Monday, December 12 2016

Today's Research Daily features new research reports on 16 major stocks, including Costco (COST), Lockheed Martin (LMT) and EOG Resources (EOG).

Costco shares have underperformed the Zacks categorized Retail Discount &Variety sector year to date, losing 1.1% versus a gain of 8.8%. Costco commenced fiscal 2017 on a soft note, delivering a negative earnings surprise of 1.7% in the first quarter.

The analyst stresses that Costco continues to be one of the dominant retail wholesalers based on the breadth and quality of merchandise offered. Cash strapped customers continue to reckon Costco as a viable option for low-cost necessities. The company is also gradually expanding its E-commerce capabilities. However, stiff competition and cautious consumer spending have been weighing upon the company's performance. (You can read the full research report on Costco here.)

Lockheed Martin’s shares have gained 19.5% year-to-date, outperforming the Zacks Aerospace/Defense sector which has gained 12.8% over the same period. Driving this momentum is Lockheed Martin’s status as a bellwether for the defense space and company's impressive cash flow generation abilities which it generously shares with its shareholders.

The 10% dividend hike and an additional $2 billion buyback authorization add to the company's track record on this front. The analyst likes the company's solid outlook, impressive revenue growth and potential share buybacks. (You can read the full research report on Lockheed Martin here.)

EOG Resources’ shares have gained more than 50% year-to-date, outperforming the Zacks categorized U.S. Oil & Gas Exploration & Production Industry. The analyst likes the fact that EOG Resources has premium acreages in three prospective oil plays in the U.S like Permian, Bakken and Eagle Ford shale plays.

The company could sell future output from these resources at higher oil prices as the commodity has started to shine again with the latest decision of non-OPEC players like Russia to join production cut with OPEC. However, until the uncertainty and volatility in oil prices subside, there is limited upside from current levels. On top of that, the company’s estimate for fourth-quarter loss has been revised wider over a period of last 60 days. (You can read the full research report on EOG Resources here.)

Other noteworthy reports we are featuring today include Alibaba (BABA), CME Group (CME) and Lowe’s (LOW).

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Mark Vickery

Senior Editor

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