Top Research Reports for Union Pacific, Alibaba & GlaxoSmithKline

Friday, November 24, 2017

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 11 major stocks, including Union Pacific (UNP), Alibaba (BABA) and GlaxoSmithKline (GSK). 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 >>>

Union Pacific’s shares have outperformed its industry as well as fellow railroad operator Kansas City Southern over the last three months. While the company gained +12%, the industry it belongs to and Kansas City Southern have rallied +7.2% and 1.5%, respectively, in the same period. Ushering in further good news, the company's board of directors approved a 10% hike in its quarterly dividend payout in November, 2017.

Also, Union Pacific’s efforts to cut costs to drive its bottom line are impressive. Strong performances of the company's intermodal and industrial products units, so far this year, also raise optimism in the stock. However, the company's high debt levels are a potent threat. Declining automotive volumes due to sluggish vehicle production in the United States are added concerns.

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

Shares of Alibaba have outperformed the Zacks Electronic Commerce industry, on a year-to-date basis, gaining +116.2% vs. +63.6%. The company has delivered strong fiscal second-quarter results driven by robust growth in core e-commerce business. Other drivers include strong mobile and international strength.

The Zacks analyst likes Alibaba’s strong core e-commerce business, its continued efforts to develop new products, international growth opportunities, strong financial position and growing cloud computing services. However, macro headwinds, continued investments and increasing competition from Tencent Holdings and Baidu remain the overhangs.

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

GlaxoSmithKline's shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period, losing -9% versus the industry’s +14.8% increase. Glaxo should continue to see strong performance in its Pharmaceuticals and Vaccines units. The Zacks analyst likes the company’s efforts to develop its pipeline.

Performance of new products has been encouraging. Recent FDA approval for two key pipeline candidates -- Shingrix and Trelegy Ellipta -- was a major boost. However, persistent challenges like stiff competition, genericization and pricing pressure have been impacting the company’s performance. In particular, pricing dynamics and competitive pressure are hurting sales of its top-selling drug Advair.

Meanwhile, Advair is expected to face generic competition next year, which will further hurt sales. The slowdown in sales of the Consumer Healthcare unit this year is also a concern. Estimate movement has been mixed ahead of Q3 earnings release. The company has a positive record of earnings surprises in recent quarters.

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

Other noteworthy reports we are featuring today include eBay (EBAY), Public Storage (PSA) and Welltower (HCN).

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Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Dividends, Buybacks Aid Union Pacific (UNP) Amid Debt Woes

Rising Expenses Weigh on Alibaba's (BABA) New Retail Push

Three New Products Strengthen Glaxo's (GSK) Portfolio

Featured Reports

Facebook Partnership Aids eBay (EBAY) Amid Competition Woes

The Zacks analyst believes that partnering with Facebook will fuel growth in eBay's Marketplace business, contributing significantly to the company's top line.

Nerlynx Approval Boosts Puma (PBYI), Cancer Space Crowded

Per the Zacks analyst, though Puma's targeted breast cancer space is highly crowded, the recent FDA approval of Nerlynx is expected to consistently drive the company's sales in the near-term.

Public Storage (PSA) Gains from Buyouts, Supply Woes Remain

Per the Zacks analyst, Public Storage is poised to gain from its high brand value, strategic acquisitions and robust presence in key cities.

Higher Transaction Fees Aid Cboe Global (CBOE), Costs Ail

Per the Zacks analyst, increasing transaction fees will continue to boost Cboe Global Markets' revenues, thereby resulting in the company's overall growth.

Welltower (HCN) Gains From Solid Senior Housing Portfolio

Per the Zacks analyst, Welltower's focus on senior housing assets amid an increasingly ageing population bodes well.

New Upgrades

Fleet Upgrade, Capacity Discipline Boost GOL Linhas (GOL)

The Zacks analyst appreciates the company's efforts to modernize its fleet. Its focus on capacity discipline should cause improvement in yields. Efforts reduce debt levels also raise optimism.

Urban Outfitters' (URBN) Digital Endeavors to Boost Sales

Per the Zacks analyst, Urban Outfitters commitment to improve comps, invest in direct-to-consumer business, enhance productivity, expand e-commerce sales and add new brands bodes well for the stock.

New Downgrades

Low Margin, Soft Acquired Business to Hurt Dycom (DY)

Per the Zacks analyst, margin pressure due to Dycom's adverse mix of work activities is weighing on its profitability. Reduced contributions from the acquired business also remain a concern.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Union Pacific Corporation (UNP) : Free Stock Analysis Report
 
Public Storage (PSA) : Free Stock Analysis Report
 
Welltower Inc. (HCN) : Free Stock Analysis Report
 
GlaxoSmithKline PLC (GSK) : Free Stock Analysis Report
 
eBay Inc. (EBAY) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
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