analyst thinks Raytheon is one of the best-positioned large-cap defense players due to its non-platform-centric focus.

Thanks to its wide range of combat-proven defense products, the company continues to receive scrumptious orders from both Pentagon as well as foreign allies of the nation. In particular, its Patriot missile-defense systems have been seeing increased number of buyers, lately.

Moreover, the company is a strong cash generator, which allows it to pay attractive dividend per share to its shareholders. On the flip side, factors like tough competition, budget deficits and political uncertainty continue to be major headwinds for Raytheon.

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

Shares of Simon Property Group have been under pressure recently and have underperformed the Zacks Retail REIT industry in the year-to-date period (-6.6% vs. -2.3%). Simon Property recently announced that Flying Tiger Copenhagen — the Danish brand — will open outlets in four of its shopping centers. The company also sued Starbucks refraining it from closing 78 of its Teavana stores in Simon’s malls.

The Zacks analyst likes Simon’s efforts to support omni-channel retailing as well as its portfolio-restructuring initiatives and healthy balance sheet. However, mall traffic has been facing challenges due to a shift in shopping patterns, with online shopping taking precedence over in-store purchase.

Though the company is making efforts to counter the pressure through various initiatives, implementation of such measures is anticipated to limit any robust growth in its profit margin in the near term. Also, the Fed’s rate hike has added to its woes.

(You can read the full research report on Simon Property Group here >>>).

Buy-rated Anthem’s shares have gained +54.7% over the last one year, outperforming the Zacks Health Maintenance Organization industry’s increase of +47.6%. The Zacks analyst likes the company’s diverse product portfolio, which has helped in improving underwriting results.

Anthem’s strategic acquisitions, divestitures and ACO arrangements further pave the way for long-term growth. Its rising level of medical membership continues to boost its top line. The company’s strong capital position backs effective capital deployment. Its frequent share buyback programs and regular dividend payments primarily aim at enhancing shareholders’ value.

The company has seen the Zacks Consensus Estimate for 2017 and 2018 earnings being revised upward over the last 60 days. Followed by strong results in first half of 2017, the company has raised the earnings and revenue guidance for 2017.

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

Other noteworthy reports we are featuring today include Public Service Enterprise (PEG), Adobe (ADBE) and Travelers (TRV).

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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

Solid FMS Orders, Patriot Missile Demand Aid Raytheon (RTN)

Simon (SPG) Resorts to Portfolio Revamp Amid Dull Market

Anthem's (ANTM) Growing Investment Income Aids Top Line

Featured Reports

Strong Wireless Spectrum Portfolio Aids America Movil (AMX)

The Zacks analyst is bullish on America Movil's efforts to strengthen its spectrum portfolio.

Applied Industrial (AIT) to Grow on Robust Fluid Power Trade

The Zacks analyst believes sturdy fluid power business, elevated upstream oil & gas demand, and greater cost discipline will boost Applied Industrial's near-term results.

Smucker (SJM) Relies on Cost Savings

Per Zacks analyst, negative currency, lower coffee volumes and weak pet food sales remains a concern.

Higher Premiums Aid Travelers' (TRV) Earnings, Cat Loss Ails

Per the Zacks analyst, increasing premiums will continue to boost Travelers' earnings, resulting in overall growth.

Mettler-Toledo (MTD) Benefits from Blue Ocean Program

Per the Zacks analyst, focus on operational excellence programs such as Blue Ocean, Stern Drive and Spinnaker will continue to enhance Mettler-Toledo's supply chain and manufacturing efficiencies.

Cracker Barrel (CBRL) Sales Efforts Offset Industry Woes

Though challenges facing the restaurant and retail industry are a concern, Cracker Barrel's focus on menu innovation, seasonal offers and marketing efforts bode well for sales, per the Zacks analyst.

Rising Rates, Loan Growth Support KeyCorp's (KEY) Revenues

Per the Zacks analyst, strong loan and deposit growth, higher interest rates, improving economy, potential lesser regulations and inorganic expansion strategy should support KeyCorp's revenues.

New Upgrades

Public Service Enterprise (PEG) Grows on Steady Financials

The Zacks analyst believes that Public Service Enterprise's stable liquidity and cash flows provide substantial financial flexibility and a cushion in the present business environment.

Capacity Discipline, Debt-Reduction Efforts Aid GOL (GOL)

The Zacks analyst is impressed by the company's efforts to reduce debt levels. Its focus on capacity discipline is expected to result in improvement in yields, going forward.

Strong Complete Vehicle Assembly Segment Drives Magna (MGA)

Per the Zacks analyst, the launch of the BMW 5-Series at the assembly facility in Graz, Austria, is boosting the performance of the Complete Vehicle Assembly Segment. This, in turn, is aiding Magna.

New Downgrades

Adobe (ADBE) Hurt by Softness in the Core Computing Market

The Zacks analyst believes that softness in the core computing market due to growing popularity of tablets is weighing on Adobe's bottom line.

Martin Marietta (MLM) Hit by Adverse Weather Conditions

The Zacks analyst stresses that abnormally wet weather conditions in many markets are jeopardizing Martin Marietta's shipments, production and profitability.

Keryx's (KERX) Overdependence on Sole Drug Auryxia a Concern

Per the Zacks analyst, Keryx is heavily dependent on Auryxia for growth. An interruption in the supply of Auryxia is a cause for concern.

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The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
 
Simon Property Group, Inc. (SPG) : Free Stock Analysis Report
 
Raytheon Company (RTN) : Free Stock Analysis Report
 
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
 
Anthem, Inc. (ANTM) : Free Stock Analysis Report
 
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
 
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