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Research Daily

Tuesday, November 22 2016

Today's Research Daily features new research reports on 16 major stocks, including Visa (V), Starbucks (SBUX) and Union Pacific (UNP).

Visa shares have gained more than 5% year-to-date, modestly below MasterCard's (MA) performance, reflecting concerns about high client incentives, the stronger U.S. dollar, and global economic uncertainty. These issues notwithstanding, the Zacks analyst likes Visa’s strategic acquisitions and alliances, technology upgrades and effective marketing efforts. The company has reaffirmed that the acquisition of Visa Europe will be accretive in 2017. Additionally, the latest dividend hike reflects Visa’s efforts to enhance shareholders’ value. However, a  (You can read the full research report on Visa here>>)

Starbucks shares have struggled this year on concerns about the company's growth outlook. The stock has partly recovered lately, but still lags the broader market. In the updated research report issued today, the Zacks analyst discusses the pros & cons of investing in the stock, with the analyst pointing to the company's solid execution of several initiatives in the U.S. and highlights its potential to be an international powerhouse in CPG and retail. Best-in-class loyalty programs and digital offerings are expected to drive profits in fiscal 2017 and beyond. On the flip side, economic, geopolitical and consumer headwinds throughout the EMEA region had a negative impact on Starbucks’ results. Again, macro-related weakness and tough comps in Japan raise concerns. (You can read the full research report on Starbucks here>>)

Union Pacific shares handily outperformed the peer transportation group as well as the broader market (the stock is up an impressive 29% year-to-date). Driving the stock's outperformance despite well-known headwinds facing the transportation group as a whole is Union Pacific's track record of operating efficiencies, strong cash flows and shareholder-friendly policies. The company's recent announcement of a dividend hike and new stock buyback program is further cementing that reputation. Growing optimism about the economy on the back of hopes of market friendly policies from the new administration is helping the stock as well as the broader transportation group. But the company's near-term operating outlook still reflects headwinds from the coal space and decreasing volumes from the factory sector. (You can read the full research report on Union Pacific here>>)

Other noteworthy reports we are featuring today include FedEx (FDX), Wal-Mart (WMT) and Verizon (VZ).

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Sheraz Mian

Director of Research

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