Top Analyst Reports For Texas Instruments, Charter & Lowe's
Zacks Investment Research | Dec 25, 2019 11:53PM ET
Thursday, December 26, 2019
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 Texas Instruments (TXN), Charter Communications (NASDAQ:CHTR) (CHTR) and Lowe's (LOW). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Texas Instruments’ shares have underperformed the Zacks General Semiconductor industry year to date (+36.1% vs. +42.3%). The Zacks analyst believes that Texas Instruments is being impacted by sluggish performance of Analog and Embedded Processing segments. Weakening end-market conditions and U.S.-China trade tensions are also overhangs.
Further, weak customer momentum continues to impact the company’s performance in communications equipment market. The stock has underperformed the industry on a year-to-date basis. Nevertheless, Texas Instruments remains confident about efficient manufacturing strategies, strong research and development activities.
Further, increasing investments in the automotive and industrial markets are anticipated to yield good returns for the company. However, high debt level and rising competitive pressure in the auto chip space are headwinds.
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Shares of Charter Communications have gained +18.3% in the past three months against the Zacks Cable TV industry’s rise of +6%. The Zacks analyst believes that the company is benefiting from growth in Internet, mobile, commercial and video revenues.
Increase in Internet speed at no extra cost is also aiding subscriber growth. Additionally, Charter’s spectrum mobile products are gaining traction and subscriber base is increasing rapidly. Launch of spectrum mobile services to small and medium business customers is a key catalyst. Improving free cash flow is a growth driver.
However, commercial revenues continued to suffer due to migration of customers to Spectrum pricing, and packaging from Legacy TWC and Legacy Bright House. Further, Charter persistently loses video subscribers, primarily due to cord-cutting and intense competition from streaming service providers like Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN).
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Lowe's shares have gained +20.6% over the past six months against the Zacks Building Products - Retail industry's rise of +10.3%. The Zacks analyst believes that the stock received a boost when it reported third-quarter fiscal 2019 results, wherein earnings grew year over year and beat the Zacks Consensus Estimate.
Moreover, comps in the quarter increased, driven by solid performance in its U.S. home improvement stores. Strong macroeconomic landscape along with constant efforts to enhance customers’ experience, solid performance of the merchandise category and strength in the Pro business also bode well. Further, efforts to enhance online business led to robust comps growth in lowes.com.
Encouragingly, management raised adjusted earnings guidance for fiscal 2019. However, high level of debt for the past few quarters may act as a deterrent. Also, the company is exposed to competition.
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Other noteworthy reports we are featuring today include Caterpillar (CAT), BlackRock (NYSE:BLK) (BLK) and Zoetis (ZTS).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Mark Vickery
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
Today's Must Read/h6
Featured Reports/h6
Per the Zacks analyst, Caterpillar's focus on strategic investments, cost cutting measures and growing offerings and services as well on digital initiatives like e-commerce, will aid growth.
Per the Zacks analyst, improving assets balance and acquisitions will continue to support BlackRock's revenues.
Per the Zacks analyst, Zoetis companion animal business driven by higher sales of Apoquel and Simparica should maintain growth amid competition.
Per the Zacks analyst, Advanced Micro Devices (NASDAQ:AMD) is benefiting from robust adoption of latest EYPC, Ryzen and Radeon processors.
Per the Zacks analyst, its growing top-line driven by increasing admissions has led to significant growth of the company.
The Zacks analyst believes that TC Energy's C$30 billion of growth projects should support its earnings and dividend payouts.
Per the Zacks analyst, a significant rise in revenues from rides is aiding Uber (UBER). However, heavy investments in sales and marketing are weighing on its bottom line.
Per the Zacks analyst, Caterpillar's focus on strategic investments, cost cutting measures and growing offerings and services as well on digital initiatives like e-commerce, will aid growth.
Per the Zacks analyst, improving assets balance and acquisitions will continue to support BlackRock's revenues.
Per the Zacks analyst, Zoetis companion animal business driven by higher sales of Apoquel and Simparica should maintain growth amid competition.
Per the Zacks analyst, Advanced Micro Devices (NASDAQ:AMD) is benefiting from robust adoption of latest EYPC, Ryzen and Radeon processors.
Per the Zacks analyst, its growing top-line driven by increasing admissions has led to significant growth of the company.
The Zacks analyst believes that TC Energy's C$30 billion of growth projects should support its earnings and dividend payouts.
Per the Zacks analyst, a significant rise in revenues from rides is aiding Uber (UBER). However, heavy investments in sales and marketing are weighing on its bottom line.
New Upgrades/h6
The Zacks analyst believes that Canadian Natural's diverse production mix of synthetic oil, heavy crude oil, natural gas and light crude oil facilitates long-term value and reduces risk profile.
Per the Zacks analyst, a number of buyouts have aided Markel to expand its reinsurance product offerings and to achieve profitable growth in insurance operations.
Per the Zacks analyst, cost reduction initiatives along with increased focus on employee transition and digital platform will drive growth for Beacon Roofing.
The Zacks analyst believes that Canadian Natural's diverse production mix of synthetic oil, heavy crude oil, natural gas and light crude oil facilitates long-term value and reduces risk profile.
Per the Zacks analyst, a number of buyouts have aided Markel to expand its reinsurance product offerings and to achieve profitable growth in insurance operations.
Per the Zacks analyst, cost reduction initiatives along with increased focus on employee transition and digital platform will drive growth for Beacon Roofing.
New Downgrades/h6
The Zacks Analyst remains concerned that weak end-market demand, sluggish global economy, unfavorable currency impact and higher costs will impact National Steel's results.
Per the Zacks analyst, as Pattern Energy does not hedge all of its risks like electricity price, interest rate and foreign currency exchange rate, is exposed to foreign-exchange currency fluctuations.
Per the Zacks analyst, TripAdvisor is facing challenges in its Hotels, Media & Platform and Other segments which are hurting the top-line growth.
The Zacks Analyst remains concerned that weak end-market demand, sluggish global economy, unfavorable currency impact and higher costs will impact National Steel's results.
Per the Zacks analyst, as Pattern Energy does not hedge all of its risks like electricity price, interest rate and foreign currency exchange rate, is exposed to foreign-exchange currency fluctuations.
Per the Zacks analyst, TripAdvisor is facing challenges in its Hotels, Media & Platform and Other segments which are hurting the top-line growth.
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