The Zacks Analyst Blog Highlights:United ParcelService Inc, FedEx Corporation, U.S. Bancorp, Mitsubishi UFJ Financial Group

The Zacks Analyst Blog Highlights:United ParcelService Inc, FedEx Corporation,
   U.S. Bancorp, Mitsubishi UFJ Financial Group Incand UMB Financial Corp.

PR Newswire

CHICAGO, Nov. 15, 2012

CHICAGO, Nov. 15, 2012 /PRNewswire/ -- 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 United Parcel Service, Inc (UPS),
FedEx Corporation (FDX), U.S. Bancorp  (USB), Mitsubishi UFJ Financial Group
Inc (MTU) and UMB Financial Corp (UMBF).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks
are offered free.

Here are highlights from Thursday's Analyst Blog:

UPS Adds Cloud Technology

World's largest freight forwarding company, United Parcel Service, Inc. (UPS)
is upgrading its supplier management services by introducing UPS Order Watch.
The new addition is a cloud based technology that will facilitate the inbound
supply chain of its customers.

The new Order Watch technological platform, currently available to existing
customers, will be offered to new customers in 2013 as well.

UPS' supplier management service is a product of its international ocean and
air freight forwarding business. The introduction of cloud based technology to
this service would add to the service quality, thereby attracting more new
customers.

The Order Watch platform aims at enhancing efficiency in terms of timeliness,
accuracy alongside improving processing and management of suppliers. We are
also hopeful that the introduction of this cloud based technology would remain
accretive in stimulating the otherwise down international freight business of
UPS given current macro economic factors.

The company in its previous reports had already indicated a slowdown in
manufacturing business in Asia. UPS now apprehends a downtrend in
manufacturing orders due to lower exports in China.

Apart from international business, UPS expects U.S. Domestic Package revenue
to grow in the range of 1%–2%, down from its previous projection of mid
single-digit growth. The company even expects U.S. Domestic Package average
daily volume growth to moderate due to unfavorable macroeconomic factors.

It also expects a lackluster volume growth in premium and B2B products as
customers are seeking more cost effective logistics solutions. Consequently,
the company has set a conservative earnings target ranging between $4.55 and
$4.65 for 2012, which is substantially lower than its previously projected
targets. The current Zacks Consensus Estimate for 2012 is pegged at $4.58;
concurrent with the company's range of estimates.

However, we believe over the long term the company will continue to invest in
technology and network enhancements that would provide a competitive edge over
its peers like FedEx Corporation (FDX). Its integrated sales approach also
promises future growth, given its industry-leading margins and financial
strength. The company is also seeking capacity adjustment by reducing Asian
air networks to improve cost structure. Further, its focus on continued
productivity gains, improved operating profit, and strengthening liquidity
position amidst economic challenges also is encouraging.

We have a long-term Neutral recommendation on UPS and FedEx. Both these stocks
retains a Zacks #3 Rank, implying a short-term (1-3 months) Hold rating.

U.S. Bancorp Unit Buying AIS

In an effort to augment its securities services business, U.S. Bancorp's (USB)
subsidiary - U.S. Bancorp Fund Services, LLC – is acquiring AIS Fund
Administration ("AIS"), which offers fund administration and related services
to alternative investment managers.

The deal leads to the addition of about $25 billion in hedge fund assets under
administration to the U.S. Bancorp subsidiary. Along with AIS's assets, its
staff consisting of 176 members at its offices in New Jersey, the United
Kingdom and the Cayman Islands, will also be integrated into U.S. Bancorp Fund
Services.

Following this deal, $50 billion in alternative investment assets would be
serviced by this U.S. Bancorp unit. However, the terms of the deal were not
made public and the transaction is subject to regulatory approval.

Our Take

We are encouraged with this deal as it would help the company augment its fund
servicing capacities and assist it to increase focus on corporate trust
services.

As a matter of fact, U.S. Bancorp has a well-balanced business model, with
non-interest revenue representing nearly half of its total revenue. Its
results have been driven by a combination of acquisitions and organic growth.

In addition to strengthening its existing fee-based operations to generate
long-term revenue growth, U.S. Bancorp announced several payment and
trust-related acquisitions during the past year. This included a portfolio of
approximately $700 million of credit card assets, the institutional trust
business of Union Bank, a unit of UnionBanCal Corporation of San Francisco.
Notably, UnionBanCal is a subsidiary of Mitsubishi UFJ Financial Group Inc.
(MTU).

Further, it comprises the Indiana corporate trust business of UMB Bank N.A., a
unit of UMB Financial Corp. (UMBF). Going forward, the company expects
additional opportunities in payments and corporate trust in the coming years.

In total, during the downturn, the company acquired over $3.2 billion in card
assets and $1.1 trillion in trust assets under administration. This
diversification in business is expected to continue to help maintain growth in
an otherwise unfavorable operating environment.

U.S. Bancorp currently retains a Zacks #2 Rank, which translates into a
short-term Buy rating. Considering the fundamentals, we maintain a long-term
Neutral recommendation on the stock.

Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks
are offered free.

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