Tuesday, June 1, 2021
 

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), Medtronic plc (MDT) and Shopify Inc. (SHOP). 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 >>>
 

Shares of United Parcel Service have outperformed the Zacks Transportation - Air Freight and Cargo industry in the year-to-date period (+27.4% vs. +24.9%). The Zacks analyst believes that United Parcel Service is being aided by a significant ramp-up in home deliveries amid the prevalent coronavirus pandemic. In fact, exponential e-commerce growth emerged as a huge booster for UPS amid this continued pandemic-ravaged scenario and is responsible for its earnings outperformance for four successive quarters.
 

The Zacks analyst is also impressed by UPS' efforts to reward its shareholders even in the current uncertain times. Strong free cash flow generation is another positive. The bullish sentiment surrounding the stock is evident from the Zacks Consensus Estimate for 2021 earnings being revised upward over the past 60 days.
 

However, high operating costs are concerning. The COVID-induced weakness in the industrial sector is also a bane. Further, softness in business-to-business average daily volumes is likely to persist throughout 2021.
 

(You can read the full research report on United Parcel Service here >>>)
 

Medtronic shares have outperformed the Zacks Medical – Products industry in the last one-year period (+28.9% vs. +14.8%). In fact, Medtronic’s fourth-quarter fiscal 2021 earnings and revenues both were ahead of the respective Zacks Consensus Estimate. Each operating segment and geography registered strong year-over-year growth on an organic basis. The results reflected a strong recovery from the impact of the COVID-19 pandemic on elective procedures that the company experienced in April 2020.
 

The Zacks analyst believes that the company is winning shares in an increasing number of its businesses. The quarter’s gross and operating margins showed stupendous improvement. Fiscal 2022 EPS and revenue guidance indicating strong growth buoys optimism.
 

On the flip side, the company’s performance continued to get dented by deferred procedures due to the pandemic, especially in the emerging markets.
 

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

Shares of Shopify have underperformed the Zacks Internet – Services industry in the year-to-date period (+12.2% vs. +25.9%). The Zacks analyst believes that higher investments on product development and fulfillment platform amid stiff competition in the e-commerce space are likely to limit margin expansion in the near term.
 

Nevertheless, Shopify’s first quarter results gained from e-commerce boom induced growth in the merchant base. Increases in buying of essentials due to another COVID-19 wave led stay-at-home wave has transformed digital commerce.
 

Further, solid adoption of new merchant-friendly applications amid evolving retail environment, holds promise. Additionally, partnerships with TikTok, Walmart and Facebook are expected to expand merchant base, going ahead. Also, initiatives aimed at international expansion are noteworthy.
 

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

Other noteworthy reports we are featuring today include American Express Company (AXP), Square, Inc. (SQ) and U.S. Bancorp (USB).
 

Time to Invest in Legal Marijuana
 

If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
 

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
 

You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
 

Today, Download Marijuana Moneymakers FREE >>
 

Sheraz Mian
 

Director of Research
 

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>>>