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The Zacks Analyst Blog Highlights: Coca-Cola, Honeywell, Chubb, Statoil and Workday

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For Immediate Release

Chicago, IL – December 1, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Coca-Cola (KO - Free Report) , Honeywell (HON - Free Report) , Chubb (CB - Free Report) , Statoil and Workday (WDAY - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

Top Analyst Reports for Coca-Cola, Honeywell and Chubb

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 Coca-Cola, Honeywell and Chubb. 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 >>>

Coca-Cola’s shares have underperformed the Zacks Soft Drinks Beverages industry since the beginning of the year, (+9.7% vs. +13%). However, Coca-Cola enjoys solid long-term fundamentals given its worldwide reach, strong brand power, higher international presence and impressive cash position.

Although the top line needs to show sustained improvement, the Zacks analyst likes the company’s strategic efforts toward creating the portfolio of a total beverage company with improved marketing and innovation, focus on driving revenues by improved price/mix, digital focus, and productivity initiatives toward driving margins. Moreover, Coca-Cola’s transformative global re-franchising initiatives will lead to better margins and returns as well as superior growth, despite hurting sales/profits in the near term.

Also, Coca-Cola’s new revenue platforms should drive growth over the long term. However, challenging global market conditions, weak CSD volumes and currency and structural headwinds remain challenges.

(You can read the full research report on Coca-Cola here >>>).

Shares of Honeywell have outperformed the Zacks Diversified Operations industry in the year to date period, increasing +32.3% vs. a -4.0% decline. With a flexible yet disciplined focus on cost and productivity, Honeywell’s diversified business portfolio has the potential to earn consistent above-average returns and mitigate operating risks through a balanced organic and inorganic model.

The Zacks analyst likes the company’s diligent focus on working capital management, free cash flow generation and conservative balance sheet. However, adverse foreign currency translations, high R&D expenses and volatility in commodity prices are likely to peg back its growth momentum to some extent.

Although the company’s proactive restructuring initiatives have positioned it to navigate better than many of its peers, it has yet to witness signs of stabilization in a number of its major end markets. A change in the U.S. government’s defense and aerospace funding could also adversely impact sales of the Aerospace business.

(You can read the full research report on Honeywell here >>>).

Chubb’s shares have gained +15.5% year to date, in line with the Zacks Property, Casualty and Title industry. The Zacks analyst thinks Chubb stands a good chance of taking leadership in the P&C space, benefiting from compelling products and services. Its inorganic growth story is impressive, helping it achieve higher long-term ROE.

Investment results are exhibiting improvement owing to improving rate environment. A strong capital position helps Chubb boost in shareholders’ value and invest in strategic initiatives to drive growth. Notably, it is on track to achieve annual run-rate integration-related savings of $875 million (up from $800 million guided earlier) by the end of 2018.

However, exposure to cat loss and escalating expenses raise concerns for Chubb. The company estimates fourth quarter cat loss from wildfire in California to be about $249 million and another $34 million from all other natural catastrophe. Though the Zacks Consensus Estimate for 2017 moved south, the consensus mark increased for 2018.

(You can read the full research report on Chubb here >>>).

Other noteworthy reports we are featuring today include Statoil and Workday.

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