U.S. Markets close in 1 hr 25 mins

Top Research Reports for United Parcel Service, Morgan Stanley & CME Group

Mark Vickery
Top Research Reports for United Parcel Service, Morgan Stanley & CME Group

Tuesday, February 19, 2019

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 United Parcel Service (UPS), Morgan Stanley (MS) and CME Group (CME). 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 >>>

United Parcel Service’s shares have outperformed the Zacks Transportation - Air Freight and Cargo industry over the past year, gaining +5.9% vs. -7.5%. The Zacks analyst likes UPS' efforts to reward shareholders through dividends and buybacks. In 2018, the company rewarded shareholders to the tune of $4.2 billion through the aforementioned shareholder-friendly measures.

Continuing its pro-investor approach, in February 2019, UPS increased its quarterly dividend by 5.5% to 96 cents per share. Robust free cash flow generation by UPS supports the possibility of a dividend hike going forward as well. E-commerce growth is an added positive at UPS and it aided the company's fourth-quarter 2018 results similar to the past few quarters.

The company anticipates cross-border e-commerce volume to grow by 28% over the next three years. However, the company's high capital expenditures are limiting bottom-line growth. Trade-war related tensions and high debts pose further challenges to the company.

(You can read the full research report on United Parcel Service here >>>).

Shares of Morgan Stanley have lost -2.5% over the past three months, underperforming the Zacks Investment Banking industry, which has gained +2.1% over the same period. The company possesses an impressive earnings surprise history, having beaten expectations in three of the trailing four quarters.

The Zacks analyst thinks its efforts to strengthen wealth management business (organically and through acquisitions), focus on corporate lending, steady loan growth, higher interest rates and normalized levels of trading activities will likely aid revenues. Also, the company’s steady capital deployment activities reflect a strong balance sheet position.

However, a slowdown in debt originations will hinder underwriting fee income growth. Further, mounting operating expenses is a major near-term concern for the company.

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

CME Group’s shares have underperformed the Zacks Securities and Exchanges industry over the past year, losing -8.7% versus -5.7%. CME Group’s fourth-quarter earnings per share beat estimates and improved year over year. The quarter witnessed increased volatility and higher customer demand for diverse risk management products, which drove strong trading volumes of more than 20 million contracts per day.

The Zacks analyst thinks the company remains well-poised for growth on a strong market position with varied derivative product lines. Efforts to expand and cross sell its core exchange-traded business via new product initiatives and a global reach are positives. It intends to focus more on over-the-counter clearing services on interest rate swaps as well as foreign exchange.

Also, the buyout of Nex Group will help CME Group generate $200 million in run-rate cost synergies, annually, by 2021-end. Also, the company targets 1x debt-to-EBITDA by 2020 end. However, escalating expenses are putting pressure on margins.

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

Other noteworthy reports we are featuring today include Fiserv (FISV), Williams Companies (WMB) and Enbridge (ENB).

Is Your Investment Advisor Fumbling Your Financial Future?

See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”

Click to get it free >>

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>>>

 

Friday, February 19, 2019

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 United Parcel Service (UPS), Morgan Stanley (MS) and CME Group (CME). 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 >>>

United Parcel Service’s shares have outperformed the Zacks Transportation - Air Freight and Cargo industry over the past year, gaining +5.9% vs. -7.5%. The Zacks analyst likes UPS' efforts to reward shareholders through dividends and buybacks. In 2018, the company rewarded shareholders to the tune of $4.2 billion through the aforementioned shareholder-friendly measures. Continuing its pro-investor approach, in February 2019, UPS increased its quarterly dividend by 5.5% to 96 cents per share. Robust free cash flow generation by UPS supports the possibility of a dividend hike going forward as well. E-commerce growth is an added positive at UPS and it aided the company's fourth-quarter 2018 results similar to the past few quarters. The company anticipates cross-border e-commerce volume to grow by 28% over the next three years. However, the company's high capital expenditures are limiting bottom-line growth. Trade-war related tensions and high debts pose further challenges to the company.

(You can read the full research report on United Parcel Service here >>>

Today's Must Read

Dividends & Buybacks Buoy UPS Amid Cost Woes


Acquisitions to Support Morgan Stanley (MS), Expenses a Woe


Growing Volumes Aid CME Group (CME), Rising Expenses Worrying


Featured Reports

Enbridge (ENB) to Gain From C$16B Midstream Project Backlog

The Zacks analyst thinks that Enbridge will continue to earn stable fee-based revenues from its C$16-billion backlog of midstream energy projects.

Williams (WMB) Buoyed by Brazos Midstream JV Amid High Debt

While the newly Brazos Midstream JV will enhance Williams' exposure to the lucrative Permian Basin, the Zacks analyst is worried over the considerable long-term debt load.

Fiserv (FISV) Rides on Strategic Business Moves, Debt High

The Zacks analyst is impressed with Fiserv's strategy to widen its client base and enhance its product portfolio with the help of buyouts and partnerships.

Bakken Play Aids Marathon (MRO) Amid International Weakness

The Zacks analyst is worried about turnaround activities in the Equatorial Guinea region.

CDW Benefits From Robust Growth in Customer End Markets

Per the Zacks analyst, CDW's broad-based product and solutions portfolio is boosting growth across its customer markets, which include corporate, small business, government, education and healthcare.

Inorganic Growth, Rising Top-line Aid WellCare Health (WCG)

Per the Zacks analyst, a number of buyouts such as Meridian Health Plans of Michigan and Illinois and MeridianRx have led to its growth, which in turn, has boosted its revenues.

Segmental Momentum, Cost Cuts Aid Avery Dennison (AVY)

Per the Zacks analyst, productivity initiatives, pricing action and solid segment performance aided by growth in emerging markets and acquisitions bode well for Avery Dennison.

New Upgrades

Celldex's (CLDX) Immuno-Oncology Pipeline Progress Promising

Per the Zacks analyst, Celldex has several promising immuno-oncology candidates which are in early to mid-stage development for several cancer indications including the lucrative lung cancer.

Improving Leasing, Occupier Outsourcing to Drive CBRE (CBRE)

Per the Zacks analyst, CBRE Group will gain from improving occupier outsourcing business, leasing and strategic acquisitions. Also, digital and technology investments will give it a comparative edge.

Fresenius Medical (FMS) Gains Ground on NxStage Acquisition

Fresenius Medical's acquisition of NxStage Medical currently favors the company. The Zacks Analyst is optimistic about the company's Cura buyout in past.

New Downgrades

Competition in DNA Sequencing Market Ails Pacific (PACB)

The Zacks analyst believes cutthroat competition in the DNA sequencing market is a headwind for Pacific Biosciences. Sluggishness in services and other revenue segments is a woe.

Dependence on Rubraca Weighs on Clovis Oncology (CLVS)

Per the Zacks analyst, although the company is progressing well with label expansion of Rubraca, sales are not improving even as competition rises. Dependence on sole drug is a concern.

Intercept's (ICPT) Dependence on Ocaliva Worrying

Per the Zacks analyst, while the uptake of Ocaliva is encouraging, Intercept's dependence on a single drug for growth is a concern as any negative news would adversely impact its growth prospects.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
 
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
 
Morgan Stanley (MS) : Free Stock Analysis Report
 
Fiserv, Inc. (FISV) : Free Stock Analysis Report
 
Enbridge Inc (ENB) : Free Stock Analysis Report
 
CME Group Inc. (CME) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research