American Express – Top Research Reports for Alibaba, Danaher & United Parcel Service
Monday, December 28, 2020
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 Alibaba Group Holding Ltd. ((BA)(BA)), Danaher Corp. (DHR) and United Parcel Service, Inc. (UPS). 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 >>>
Alibaba shares have underperformed the Zacks Internet – Commerce industry in the past one-year period (+4.2% vs. +56.8%). The Zacks analyst believes that COVID-19 related economic uncertainties and macro headwinds in China are major concerns for the company. In addition, rising competition from e-commerce players poses a risk.
However, the company continues to do well in core commerce and strong cloud business. Its New Retail strategy is also gaining momentum. This is aiding growth in Tmall Import, Hema fresh food grocery business and Intime Department Stores. However, higher costs associated with new initiatives remain a major concern.
(You can read the full research report on Alibaba here >>>)
Danaher shares have outperformed the Zacks Diversified Operations industry in the year-to-date period (+44.3% vs. +12.3%). The Zacks analyst believes that, in the quarters ahead, the company is poised to benefit from Danaher Business System (“DBS”), policy of rewarding shareholders through dividend payments, investment in product innovation and inorganic activities (acquisitions and divestments).
For fourth-quarter 2020, it anticipates core revenues to grow in low-double digits. Growth opportunities within the Life Sciences and Diagnostics segments will be beneficial for top-line performance.
(You can read the full research report on Danaher here >>>)
Shares of United Parcel Service have increased +47.9% over the past year against the Zacks Transportation – Air Freight and Cargo industry’s gain of +67.1%. The Zacks analyst believes that UPS is benefiting from a significant increase in home deliveries amid the prevalent coronavirus pandemic.
Notably, the need for door-to-door delivery of essentials during this crisis is rising. Owing to the surge in residential delivery volumes, UPS performed impressively in each of the three quarters of 2020. With the pandemic not subsiding, e-commerce demand is likely to continue soaring in the near term.
Moreover, we are encouraged by UPS’ solid free cash flow. Focus on aiding the distribution efforts of the coronavirus vaccine when it becomes commercially available also bodes well. However, the third-quarter decline in adjusted operating profit at the U.S. Domestic Package unit is concerning.
(You can read the full research report on United Parcel Service here >>>)
Other noteworthy reports we are featuring today include American Express Company (AXP) and Marriott International, Inc. (MAR).
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Today’s Must Read
Segmental Strength and Inorganic Actions to Aid Danaher (DHR)
UPS Gains Traction From E-commerce & Robust Free Cash Flow
Teva’s (TEVA) New Drugs to Drive Growth Amid Litigation Woes
The Zacks analyst says that Teva’s newest drugs Austedo and Ajovy could emerge as significant drivers of long-term sales. The opioid litigation and price-fixing investigations are overhangs on stock
Transco Pipeline System Aids Williams (WMB) Amid Debt Woes
While Williams’ expansion projects for its core Transco system of pipelines should buoy its revenues and cash flows, the Zacks analyst is worried over the high long-term debt load of $22 billion.
Tower Acquisitions Aid American Tower (AMT) Amid Churn Concerns
Per the Zacks analyst, portfolio expansion through tower buyouts enables American Tower to leverage on favorable trends in mobile-data usage.
Decline in Expenses to Aid American Express‘ (AXP) Margins
Per the Zacks analyst, halt in advertising and slowdown in product launches will lower marketing costs and drive margins.
Marriott (MAR) Banks on Expansion Initiatives, RevPAR Dismal
Per the Zacks analyst, Marriott continues to focus on acquisitions in order to expand its footprint globally. However, dismal revenue per available room (RevPAR) and occupancy rate remains a concern.
Solid Prospects in Proton Therapy Segment Drives Varian (VAR)
Varian has been gaining from strength in its Proton Therapy segment. The Zacks analyst is however concerned about fall in Oncology gross orders.
Improving Retention Rate, Pay-TV Resizing Aids DISH (DISH)
Per the Zacks analyst, DISH’s excellent customer service is improving retention. Also focus on acquiring and retaining subscribers that are profitable over the long term, is paying off.
ArcelorMittal USA Buy, HBI Plant Aid Cleveland-Cliffs (CLF)
Per the Zacks analyst, Cleveland-Cliffs will benefit from significant synergies of the ArcelorMittal USA acquisition. The hot briquetted iron (HBI) plant will also create new demand for the company.
Acquisitions & Product Mix to Buoy CNH Industrial (CNHI)
CNH Industrial’s buyout of Potenza Technology is expected to boost its e-mobility prospects. Also, upgraded product offerings are likely to aid the firm’s bottom line in future, per the Zacks analyst.
Children’s Place (PLCE) Digital Endeavors to Lift Top Line
Per the Zacks analyst, Children’s Place efforts to boost omni-channel capabilities like shipping, store pickups and other website and app features are likely to keep driving the top-line.
Decreased Air Travel Continues to Impact Raytheon (RTX)
Per the Zacks analyst, decreased commercial air travel due to the pandemic is affecting Raytheon’s Collins Aerospace and Pratt & Whitney businesses. Also rising raw material cost is hurting the stock.
Lyft (LYFT) Hurt by Coronavirus-Led Ride Volume Weakness
With the coronavirus confining people to their homes, the Zacks analyst is worried about the significant decline in Lyft’s operations due to low ride volumes.
COVID-19 Hurts Puma Biotech’s (PBYI) Nerlynx Sales
Several studies on Puma Biotech’s (PBYI) drug Nerlynx for different cancer indications are currently underway. The Zacks analyst says that Nerlynx sales were hurt by the COVID-19 pandemic in 2020.
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United Parcel Service, Inc. (UPS): Free Stock Analysis Report
Marriott International, Inc. (MAR): Free Stock Analysis Report
Danaher Corporation (DHR): Free Stock Analysis Report
Alibaba Group Holding Limited ((BA)(BA)): Free Stock Analysis Report
American Express Company (AXP): Free Stock Analysis Report
American Tower Corporation (AMT): Free Stock Analysis Report
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Tag: American Express