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Top Analyst Reports for Texas Instruments, Blackstone & Northrop Grumman

Mark Vickery
Top Analyst Reports for Texas Instruments, Blackstone & Northrop Grumman

Thursday, July 25, 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), Blackstone (BX) and Northrop Grumman (NOC). 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 >>>

Texas Instruments’ shares have gained +35.6% year to date, outperforming the Zacks General Semiconductor industry which has increased +23.2% over the same period. Texas Instrument delivered better than expected second quarter results. However, both earnings and revenues declined on a year-over-year basis.

The company witnessed sluggishness across both the Analog and Embedded Processing segments owing to overall weak demand environment. Nevertheless, Texas Instruments has revised its guidance for 2019 revenues upward despite slowdown in chip sales globally. The Zacks analyst thinks this is likely to help the company in winning shareholders’ confidence.

Moreover, the company remains confident on portfolio strength, efficient manufacturing strategies and optimized capital allocation in growth areas. Further, growing investments in industrial and automotive markets are positives. However, U.S.-China trade tensions is a major headwind.

(You can read the full research report on Texas Instruments here >>>).

Shares of Blackstone have outperformed the Zacks Investment Management industry over the past six months, (+48.5% vs. +12.1%). The company’s earnings surpassed expectations in two of the trailing four quarters. Its second-quarter 2019 results benefited from lower expenses, partly offset by a decline in revenues. The Zacks analyst thinks the company remains well positioned to capitalize on its fund-raising ability.

Also, it will likely benefit from revenue mix, inorganic growth efforts and persistent asset inflows. The company has converted itself from a publicly traded partnership to a corporation, which will help it attract more investors for its stock.

However, mounting expenses (mainly due to higher general and administrative costs) will likely hurt bottom-line growth. Moreover, the company’s capital deployment activities look unsustainable which remain a major near-term concern.

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

Northrop Grumman’s shares have outperformed the Zacks Aerospace Defense industry over the past year, gaining +20.1% over the period versus the industry’s +5% increase. Northrop Grumman ended second-quarter 2019 on an impressive note, wherein both earnings and revenues surpassed their respective expectations.

The Zacks analyst thinks that since it is a major U.S. defense contractor, Northrop Grumman continues to enjoy a strong position in the Air Force, Space & Cyber Security programs. Increasing international opportunities are expected to boost the company’s margin growth.

However, it continues to incur high operating expenses on account of increasing product costs. Such higher operating expenses tend to hurt profit margins. A comparative analysis of its historical EV/EBITDA ratio depicts a relatively gloomy picture that might be a cause for concern.  

(You can read the full research report on Northrop Grumman here >>>).

Other noteworthy reports we are featuring today include Capital One Financial (COF), Biogen (BIIB) and Sherwin-Williams (SHW).

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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 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

Texas Instruments (TXN) Banks on Optimal Capital Allocation

Inflows Aid Blackstone's (BX) Asset Growth, High Costs a Woe

Steady Order Flow, Favorable Budget to Boost Northrop (NOC)

Featured Reports

Kinder Morgan (KMI) Banks on PHP Project, Debts High

Kinder Morgan's proposed Permian Highway Pipeline (PHP) project will help it cash in on the prolific basin???s bottlenecks. However, a levered balance sheet is worrying, per the Zacks analyst.

Biogen (BIIB) Diversifies Beyond MS, Competition Lurks

The Zacks analyst likes Biogen's strong portfolio of multiple sclerosis (MS) drugs and efforts to foray into other areas. However, MS is a competitive space.

Valspar Buyout to Aid Sherwin-Williams (SHW) Amid Cost Woes

While Sherwin-Williams should gain from synergies of the Valspar acquisition, hefty costs related to the buyout will weigh on its FY19 earnings, per the Zacks analyst.

Card Focus, Loans Aid Capital One (COF), Asset Quality a Woe

Per the Zacks analyst, focus on credit card and online banking operations, solid loan growth and strong balance sheet aid Capital One.

Edwards (EW) Rides on Solid TAVR Sales, Global Prospects

Per the Zacks analyst, strong transcatheter aortic valve replacement sales in the domestic and global markets is a major positive.

High Card Sales Aid Discover Financial (DFS), Expenses Hurt

Per the Zacks analyst, increasing card sales volume, supported by alliances and partnerships has driven performance.

Solid User Growth & Premium Content Demand Aids Snap (SNAP)

Per the Zacks analyst, Snap benefits from improving user growth driven by strong adoption of Augmented Reality (AR) Lenses and demand for premium content.

New Upgrades

Solid Momentum in Vans Brand Aids Growth at V.F. Corp (VFC)

Per the Zacks analyst, V.F. Corp's Vans brand is displaying strength globally with robust growth in all regions, channels and product categories. Sales for Vans grew 23% in first-quarter fiscal 2020.

JetBlue (JBLU) Buoyed by Passenger Revenues, Fleet Upgrade

The Zacks analyst likes the uptick in passenger revenues at JetBlue on the back of strong demand for air travel. Efforts to upgrade its fleet are also encouraging.

Murphy USA (MUSA) to Gain from Proximity to Walmart Stores

The Zacks analyst believes that the proximity of Murphy USA's fuel stations to Walmart supercenters helps the company leverage the strong and consistent traffic that these stores attract.

New Downgrades

High Operating Expenses & Food Costs Hurt Chipotle (CMG)

Per the Zacks analyst, Chipotle is plagued by costs related to marketing and promo initiatives. Additionally, higher food and labor costs are hurting the company of late.

R&D Expenses & Customer Concentration Hurt Allison (ALSN)

Per the Zacks analyst, rising R&D expenses due to realization of electrification objectives and propulsion solutions are hampering its margin. Huge dependence on a few customers is worrisome.

High Costs, Concentration Risk Hurt Webster Financial (WBS)

Per Zacks analyst, efforts to bolster HSA Bank segment and transform Community Banking unit keep Webster Financial's costs high. Also, substantial exposure to commercial loans keeps us apprehensive.

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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
The Sherwin-Williams Company (SHW) : Free Stock Analysis Report
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
Capital One Financial Corporation (COF) : Free Stock Analysis Report
Blackstone Group Inc/The (BX) : Free Stock Analysis Report
Biogen Inc. (BIIB) : Free Stock Analysis Report
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