Top Stock Reports for Wells Fargo, Coca-Cola & Disney

Tuesday, April 10, 2018

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 Wells Fargo (WFC), Coca-Cola (KO) and Disney (DIS). 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 >>>

Wells Fargo’s hares have underperformed the Zacks Major Banks industry over the last six months (-6.1% vs. +4.4%). With earnings estimate for the soon-to-be-reported quarter witnessing slight upward revision lately, the company possesses a decent earnings surprise history, beating the Zacks Consensus Estimate in two of the trailing four quarters.

Wells Fargo has been slapped with new sanctions including a cap on the assets position by the Federal Reserve. Further, the review process of the bank’s Wealth and Investment Management segment is also in preliminary stages.

Moreover, Moody’s has downgraded the rating outlook of the bank to negative, though S&P has kept unchanged at stable. Though consistent growth in loans and deposits, lower tax rate and expansions will likely support its growth profile, the current crisis related to the revelation of illegally opening millions of illegal accounts in 2016 at the company will take some time to alleviate.

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

Shares of Coca-Cola have outperformed the Zacks Soft Drinks Beverages industry in the last year, (+2.7% vs. +2.6%). Coca-Cola enjoys solid long-term fundamentals given its worldwide reach, strong brand power, higher international presence and impressive cash position.

Although top line needs to show sustained improvement, the Zacks analyst is encouraged by the company’s strategic efforts in making its portfolio as a total beverage company with improved marketing and innovation, focus on driving revenues by improved price/mix, digital focus, and productivity initiatives toward driving margins.

Moreover, Coca-Cola’s transformative global re-franchising initiatives will lead to better margins and returns as well as superior growth, despite hurting sales/profits in the near term. Also, Coca-Cola’s new revenue platforms should drive growth over the long term. However, challenging global market conditions, weak CSD volumes and currency and structural headwinds remain challenges.

(You can read the full research report on Coca-Cola here >>>).

Buy-ranked Disney’s shares have increased +1.2% over the last six months vs. the Zacks Media Conglomerates industry’s -0.9% 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.

The deal provides a bit of fresh air to Disney, which for quite some time now has been jostling in the fast changing media landscape. The Zacks analyst thinks addition of Fox's rich library of movies and TV series would greatly enhance Disney’s prospects in the streaming service.

The company's long list of franchises continues to reap hefty box-office revenues. Moreover, the upcoming launch of its multi-sport streaming service, ESPN Plus, is a tailwind. Estimates have been stable lately ahead of the company’s Q2 earnings release. The company has mixed record of earnings surprises in recent quarters.

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

Other noteworthy reports we are featuring today include Fiserv (FISV), Agnico Eagle (AEM) 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

Loan Growth Supports Wells Fargo (WFC), Legal Issues Linger

Coca-Cola (KO) to Gain From $3.8 Billion Cost Saving Plan

Disney (DIS) Rides on Franchise Strength & Live Streaming

Featured Reports

Fierce Rivalry Hurts Fiserv's (FISV) Client Building Efforts

The Zacks analyst believes that rising competition from large computer hardware manufacturers and processing centers weighs on Fiserv's clientele expansion efforts.

Gartner (IT) Benefits From High-Quality Analysis Offering

The Zacks analyst believes that Gartner's high-quality, timely, thought-provoking and comprehensive analysis offering helps it to counter growing competition.

Sprint's (S) Network Modernization Marred by High Cash Burn

Per the Zacks analyst, Sprint's network modernization and integration efforts with lucrative promotional offers for subscribers will likely be offset by high cash burn rate and soaring debt levels.

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.

New Programs & Marketing Drive Aids American Public (APEI)

Per the Zacks analyst, introduction of new certificate and degree programs along with strong digital marketing campaigns are likely to boost enrollment for American Public Education.

CNA Financial (CNA) Poised to Grow on Solid Underwriting

The Zacks analyst believes CNA Financial is well positioned to grow on long term given underwriting profitability and robust capital position.

Veeva Systems (VEEV) Rides on Cloud-Based Vault Platform

The Zacks analyst likes Veeva's cloud-based Vault platform, which garnered several contracts around the world.

New Upgrades

Booming Electronic Payments Market Boosts Verifone (PAY)

The Zacks analyst likes VeriFone's dominant position in the electronic payment systems and services market. Robust product portfolio is a positive. Growth prospects from buyouts raise optimism.

Production Expansion Actions, Auto Demand Drive Nucor (NUE)

Per the Zacks analyst, Nucor is well placed to gain from its efforts to expand production capacity as well as actions to expand its foothold in the automotive market driven by strong demand.

User Engagement, Cost-Cutting Initiatives Aid Twitter (TWTR)

Per the Zacks analyst, Twitter's improving platform features are driving user growth rate and engagement levels. Moreover, aggressive cost-cutting is boosting profitability.

New Downgrades

Solar Import Tariff to Weigh on SunPower (SPWR)

Per the Zacks analyst, the recent tariff of 30% that Trump administration has imposed on import of solar modules may drag down SunPower's profit margin.

QEP Resources (QEP) Hurt by High Service Cost, Gas Price

The Zacks analyst is concerned about the recent drilling and fracking price escalation in the Permian Basin that has driven up QEP Resources' service costs, as well as low natural gas prices.

Lower Production & Higher Costs to Hurt Agnico Eagle (AEM)

According to the Zacks analyst, Agnico Eagle's margins are likely to be hurt in 2018 owing to higher unit costs, mainly resulting from lower expected gold production compared to last year.

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Wells Fargo & Company (WFC) : Free Stock Analysis Report
 
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
 
Fiserv, Inc. (FISV) : Free Stock Analysis Report
 
The Walt Disney Company (DIS) : Free Stock Analysis Report
 
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
 
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
 
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