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Top Stock Reports for Texas Instruments, CSX & Norfolk Southern

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·6 min read
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  • NSC
  • TXN
  • DE
  • CSX

Wednesday, May 26, 2021

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 Inc. (TXN), CSX Corp. (CSX) and Norfolk Southern Corp. (NSC). 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 >>>

Shares of Texas Instruments have outperformed the Zacks Semiconductor - General industry in the last one-year period (+60.2% vs. +39.6%). Additionally, Texas Instruments reported strong first quarter results wherein both earnings and revenues have topped the estimates.

The Zacks analyst believes that growth in the personal electronics market owing to the current work-from-home trend drove the top-line growth. Further, a rebound in the automotive market was a tailwind. Also, solid growth in the industrial market was a positive. Strong performance of Analog and Embedded Processing segments contributed well.

Further, the company’s portfolio of long-lived products and efficient manufacturing strategies are other positives. Also, continuous returns to shareholders are likely to instill investor optimism in the stock. However, coronavirus related uncertainties remain major headwinds.

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

Shares of CSX have gained +6.6% in the last three months against the Zacks Transportation - Rail industry’s gain of +5.4%. The Zacks analyst believes that CSX is benefiting from robust intermodal volumes, thanks to strong demand for transportation services due to inventory replenishment and higher volumes from East Coast ports.

With freight volumes improving as the economy continues to recover, CSX hopes to achieve double-digit revenue growth in the current year. The company’s efforts to reward shareholders are encouraging. Its sound liquidity position is an added positive.

However, weakness in merchandise and coal volumes is a major cause for concern. With coronavirus concerns continuing, there remains uncertainty surrounding the company’s prospects. CSX’s high capital expenditures are also worrisome as it has the potential to hurt the bottom line.

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

Norfolk Southern shares have outperformed the Zacks Transportation – Rail industry in the year-to-date period (+17.0% vs. +8.8%). In fact, Norfolk Southern reported better-than-expected earnings per share and revenues in first-quarter 2021. Both metrics also improved year over year. Results were aided by the 3% rise in overall volumes. Operating ratio (operating expenses as a % of revenues) improved in the quarter owing to low costs and higher revenues.

However, disappointing performance of the Merchandise segment in the quarter is concerning. Segmental revenues and volumes declined 4% and 3% year over year in the March quarter. Nevertheless, the Zacks analyst is impressed by the company's commitment to reward its shareholders even in the current turbulent scenario. In first-quarter 2021, the company paid $840 million to its shareholders through dividends and buybacks. A strong free cash flow generation too supports its shareholder-friendly activities.

(You can read the full research report on Norfolk Southern here >>>)

Other noteworthy reports we are featuring today include Deere & Company (DE), Edwards Lifesciences Corporation (EW) and UBS Group AG (UBS).

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

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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

Growth in Personal Electronics Aids Texas Instruments (TXN)

CSX Backed by Strong Intermodal Volumes Amid Capex Woes

Free Cash Flow Lifts Norfolk Southern (NSC), Coal Woes Stay

Featured Reports

Expansion Plans Aids Edison International (EIX), Costs Hurt

Per the Zacks analyst, focus on infrastructural development programs will boost top line, going ahead. However, inability to recover uninsured wildfire-related costs may affect financial condition.

United Therapeutics' (UTHR) Pipeline Strong Amid Competition

The Zacks analyst likes United Therapeutics' efforts to develop expanded indications for its pulmonary arterial hypertension drugs like Orenitram and Tyvaso amid increased competition.

Kinder Morgan (KMI) Banks on Permian Highway Pipeline

Kinder Morgan secures additional fee-based revenues since its Permian Highway Pipeline is delivering incremental gas volumes. However, reducing project backlog is concerning the Zacks analyst.

End Markets to Aid Kennametal (KMT) Amid Supply -Chain Woes

Per the Zacks analyst, Kennametal (KMT) is poised to benefit from improving end market conditions as well as solid product offering and focus on innovation.

Voya Financial (VOYA) Benefits From Investment Management

Per the Zacks analyst, solid performance at the Investment Management segment backed by increased investment capital revenues and higher fee-based margin has been driving revenue growth at the company

Low Interest Rates Continue to Hurt UBS Group's (UBS) NII

Per the Zacks analyst, UBS Group's net interest income continue to remain under pressure due to the prevailing low rate environment in the European economy.

Edwards' (EW) Critical Care Business Solid amid Forex Woes

The Zacks analyst is optimistic about Edwards' Critical Care business on robust demand for products used in intense surgeries.

New Upgrades

Innovation & Improving End Markets to Drive Deere (DE)

Per the Zacks analyst, Deere will gain on its focus on launching products with advanced technologies and features as well as strong agricultural markets and improving construction demand.

Focus on Pro Customers to Aid Home Depot's (HD) Top Line

Per the Zacks analyst, Home Depot gains from strategic investments to enhance Pro ecosystem with services like tool rental, delivery and its B2B website. Pro sales outpaced DIY sales in Q1.

D.R. Horton (DHI) Rides on Inorganic Moves & Land Investment

Per the Zacks analyst, D.R. Horton is gaining from acquiring homebuilding companies in preferred markets and also consistently investing in lots and land.

New Downgrades

Weaker Server Demand Hurts Hewlett Packard's (HPE) Prospects

Weaker server demand resulting from macroeconomic uncertainties and supply constraints due to the coronavirus-led global lockdown is expected to hurt Hewlett Packard Enterprise's growth prospects.

Elevated Expenses Likely to Mar Proofpoint's (PFPT) Margins

Per the Zacks analyst, increased investment toward enhancing sales & marketing capabilities and higher sales incentives are likely to dampen Proofpoint's margins.

Share Issuance, Asset Sales to Hurt Macerich (MAC) Earnings

Per the Zacks analyst, while additional share issuance and non-core asset sales will boost Macerich's liquidity, it might dilute near-term earnings. Also, retail bankruptcies are hindering occupancy.

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
UBS Group AG (UBS) : Free Stock Analysis Report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
CSX Corporation (CSX) : Free Stock Analysis Report
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