The Zacks Analyst Blog Highlights: Magellan Midstream Partners, BP, FedEx, and Google

  The Zacks Analyst Blog Highlights: Magellan Midstream Partners, BP, FedEx,
                   and Google

PR Newswire

CHICAGO, May 1, 2013

CHICAGO, May 1, 2013 /PRNewswire/ -- 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 Magellan Midstream Partners LP
(NYSE:MMP), BP plc (NYSE:BP), FedEx Corp. (NYSE:FDX), Inc.
(Nasdaq:AMZN) and Google Inc. (Nasdaq:GOOG).


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Here are highlights from Tuesday's Analyst Blog:

Magellan Likely to Beat Earnings Ests

We expect pipeline operator, Magellan Midstream Partners LP (NYSE:MMP), to
beat expectations when the company reports its first-quarter 2013 results
before the opening bell on May 2, 2013.

Why a Likely Positive Surprise?

Our proven model shows that Magellan is likely to beat earnings because it has
the right combination of two key factors. 

Positive Zacks ESP:Expected Surprise Prediction or ESP (Read: Zacks Earnings
ESP: A Better Method), which represents the difference between the Most
Accurate estimate of 52 cents and the Zacks Consensus Estimate of 50 cents,
stands at +4.00%. This is a meaningful and leading indicator of a likely
positive earnings surprise for shares.

Zacks Rank #2 (Buy):The stocks with a Zacks Rank #1 (Strong buy), #2 (Buy) and
#3 (Hold) have a significantly higher chance of beating earnings. The
Sell-rated stocks (#4 and #5) should never be considered while going into an
earnings announcement.

The combination of Magellan's Zacks Rank #2 (Buy) and +4.00% ESP makes us very
confident of a positive earnings beat on May 2, 2013.

What is Driving the Better-Than-Expected Earnings?

Magellan owns an attractive portfolio of energy infrastructure assets that
generate stable and recurring fee and tariff-based revenues. This includes the
longest refined petroleum products pipeline system and access to more than 40%
of the refining capacity in the U.S. along with imports, and 85 petroleum
terminals with more than 80 million barrels of storage capacity.

Moreover, Magellan's investment grade credit ratings provide a competitive
advantage in accessing capital at reasonable cost.

Finally, we remain upbeat regarding Magellan's acquisition of petroleum
storage and pipelines from a subsidiary of BP plc (NYSE:BP). Following the
acquisition, Magellan owns one of the largest crude oil storages in the
Cushing crude oil region and will continue to exploit opportunities to improve
utilization of these assets.

FedEx Extends Postal Service Bond

FedEx Express, an affiliate of FedEx Corp. (NYSE:FDX), announced that it will
continue with the air cargo delivery contract with the U.S. Postal Service.
The agreement, which was supposed to expire on Sep 2013, has been renewed for
the next seven years. The new contract comes into effect from Oct 2013.

Per the renewed deal, estimated at $10.5 billion, FedEx Express will continue
to render transportation of Express Mail and Priority Mail within the U.S.
airports. FedEx Express aims to provide the same high-quality services that it
has been offering over the last 12 years to the Postal Department through the
new agreement. Interestingly, the revised contract calls for enhanced
operations, more capacity flexibility and improved activities.

Memphis, Tennessee based FedEx is the leader in global express delivery
services and intends to spread its operations across the U.S., Canada and
Mexico and capitalize on potential business opportunities in NAFTA (North
American Free Trade agreement) markets. The company is boosting its
international business by heavy investments to boost existing routes and make
strategic acquisitions.

FedEx also launched a new business tool to aid e-commerce customers in their
shipping process. The new system, Integration Manager is a Web-based
tool that connects with platforms like Inc.



) and

Google Inc.



). The seamless connection allows enterprises running multiple online stores
to simplify their selling and shipment process.

In the coming days, we expect FedEx to register strong earnings momentum and
growth through long-term expansion opportunities. In Nov 2012, the company
increased its shipping rates by 4.9% for FedEx Ground and FedEx Home Delivery

However, FedEx currently retains a Zacks Rank #4 (Sell), reflecting a number
of risk factors. We expect the company's expansion in Europe to remain
affected by economic volatilities resulting in weak business from the
continent coupled with low Asian demand. Further, increased investment,
competitive threats and unionized workforce could limit the upside potential
of the stock.

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