Tuesday, November 22 2016
Today's Research Daily features new research reports on 16 major stocks, including Visa (V), Starbucks (NASDAQ:SBUX) (SBUX) and Union Pacific (NYSE:UNP) (UNP).
Visa shares have gained more than 5% year-to-date, modestly below MasterCard's (MA) performance, reflecting concerns about high client incentives, the stronger U.S. dollar, and global economic uncertainty. These issues notwithstanding, the Zacks analyst likes Visa’s strategic acquisitions and alliances, technology upgrades and effective marketing efforts. The company has reaffirmed that the acquisition of Visa Europe will be accretive in 2017. Additionally, the latest dividend hike reflects Visa’s efforts to enhance shareholders’ value. However, a (You can read the full research report on Visa here>>)
Starbucks shares have struggled this year on concerns about the company's growth outlook. The stock has partly recovered lately, but still lags the broader market. In the updated research report issued today, the Zacks analyst discusses the pros & cons of investing in the stock, with the analyst pointing to the company's solid execution of several initiatives in the U.S. and highlights its potential to be an international powerhouse in CPG and retail. Best-in-class loyalty programs and digital offerings are expected to drive profits in fiscal 2017 and beyond. On the flip side, economic, geopolitical and consumer headwinds throughout the EMEA region had a negative impact on Starbucks’ results. Again, macro-related weakness and tough comps in Japan raise concerns. (You can read the full research report on Starbucks here>>)
Union Pacific shares handily outperformed the peer transportation group as well as the broader market (the stock is up an impressive 29% year-to-date). Driving the stock's outperformance despite well-known headwinds facing the transportation group as a whole is Union Pacific's track record of operating efficiencies, strong cash flows and shareholder-friendly policies. The company's recent announcement of a dividend hike and new stock buyback program is further cementing that reputation. Growing optimism about the economy on the back of hopes of market friendly policies from the new administration is helping the stock as well as the broader transportation group. But the company's near-term operating outlook still reflects headwinds from the coal space and decreasing volumes from the factory sector. (You can read the full research report on Union Pacific here>>)
Other noteworthy reports we are featuring today include FedEx (NYSE:FDX), Wal-Mart (NYSE:WMT) and Verizon (VZ).
Free Access: All Zacks Research Reports
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Sheraz Mian
Director of Research
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Today's Must Read
Featured Reports
Activision (ATVI) Q3 Earnings Top, Revenues Miss; View Up
Activision's strong Q3 results were driven by digital revenues and strength in its franchises like COD and Overwatch. The Zacks analyst feels that these factors will help to sustain the momentum.
Adobe (ADBE) Likely to be Hurt by Data Breach Settlement
The covering analyst believes that the $1 million data breach settlement will have a negative impact on Adobe's brand reputation.
XO-Deal to Boost Verizon's (VZ) Fiber Optic Networks
The Zacks analyst believes that the fiber network of XO Comm. should expand Verizon's metro, on-net fiber and millimeter wave wireless spectrum holdings in major markets.
Gap (GPS) Q3 Earnings in Line, Plans to Shut More Stores
Gap plans to close more stores as it expects weak demand this holiday season.
Marathon Oil (NYSE:MRO) Posts Narrower-than-Expected Q3 Loss
The covering analyst believes that Marathon Oil's better-than-expected Q3 results reflects its competitive cost structure and strong execution.
Consolidated Edison (NYSE:ED) Beats on Q3 Earnings, Revenues Down
The Zacks analyst believes that Consolidated Edison's systematic capital investment plan for infrastructure development and the expansion of renewable assets will drive its future performance.
Hanesbrands' (HBI) Innovate-to Elevate Strategy Bodes Well
The covering analyst thinks Hanesbrands' Innovate-to-Elevate strategy focusing on value-added and high-margin items helps increase profit.
New Upgrades
TiVo (NASDAQ:TIVO) to Gain from New Deals and Merger with Rovi
The Zacks analyst thinks that the higher number of distribution deals and its merger with Rovi will support TiVo's expansion plans and strengthen its customer base, in turn boosting revenues.
FedEx (FDX) Upgraded on Bullish Holiday Season Expectations
The covering analyst expects FedEx to perform impressively in the holiday season this year driven by rapid e-commerce growth. The company's strong product portfolio is also encouraging.
General Mills' (NYSE:GIS) Restructuring Plans to Spur Growth
The Zacks analyst believes consumer-focused innovation, marketing initiatives and robust restructuring savings are making up for the sluggish sales growth at General Mills.
New Downgrades
Wal-Mart (WMT) Profits Down on Currency Woes & High Expenses
The Zacks analyst thinks profits declined in Q3 due to unfavorable currency and higher investments in wages. Although revenue gained backed by growth at Wal-Mart U.S, it missed the consensus mark.
Genworth (GNW) Suffers Loss in Q3; Revenues Decline Y/Y
Genworth's third-quarter 2016 underperformance resulted from previously declared charges related to the review of Long Term Care claim reserves and taxes. Also, revenues declined year over year.
Andersons (ANDE) Riddled By Segmental Concerns
The Zacks analyst believes oversupply and falling prices will hurt Andersons' Plant Nutrient segment while weak railcar demand and lower utilization levels remain hindrances for the Rail Group.
WAL-MART STORES (WMT): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
UNION PAC CORP (UNP): Free Stock Analysis Report
STARBUCKS CORP (SBUX): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
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