Yahoo Finance Top Stock Reports for United Parcel, Booking Holdings & Lockheed Martin
Tuesday, October 10, 2023
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 United Parcel Service, Inc. (UPS), Booking Holdings Inc. (BKNG) and Lockheed Martin Corporation (LMT). 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 >>>
UPS shares have lagged the broader market as well as rival FedEx (FDX) this year (-11.4% vs. +14.3% for the S&P 500 & +47.7% for FDX). The company now expects revenues in 2023 to be around $93 billion. The new forecast is not only below the previous outlook of $97 billion but also much lower than 2022's actual figure.
Management cited costs associated with the labor deal, inked with 330,000 unionized workers, and declining package volumes induced by the labor negotiations as reasons for lowering the outlook. The five-year deal with the International Brotherhood of Teamsters for better pay and working conditions is worth less than $30 billion. It is likely to keep labor cost at high levels.
However, UPS is looking to drive growth in this uncertain scenario by improving efficiencies. Efforts to reward its shareholders also bode well for UPS. The company's strong free cash flow generating ability is encouraging and supports its shareholder-friendly activities.
(You can read the full research report on United Parcel here >>>)
Shares of Booking Holdings have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+49.3% vs. +33.2%). The company is benefiting from a substantial improvement in booking trends driven by growing demand for travel. This, in, turn, is helping lower cancellation rates.
Booking Holdings expects room night growth to increase at a low double-digit rate on a year-on-year basis in the third quarter. Solid growth in domestic bookings is driving growth. The company is experiencing solid momentum in international regions, which is a positive. Strong growth in rental cars, airline ticket units and booked room nights is another positive.
Solid momentum across the agency, merchant, advertising and other businesses is a tailwind. Further, strengthening alternative accommodation business and flight capabilities are major positives. However, intensifying competition is a headwind.
Lockheed Martin shares have outperformed the Zacks Aerospace - Defense industry over the past year (+9.0% vs. -0.1%). The company keeps on securing big defense contracts from the Pentagon and other U.S. allies, which in turn add up to solid backlog count. Its strong backlog boosts long-term growth.
Lockheed remains the largest U.S. defense contractor with a steady order flow from its leveraged presence in the Army, Air Force, Navy and IT programs. The solid U.S. defense budgetary provisions should boost its business. Lockheed boasts strength in the international defense market.
Yet, America and Turkey's tiff as a result of the latter accepting Russian products may hurt its component supply from Turkey. It is facing performance issues concerning some of its products, which may hurt its results. An uncertainty regarding the possible sanction by China on Lockheed might impact the latter.
(You can read the full research report on Lockheed Martin here >>>)
Other noteworthy reports we are featuring today include CME Group Inc. (CME), Intercontinental Exchange, Inc. (ICE) and General Dynamics Corporation (GD).
Director of Research
Sheraz Mian
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 Boost UPS' Prospects, High Costs Hurt
Solid Gross Bookings Momentum Aids Booking Holdings (BKNG)
Order Growth Boosts Lockheed (LMT), Tiff With Turkey Ails
Featured Reports
CME Group (CME) Banks on Futures Products, Expenses Hurt
Per the Zacks analyst, CME Group is well poised for growth with the expansion of futures products in emerging markets and OTC offerings. However, elevated expenses remain an overhang.
Strength in Global Data Services Aid Intercontinental (ICE)
Per the Zacks analyst, Intercontinental is set to grow on solid portfolio, wide range of risk management services, cost synergies and solid capital position. Yet, rising expenses might weigh on margin
Order Flow Aids General Dynamics (GD) Amid Supply Challenges
Per the Zacks Analyst, solid order flow for its products bolsters General Dynamics' revenue growth prospects. Yet COVID-19 led supply chain challenges may impact its revenues.
Energy Drinks Category Aids Growth at Monster Beverage (MNST)
Per the Zacks analyst, Monster Beverage is experiencing continued strength in its energy drinks category driven by its Monster Energy brand. This is likely to continue throughout 2023.
Organic Growth Aids Cencora (COR) Amid Competition
Per the Zacks analyst, Cencora should benefit from continued solid organic revenue growth, World Courier unit and Specialty distribution business amid cutthroat competition in the Medtech space.
High Data-Center Demand, Expansions Aid Digital Realty (DLR)
Per the Zacks analyst, solid demand for Digital Realty's assets amid growth in digital infrastructure and cloud adoption, and expansion efforts bode well. However, stiff competition is a key concern.
Operational Improvements Aid Otis (OTIS), Currency Woes Ail
Per the Zacks analyst, Otis benefits from operational improvements, business expansion and product innovation. However, foreign currency woes, wage inflation, and higher input and corporate costs ail.
New Upgrades
Axon (AXON) Rides on Solid Demand for TASER 7 & Axon Fleet 3
The Zacks analyst is optimistic about the strength in Axon's TASER segment due to strong demand for TASER 7, and higher shipments of Axon Fleet 3 in-car cameras within the Software & Sensors unit.
Qorvo (QRVO) Rides on Portfolio Strength, Manufacturing Scale
Per the Zacks analyst, Qorvo is likely to benefit from its diversified product portfolio, systems-level expertise, R&D knowhow, manufacturing scale and internal assembly and test capabilities.
Halozyme's (HALO) ENHANZE Drug Delivery Technology Aid Growth
Per the Zacks Analyst, Halozyme's collaboration deals with large pharma companies related to ENHANZE technology, drives revenue growth. The company's restructuring initiatives are also encouraging.
New Downgrades
Dril-Quip's (DRQ) Lower Demand for Offshore Drilling Ails
Per the Zacks analyst, Dril-Quip faces headwinds from delayed offshore drilling recovery and reduced demand for its specialized equipment. Rising cost of sales adds to the concern.
Lower Prices, Weak Demand Ail Huntsman (HUN)
Per the Zacks analyst, lower selling prices due to competitive pressure will weigh on the company's margins. Softer demand in all regions will also hurt sales volumes.
Tyson Foods' (TSN) Margins Remain Pressurized by Higher Costs
Per the Zacks analyst, Tyson Foods is grappling with weak margins for a while. Operating margin fell 600 basis points in third quarter on higher cattle and labor costs with adverse derivative impacts.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
General Dynamics Corporation (GD) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
CME Group Inc. (CME) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
