The Zacks Analyst Blog Highlights Toyota Motor Corporation, Fomento Economico Mexicano, United Parcel Service, Caterpillar, ConocoPhillips and Union Pacific
For Immediate Release
Chicago, IL – June 20, 2023 – 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: Toyota Motor Corporation TM, Fomento Economico Mexicano FMX, United Parcel Service, Inc. UPS, Caterpillar Inc. CAT, ConocoPhillips COP and Union Pacific Corporation UNP.
Here are highlights from Friday’s Analyst Blog:
Top Stock Reports for Toyota Motor, Fomento Economico Mexicano & United Parcel Service
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 Toyota Motor Corporation, Fomento Económico Mexicano and United Parcel Service, Inc. 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 >>>
Toyota Motor shares have outperformed the Zacks Automotive - Foreign industry over the past year (+7.4% vs. -10.1%) reflecting a still-favorable automobile demand environment and Toyota's robust product line-up, including in the EV space. To capitalize on the accelerated global shift to green cars, the auto giant is deepening focus on manufacturing electric and fuel-cell vehicles, which will bolster the company’s product competitiveness.
Toyota Motor’s commitment to return capital to shareholders and upbeat fiscal 2024 view spark confidence. However, commodity cost inflation is expected to weigh on gross margins. Supply-chain disruptions and tough labor market will play spoilsports.
Unfavorable foreign currency translations and high R&D expenses are also likely to limit profits. Also, elevated leverage of the firm may restrict its financial flexibility to tap onto growth opportunities. Thus, investors are advised to wait for a better entry point.
(You can read the full research report on Toyota Motor here >>>)
Shares of Fomento Económico Mexicano have outperformed the Zacks Beverages - Soft drinks industry over the past year (+64.5% vs. +21.0%). The company’s top and bottom-line improved year over year on strength across segments and improved operating income. Revenues improved on gains across all business units resulting from effective growth strategies and robust demand across markets.
Fomento Económico Mexicano’s digital initiatives and business expansion endeavors have also been aiding results. Its efforts to expand in the U.S. specialized distribution segment bodes well. The company displays strong financial flexibility.
However, FEMSA continued to witness operating margin decline due to contraction at Proximity, Health and Envoy Solutions divisions. Supply-chain disruptions and higher raw material costs hurt results.
(You can read the full research report on Formento Economico Mexicano here >>>)
United Parcel Service shares have modestly outperformed the Zacks Transportation - Air Freight and Cargo industry over the past year (+9.0% vs. +8.5%). The company’s is looking to drive growth in this uncertain scenario by improving efficiencies. Efforts to reward its shareholders through dividends and buybacks bode well for UPS.
United Parcel Service 's strong free cash flow generating ability pleases us and supports its shareholder-friendly activities. UPS anticipates making dividend payments of $5.4 billion apart from buying back shares worth $3 billion in 2023.
However, the new forecast is at the low end of the previous outlook and much lower than 2022's actual figure. The gloomy forecast is mainly due to weak consumer sales. Notably, average daily volume declined 5.4% in first-quarter 2023 at the U.S. Domestic package segment. The same declined 6.2% at the International Package division.
(You can read the full research report on United Parcel Service here >>>)
Other noteworthy reports we are featuring today include Caterpillar Inc., ConocoPhillips and Union Pacific Corporation.
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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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Caterpillar Inc. (CAT) : Free Stock Analysis Report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
Union Pacific Corporation (UNP) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
Fomento Economico Mexicano S.A.B. de C.V. (FMX) : Free Stock Analysis Report
