Friday, August 26, 2016

Today's must-read reports are for Barclays (BCS), Medtronic (MDT) and Procter & Gamble (PG).

Shares of Barclays have not been having a good time of late. Barclays’ second-quarter 2016 net income declined owing to lower trading and investment banking income, a rise in credit impairment charges as well as sale of several non-core operations. The company’s profitability is being affected by muted revenue growth and a stringent regulatory landscape.

But the analyst likes the company’s sustained progress in streamlining operations and lowering expenses, which will lead to enhanced profitability over time. (You can read the full research report on Barclays here.)

Medtronic’s shares have gained more than 11% year-to-date. Medtronic’s fiscal first-quarter earnings per share edged past estimates while revenues came in fairly close to expectations. The analyst likes Medtronic’s mega $1.1 billion acquisition of Heartware International, which is expected to significantly boost its Cardiac Rhythm & Heart Failure business.

Meanwhile, post the Covidien acquisition, the consolidated company has successfully demonstrated strong segmental performances reflecting successful integration and achievement of synergy targets. (You can read the full research report on Medtronic here.)

Procter & Gamble’s shares have increased more than 10% year-to-date. P&G beat expectations for both earnings and sales in the fourth quarter of fiscal 2016. However, operating profits were weak in the quarter due to higher marketing investments. P&G has been struggling to improve sales. But the analyst likes P&G’s productivity improvements and aggressive cost-saving efforts, which have consistently improved margins (You can read the full research report on Procter & Gamble here.)

Other noteworthy reports we are featuring today include Berkshire Hathaway (BRK.B), Dollar Tree (DLTR) and AT&T (T).

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You can find all of today's stock research reports here.

Sheraz Mian

Director of Research

Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview. He also provides weekly commentary to Zacks Premium subscribers and manages the Zacks Focus List and Top 10 portfolios. If you want an email notification each time Sheraz publishes a new article, please click here.