Tuesday, April 4 2017

Today's Research Daily features new research reports on 16 major stocks, including ExxonMobil (XOM), Colgate-Palmolive (CL) and Honeywell (HON).

ExxonMobil shares tracked the S&P 500 index through year-end 2016, but have lagged the broader index as well as the peer super majors group in the year-to-date period, likely reflecting the company's perceived defensiveness that disadvantages it relative to its 'oilier' peers. Exxon's resilient integrated business model has long been the industry gold standard, which makes it an attractive and relatively low-risk Energy sector option for many investors.

ExxonMobil has been investing in new refining and chemical manufacturing facilities along the U.S. Gulf Coast to enhance manufacturing and export capacity. A fortress balance sheet, an attractive and totally safe dividend and a history of returning excess cash to shareholders are some of the other positives in the Exxon story.

The company recently entered into a sale and purchase agreement with Eni to acquire 25% indirect interest in the natural gas-rich Area 4 block, off the coast of Mozambique. The Zacks analyst discusses the pros & cons of investing in Exxon shares in the updated research report issued today. (You can read the full research report on ExxonMobil here.)

Shares of JPMorgan have gained +29.4% over the past six months vs. +27.7% gain for the Major Banks industry. The Zacks analyst likes the company’s has steady capital deployment activities (dividend hike and share buyback), which reflects its strong balance sheet position. The company remains well positioned to benefit from the improved rate scenario and rising loan demand.

Synergies from retail banking performance and cost-containment efforts will help improving its profitability, going forward. However, a persistent fee income growth challenge remains a major headwind. Also, litigation hassles remain a concern. (You can read the full research report on JPMorgan here.)

Honeywell shares have outperformed the diversified operations industry gaining +7.4% vs. +1.5% in the year-to-date period. The Zacks 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 and has regularly fine-tuned its portfolio to focus on core businesses. Diligent focus on working capital management, free cash flow generation and a conservative balance sheet remain key positive attributes.

However, Honeywell expects a tepid demand pattern for its business jets and mobile scanners in 2017 due to sluggish global growth, volatility in crude oil prices and a tempered Chinese economy. High R&D expenditure to fend competition and stay ahead of technological obsolescence contracts margin and reduces bottom-line growth. (You can read the full research report on Honeywell here.)

Other noteworthy reports we are featuring today include Verizon (VZ), Eli Lilly (LLY) and United Technologies (UTX).

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Mark Vickery

Senior Editor

Note: Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview.

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