Top Research Reports for HSBC, UPS & General Motors

Friday, October 6, 2017

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 HSBC (HSBC), United Parcel Service (UPS) and General Motors (GM). 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 >>>

Shares of Buy-rated HSBC on NYSE have outperformed the Zacks Foreign Banks industry in the last six months, gaining +22.4% vs. +12.8%. Continued success of its cost saving efforts should improve the bank’s operating efficiency and support profitability.

While dismal European economic growth and weak loan demand are expected to lead to muted revenue growth in the near-term, the company will likely benefit from its extensive global network and a solid asset growth.

The announcement of $2 billion share repurchase plan reflects its strong capital position and boosts investors’ confidence in the stock. Further, the bank aims to identify and remove “low-return” RWAs going forward as well.

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

Buy-rated United Parcel Service's shares have outperformed the Zacks Air Freight And Cargo industry as well as rival FedEx over the last three months. While the stock has gained +7.1%, the industry has advanced +5.3%. Shares of FedEx have gained only +1.5% in the period.

UPS will be leaving no stone unturned to perform well this upcoming holiday season. It expects to benefit from the growth in ecommerce. Meanwhile, growth in export shipments continues to boost UPS.

Additionally, the company’s efforts to reward its shareholders seem to be encouraging. Earlier this year, it hiked quarterly dividend by 6.4%.  Furthermore, UPS' expansion efforts raise investors’ optimism. However, adverse foreign currency movements and high costs might hurt results in the third quarter of 2017. Results are scheduled to be revealed on Oct 26.

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

Shares of General Motors have outperformed the Zacks Domestic Automotive industry over the last six months, increasing +30.1% vs. +16.5%. The company is set to gain from its strong crossover and truck segment. It aims to focus more on the development of electric vehicles and plans to roll out 20 electric or hydrogen fuel cell vehicles by 2023. It is also emphasizing to strengthen its brands, increasing retail sales and maintaining operating discipline.

General Motor believes that by 2030 half of its global sales growth will be from emerging markets, encouraging it to make large investments and launch new products in those regions. However, frequent vehicle recalls, high inventory level of passenger cars and currency fluctuations are few concerns the company has been facing. Also, Zacks Consensus Estimate for General Motors’ quarterly earnings has been going down of late.

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

Other noteworthy reports we are featuring today include Netflix (NFLX), Sanofi (SNY) and Monsanto (MON).

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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>>>

Today's Must Read

Streamlining, Cost Saving Initiatives Supports HSBC (HSBC)

UPS Buoyed by ecommerce Growth & Global Expansion Efforts

Crossover Sales Lifts General Motors (GM), Weak Pricing Hits

Featured Reports

Stable Financials Aid PG&E Corp. (PCG), Higher Fines Ail

Per the Zacks analyst, PG&E Corp.'s strong cash flow generation capability allows it to pay regular dividends. However, incurring higher fines will affect its financial performance.

Concho's (CXO) Permian Exposure Masked by High Service Cost

While the covering analyst likes Concho Resources' large acreage position in the prolific Permian Basin, service cost inflation limits upside.

Dollar General's (DG) Better Price, Comps Run to Aid Sales

Dollar General boasts impressive comparable sales run. Per the Zacks analyst, the company's better price management and operational initiatives should drive sales.

Strong Balance Sheet Aids Allstate (ALL) Climate Woes Hurt

The Zacks analyst views favorably the company's strong balance sheet which enables capital deployment for business growth; however, weather-related losses have led to high claims, hurting margins.

New Launch Aids Baxter (BAX) Amid Cyclophosphamide Woes

The Zacks analyst is bullish on Baxter's launch of DeviceVue, a comprehensive asset tracking solution available exclusively to hospitals. Lower cyclophosphamide sales might mar Baxter's bottom line.

Monsanto (MON) to Grow on Bayer's Buyout Deal & Innovations

The Zacks Analyst anticipates Bayer's $66-billion buyout deal's success and launch of state-of-the-art crop-yield enhancing solutions to boost Monsanto's near-term results.

O'Reilly (ORLY) Rides on Store Openings, SG&A Expenses Drag

Per the Zacks analyst, O'Reilly strategy of opening of new stores in the existing & new market is aiding its growth.

New Upgrades

Netflix (NFLX) Banks on Price Increase, Content Strength

Per the Zacks Analyst, the recent increase in monthly subscription price for the U.S. consumers will drive Netflix's top-line. The strong content portfolio will continue to boost subscriber base.

Paychex (PAYX) Banks on Product Development & HROI Buyout

Per the Zacks analyst, Paychex's sustained focus on investing in product development and acquisitions, such as that of HROI, will continue to drive top- and bottom-line performance over the long run.

Annaly's (NLY) High-Quality MBS Investments to Propel Growth

Per the Zacks Analyst, Annaly's investment in Agency mortgage backed securities (MBS) will enable it to diversify its investment portfolio and accelarate growth.

New Downgrades

Sanofi's (SNY) Diabetes Unit Sales to Decline Faster in 2H

Sanofi's Diabetes franchise is under significant pressure due to a tough U.S. payer environment, per the Zacks analyst. U.S. diabetes sales are expected to decline faster in the second half.

Weak RAN Markets, Restructuring to Hurt Ericsson (ERIC)

Per the Zacks analyst, weak demand in radio access networks (RAN) market, huge restructuring costs and low investments in mobile broadband will continue to drag Ericsson's sales and operating income.

Wendy's (WEN) Challenged by Higher Costs, Industry Woes

Per the Zacks analyst, higher labor and commodity costs along with higher capital spending will continue to weigh on Wendy's margins. A soft industry backdrop in the United States is also a concern.

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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
 
Sanofi (SNY) : Free Stock Analysis Report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
Monsanto Company (MON) : Free Stock Analysis Report
 
HSBC Holdings PLC (HSBC) : Free Stock Analysis Report
 
General Motors Company (GM) : Free Stock Analysis Report
 
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