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The Zacks Analyst Blog Highlights: Disney, United Parcel, U.S. Bancorp, Constellation and Tyson

Zacks Equity Research
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For Immediate Release

Chicago, IL –January 15, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Disney DIS, United Parcel Service UPS, U.S. Bancorp USB, Constellation Brands STZ and Tyson Foods TSN.

Here are highlights from Monday’s Analyst Blog:

Top Stock Reports for Disney, United Parcel Service and U.S. Bancorp

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 Disney, United Parcel Service and U.S. Bancorp. 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 >>>

Disney’s shares have increased +0.1% over the past year, outperforming the Zacks Media Conglomerates industry’s -1.2% decline in that same time period. The Zacks analyst thinks blockbuster performance of Disney movies at the box office is aiding Studio segment growth.

Moreover, the company’s top line is expected to benefit from the solid line-up of big budget movies slated to be released over the next 18 months. Solid content portfolio at ESPN+ as well as impressive Disney+ original content line-up, expected to release in 2019, is also expected to win subscribers rapidly. However, Disney’s ongoing investments in its technology platform are expected to keep margins under pressure.

Additionally, higher programming costs at ESPN remains a concern. Higher labor-related costs and softness experienced in tourism and consumer confidence in China are likely to impact Parks & Resorts segment in the near term.

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

Shares of United Parcel Service have outperformed the Zacks Transportation - Air Freight and Cargo industry over the past year, losing -27% vs. -30.9%. The Zacks analyst expects United Parcel Service's bottom line in the fourth quarter of 2018 to be hurt by high costs. Detailed results should be out on Jan 31.

UPS' high capital expenditures are pushing up costs. For 2018, capital expenditures are projected between $6.5 billion and $7 billion, representing an increase in excess of 100% from 2016 levels. With the company having Chinese exposure, trade disputes between United States and China also represent a headwind for UPS.

On the other hand, robust e-commerce growth is a major tailwind for the company and should aid the top line in the fourth-quarter. The company’s efforts to reward investors through share buybacks and dividend payouts are also impressive. Additionally, the current tax law is a boon for U.S. based transportation companies like UPS.

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

U.S. Bancorp’s shares have outperformed the Zacks Major Banks industry over the past six months, losing -7.5% vs -13.5%. The company possesses an impressive earnings surprise history, beating expectations in all the trailing four quarters. Earnings estimates have remained stable lately, ahead of the company's fourth quarter 2018 results.

The Zacks analyst thinks U.S. Bancorp's prospects will likely get support from its solid business model, core franchise, lower tax rate, rising interest rate and diverse revenue streams. Also, its organic growth remains solid and will likely benefit from the improving economic scenario.

U.S. Bancorp remains well poised to grow through acquisitions. However, escalating expenses due to its ongoing investments in technology and likely increase in legal expenses remain concerns.

(You can read the full research report on U.S. Bancorp here >>>).

Other noteworthy reports we are featuring today include Constellation Brands and Tyson Foods.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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