Top Research Reports For December 2, 2016
Zacks Investment Research | Dec 02, 2016 02:31AM ET
Friday, December 2 2016
Today's Research Daily features new research reports on 16 major stocks, including United Parcel Service (NYSE:UPS) (UPS), Honeywell (HON) and Lowe’s (LOW).
United Parcel Service’s shares have marginally underperformed the transport air freight industry, gaining 21% year-to-date. However, the company expects the ongoing holiday season to be a highly successful one on the back of the growing demand for e-commerce. The analyst likes the fact that UPS remains focused on expanding across major destinations worldwide and continues to invest in improving operations to deliver the best service to customers.
The company's recent deal with Sealed Air Corporation (NYSE:SEE) to improve packaging efficiency and provide shipping solutions is another positive. However, the adverse impact of foreign exchange, intense competition, and macroeconomic risks raise concerns. (You can .)
Honeywell’s shares have outperformed the diversified operations industry gaining 9.8% in the year-to-date period. The analyst like the company’s continuing efforts on increasing its presence in high-growth regions. Additionally, it is building a robust pipeline of new products.
However, adverse foreign currency translations and volatility in commodity prices related to Brexit are likely to peg back its growth momentum slightly. It is highly dependent on its supply chain, and any snag in one of the links might have an adverse impact. Yet, the company has a positive earnings history in the trailing four quarters, while estimate have remained steady. (You can )
Shares of Lowe’s have moved lower over the year, underperforming the building products retail/wholesale industry. Further, management lowered its fiscal 2016 earnings view, thus triggering a downtrend in the Zacks Consensus Estimate. However, the analyst likes Lowe’s omni-channel endeavor, merchandising initiatives and strategic acquisitions bode well for this home improvement retailer.
A clear reflection of this was visible in third-quarter fiscal 2016 results, wherein both the top and bottom lines grew year-over-year. However, total sales growth projection of approximately 9% to 10% provides some respite to the investor sentiment. (You can .)
Other noteworthy reports we are featuring today include Kroger (NYSE:KR) (KR), MasterCard (MA) and General Mills (NYSE:GIS) (GIS).
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Today's Must Read/h6
Featured Reports/h6
The Zacks analyst thinks Donaldson's efforts to streamline operations continue to boost profitability.
The covering analyst thinks threats like currency woes, soft traffic and a volatile retail scenario led to a cautious fourth quarter outlook.
The Zacks analyst thinks that though the transition to cloud is a drag on the financials at present, it will aid its performance in the long run.
The covering analyst thinks digital & expansion moves will continue to support MasterCard's growth profile. However, escalating costs and litigation issues remain key concerns.
The Zacks analyst believes its consumer-focused innovation, restructuring initiatives, strong brand position should drive growt
The covering analyst believes that Phillips' diversified refining presence led the company to outperform the broader sector.
The Zacks analyst believes Aqua America is poised to gain from its strategic acquisitions and ongoing investment but adherence to stringent regulatory provisions could increase its operating costs.
The Zacks analyst thinks Donaldson's efforts to streamline operations continue to boost profitability.
The covering analyst thinks threats like currency woes, soft traffic and a volatile retail scenario led to a cautious fourth quarter outlook.
The Zacks analyst thinks that though the transition to cloud is a drag on the financials at present, it will aid its performance in the long run.
The covering analyst thinks digital & expansion moves will continue to support MasterCard's growth profile. However, escalating costs and litigation issues remain key concerns.
The Zacks analyst believes its consumer-focused innovation, restructuring initiatives, strong brand position should drive growt
The covering analyst believes that Phillips' diversified refining presence led the company to outperform the broader sector.
The Zacks analyst believes Aqua America is poised to gain from its strategic acquisitions and ongoing investment but adherence to stringent regulatory provisions could increase its operating costs.
New Upgrades/h6
The Zacks analyst believes that the company's sustained focus on new product launches, deal wins and acquisitions will continue to drive its top and bottom line results.
The covering analyst believes that Public Service Enterprise's steady capital investment plans focused on the development of its transmission and distribution systems will boost its performance.
The Zacks analyst believes that Citrix's strong product portfolio and impressive earnings history have led to it outperforming the broader industry on a year to date basis.
The Zacks analyst believes that the company's sustained focus on new product launches, deal wins and acquisitions will continue to drive its top and bottom line results.
The covering analyst believes that Public Service Enterprise's steady capital investment plans focused on the development of its transmission and distribution systems will boost its performance.
The Zacks analyst believes that Citrix's strong product portfolio and impressive earnings history have led to it outperforming the broader industry on a year to date basis.
New Downgrades/h6
The Zacks analyst thinks deflationary environment is hurting Kroger's performance that succumbed to a negative earnings surprise in the third quarter and narrowed its fiscal 2016 earnings projection.
The covering analyst notes that unfavorable currency translation, slowdown in the Chinese market and potential increase in fuel cost remain potent headwinds.
The Zacks analyst believes that despite Adobe's strong position in creative cloud market and continued innovation, lower end-market demand and exposure to Europe remain overhangs.
The Zacks analyst thinks deflationary environment is hurting Kroger's performance that succumbed to a negative earnings surprise in the third quarter and narrowed its fiscal 2016 earnings projection.
The covering analyst notes that unfavorable currency translation, slowdown in the Chinese market and potential increase in fuel cost remain potent headwinds.
The Zacks analyst believes that despite Adobe's strong position in creative cloud market and continued innovation, lower end-market demand and exposure to Europe remain overhangs.
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