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Top Research Reports for Today: DIS, TXN, LMT

Mark Vickery

Friday, March 31, 2017

Today's Research Daily features new research reports on 16 major stocks, including Disney (DIS), Texas Instruments (TXN) and Lockheed Martin (LMT).

Disney shares have outperformed the Zacks Media Conglomerates sector over the past six months, gaining +22.4% vs. +19.8%, driven by the blockbuster performance of its movies. The company’s recently released live-action remake Beauty and the Beast has so far garnered above $750 million at box office. Earlier, the company had reported earnings beat in first-quarter fiscal 2017.

The Zacks analyst likes Disney's movie business and the parks & resorts division. But over the last few quarters, Disney has been weighed down by concerns about ESPN whose future growth has been clouded by the evolving media landscape as a result of 'cord cutting' and the steady migration of subscribers to online and digital platforms. Identical to performances in the past few quarters, ESPN has disappointed in the first quarter again. (You can read the full research report on Disney here.)

Shares of Buy rated Texas Instruments shares gained +39.9% over the last one year, outperforming the Zacks Semiconductor - General industry which has gained +35.3 over the same period. Part of the momentum reflects an improved margin outlook, secular strength in the auto and industrial markets, a stronger mix of analog and embedded processing products, benefits of restructuring actions and more 300mm capacity coming online. The only negatives at this point appear to be strengthening competition particularly for auto chips given recent market consolidation. (You can read the full research report on Texas Instruments here.)

Lockheed Martin shares have gained +21.3% over the past year, modestly underperforming the aerospace/defense sector, which has gained +25.6.6% over the same period. Driving this momentum is Lockheed Martin’s status as a bellwether for the defense space and the company's impressive cash flow generation abilities which it generously shares with its shareholders.

The Zacks analyst likes the company's solid outlook, impressive revenue growth and potential share buybacks. However, the threat of sequestration looms large for this company, as it draws a major portion of its revenues from the defense department. (You can read the full research report on Lockheed Martin here.)

Other noteworthy reports we are featuring today include Abbott (ABT), Bank of New York Mellon (BK) and Vertex Pharmaceuticals (VRTX).

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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

Disney's (DIS) Movie Business Continues to Impress Investors

Texas Instruments (TXN) Benefitting from Strong Market Position

Lockheed Martin (LMT) to Gain from Steady Orders Amid Risks

Featured Reports

Abbott's (ABT) St Jude Buyout Spurs Portfolio amid Legal Woes

The covering analyst thinks Abbott is well positioned for growth on the on-going St Jude integration. However, uncertainty about the Alere tie up is weighing on the stock.

Vertex (VRTX) Strong in CF Market; Pipeline Impressive

The Zacks analyst thinks the company's impressive cystic fibrosis pipeline may drive long-term growth. Moreover, key drug Kalydeco and Orkambi is performing well with strong market presence.

Sirius XM's (SIRI) Net Subscriber Growth Impress Amid Risks

The covering analyst appreciates the company's robust net subscriber growth. Efforts to expand its product portfolio are also encouraging.

Mylan (MYL) Gets CRL for Generic Advair From the FDA

The Zacks analyst thinks Mylan received a setback when its application for generic Advair was issued a CRL given the market for the same.

BNY Mellon (BK) To Gain From High Rates; Legal Issues Linger

The Zacks analyst thinks the gradual ease in BNY Mellon's margins due to improving rates is expected to aid top-line growth. However, the adverse impact of regulatory restrictions remains a concern.

SABESP (SBS) Q4 Earnings Impressive, Potential Solid Amid Risks

SABESP's earnings surged 108% year over year in fourth-quarter 2016. Its prospects are bright on growing demand and investments.

Smucker (SJM) to Gain from Acquisitions; Despite Headwinds

According to the Zacks analyst, negative currency, lower coffee volumes, unfavorable pricing and weak pet food sales remain concerns.

New Upgrades

Darden (DRI) Set to Grow on Cheddar's Buyout, Initiatives

Darden should keep performing well in the quarters ahead on the back of the recent acquisition of Cheddar's along with its sales and technology-driven initiatives, per the Zacks analyst.

Enbridge's (EEP) Bakken Pipeline Buyout to Boost Returns

The Zacks analyst appreciates Enbridge Energy Partner's recent purchase of 27.6% interest in the Bakken Pipeline System. The deal should help the partnership with attractive returns in the near term.

Aflac (AFL) Continues to Grow Despite Weak Japan Business

The covering analyst thinks Aflac's U.S and Japan business remains weak; turnaround initiatives such changes in product mix, introduction of new product, recruitment of brokers will bring growth.

New Downgrades

Westport Fuel Systems (WPRT) Q4 Loss Wider than Estimates

Westport Fuel Systems??? fourth-quarter 2016 adjusted loss came in wider than estimates. Per the Zacks analyst, sustained losses, weakness in the CWI JV and high cash outflow are headwinds.

TELUS (TU) Facing Intense Wireless Competition in Canada

According to the covering analyst, in spite of strong IoT business and expansion of PureFibre network, TELUS is facing severe competitive threat in both wireless and wireline markets of Canada.

Dominion's (D) lower hedged power prices to hurt earnings

The Zacks analyst believes risk associated with operation of nuclear power plants and lower hedged power prices could adversely impact Dominion's performance.

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Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report
Texas Instruments Incorporated (TXN): Free Stock Analysis Report
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Walt Disney Company (The) (DIS): Free Stock Analysis Report
Bank Of New York Mellon Corporation (The) (BK): Free Stock Analysis Report
Abbott Laboratories (ABT): Free Stock Analysis Report
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