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Research Daily

Friday, December 2 2016

Today's Research Daily features new research reports on 16 major stocks, including United Parcel Service (UPS), Honeywell (HON) and Lowe’s (LOW).

United Parcel Service’s shares have marginally underperformed the transport air freight industry, gaining 21% year-to-date. However, the company expects the ongoing holiday season to be a highly successful one on the back of the growing demand for e-commerce. The analyst likes the fact that UPS remains focused on expanding across major destinations worldwide and continues to invest in improving operations to deliver the best service to customers.

The company's recent deal with Sealed Air Corporation to improve packaging efficiency and provide shipping solutions is another positive. However, the adverse impact of foreign exchange, intense competition, and macroeconomic risks raise concerns. (You can read the full research report on United Parcel Service here.)

Honeywell’s shares have outperformed the diversified operations industry gaining 9.8% in the year-to-date period. The analyst like the company’s continuing efforts on increasing its presence in high-growth regions. Additionally, it is building a robust pipeline of new products.

However, adverse foreign currency translations and volatility in commodity prices related to Brexit are likely to peg back its growth momentum slightly. It is highly dependent on its supply chain, and any snag in one of the links might have an adverse impact. Yet, the company has a positive earnings history in the trailing four quarters, while estimate have remained steady. (You can read the full research report on Honeywell here.)

Shares of Lowe’s have moved lower over the year, underperforming the building products retail/wholesale industry. Further, management lowered its fiscal 2016 earnings view, thus triggering a downtrend in the Zacks Consensus Estimate. However, the analyst likes Lowe’s omni-channel endeavor, merchandising initiatives and strategic acquisitions bode well for this home improvement retailer.

A clear reflection of this was visible in third-quarter fiscal 2016 results, wherein both the top and bottom lines grew year-over-year. However, total sales growth projection of approximately 9% to 10% provides some respite to the investor sentiment. (You can read the full research report on Lowe’s here.)

Other noteworthy reports we are featuring today include Kroger (KR), MasterCard (MA) and General Mills (GIS).

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