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Top Research Reports for Texas Instruments, Union Pacific & Mondelez

Top Research Reports for Texas Instruments, Union Pacific & Mondelez

Monday, May 7, 2018

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), Union Pacific (UNP) and Mondelez (MDLZ). 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 >>>

Strong Buy-ranked Texas Instruments’ shares have gained +31.8% in the last year, underperforming the Zacks General Semiconductor industry which has gained +58.4% over the same period. However, Texas Instruments reported strong first quarter results on the back of strength in auto and industrial markets.

The Zacks analyst likes the fact that the company continues to prudently invest its R&D dollars in several high margin, high-growth areas of the analog and embedded processing markets. This is gradually increasing its exposure to industrial and automotive markets and dollar content at customers, while reducing exposure to volatile consumer/computing markets.

Margins continue to expand on secular strength in the auto and industrial markets and manufacturing efficiencies that include growing 300-millimeter Analog output. Continuous dividend hike is a big positive. However, increasing competition, unfavorable currency effect and a high debt load remain concerns.

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

Shares of Union Pacific have outperformed the Zacks Rail industry (+13.9 vs. +8.6%) as well as fellow railroad operator Norfolk Southern Corp. (+11.3%) over the last year. Ushering in further good news, the company reported better-than-expected earnings per share and revenues in the first quarter of 2018. Both the metrics also improved year over year.

Apart from higher freight revenues, volume growth and lower tax rates aided results. Efforts to reward shareholders are also encouraging. Additionally, efforts of the company toward promoting safety are commendable. However, Union Pacific’s decision to withdraw its operating ratio guidance of around 60% in 2019 due to operational issues raises concerns. Other factors like high operating expenses and debt levels are worrisome as well.

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

Mondelez’s shares have lost -12.8% in the last year, outperforming the -17.4% decline of the Zacks Food Preparation industry. Mondelez reported first-quarter 2018 results, with earnings and revenues beating the consensus mark. The company posted impressive results on the back of strong performance in Asia, Middle East & Africa and Europe.

Adjusted earnings grew 9.6%, primarily driven by favorability on interest and less number of shares outstanding. Net revenues increased 5.5 % driven by currency tailwinds. Emerging markets’ net revenues rose 7.6% and the same for Power Brands rose 8.2%. Regionally, Asia, Middle East & Africa and Europe registered an increase of 3.4% and 14.4% in revenues, respectively.

However, revenues in the North America and Latin America declined 1.3% and 2.1%, respectively. Also, gross margin was down 110 basis points (bps) due to unfavorable mix, higher commodity costs and freight inflation.

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

Other noteworthy reports we are featuring today include Estee Lauder (EL), MetLife (MET) and Marsh & McLennan (MMC).

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

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) Benefits From Strong Auto Demand

Volume Growth Buoys Union Pacific (UNP) Amid High Costs

Mondelez's (MDLZ) Margins Strong on Cost Saving Initiatives

Featured Reports

Growing Top Line, Cost Control Aid Marsh & McLennan (MMC)

Per the Zacks analyst, Marsh & McLennan is poised to grow on its diverse product offerings, geographic footprint and strong client retention. Cost reduction and expense management aid its bottom line.

Business Restructuring, Revenue Growth Aids MetLife (MET)

Per the Zacks analyst exit of U.S Retail unit, closing of UK Wealth Management business has freed MetLife from high-risk, non-core operations. Improving business conditions has aided revenue growth.

Solid THV Sales Aid Edwards (EW) Amid Reimbursement Woes

Edwards seeing strong THV sales in the domestic and overseas markets is a major positive. But, the Zacks analyst is worried about reimbursement issues that might hurt the company's financials.

Loan Growth, Higher Rates Aid KeyCorp (KEY), High Cost A Woe

Per the Zacks analyst, KeyCorp is well poised for revenue growth driven by continued loan growth and higher interest rates. However, rise in costs due to its inorganic growth efforts remain a concern.

Pioneer's (PXD) Permian Focus Offsets High Production Costs

Per the Zacks analyst, strong focus on the low-cost and lucrative Permian Basin will help Pioneer Natural combat the rise in production expenses.

Solid Travel Retail Business to Fuel Estee Lauder (EL) Sales

Per the Zacks analyst, Estee Lauder sales are set to gain from efforts to strengthen travel retail, which saw exceptional growth in the third quarter.

Freight Demand Aids Canadian Pacific (CP), High Costs Ail

The Zacks analyst is impressed by Canadian Pacific's top line growth, driven by high freight revenues.

New Upgrades

Strategic Growth Initiatives Aids Allstate's (ALL) Revenues

Per the Zacks analyst,initiatives such as product enhancements, revenue diversification, acquisition of SquareTrade, changes in business mix to focus on profitable ones has aided topline growth.

Robust Aftermarket, Buyouts Catalysts for TransDigm (TDG)

Per the Zacks analyst, strong momentum in commercial aftermarket revenues will continue to drive growth for TransDigm. Its strategic acquisitions are also likely to boost core business, going forward.

ANSYS (ANSS) Benefits From 3DSIM & OPTIS Acquisition

Per the Zacks analyst, buyouts like 3DSIM and OPTIS are enabling ANSYS to bring innovative solutions to the market and also help it to enhance foothold in the competitive simulations market.

New Downgrades

Acorda's (ACOR) Major Drug Ampyra to Face Generic Competition

Per the Zacks analyst, Acorda's primary revenue-generating drug, Ampyra is set to face generic competition after June 2018 as a U.S. District Court invalidated four patents last year.

Price Hikes by Suppliers to Hurt Watsco's (WSO) Margins

Per the Zacks analyst, Watsco's margin performance will be hampered by mid single-digit price increases on both Carrier brand and ICP, by one of its major suppliers Carrier Corporation.

Fierce Competition Weighs on Navigant's (NCI) Profitability

The Zacks analyst believes that Navigant faces stiff competition while acquiring and maintaining clients for its different business segments, which keeps its profitability under pressure.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Union Pacific Corporation (UNP) : Free Stock Analysis Report
 
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
 
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
 
MetLife, Inc. (MET) : Free Stock Analysis Report
 
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
 
The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
 
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