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Top Stock Reports for Texas Instruments, Enbridge & Fiserv

Wednesday, February 1, 2023

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), Enbridge Inc. (ENB) and Fiserv, Inc. (FISV). 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 underperformed the Zacks Semiconductor - General industry over the past year (-5.7% vs. -23.4%). The company is facing sluggishness in the Analog segment remains a concern. Further, weakening momentum across personal electronics and industrial end-markets is a negative. Additionally, pandemic-led supply-chain disruptions and imposition of new export regulations are headwinds.

However, Texas Instruments fourth quarter results were driven by solid momentum across its Embedded Processing segment. Growing demand for embedded technologies across the automotive and industrial markets contributed well.

Additionally, continued rebound in the automotive market was a tailwind. We note that the company’s growing investments in new growth avenues and competitive advantages remain tailwinds. Further, its portfolio of long-lived products and efficient manufacturing strategies are other positives.

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

Shares of Enbridge have underperformed the Zacks Oil and Gas - Production and Pipelines industry over the past year (-4.9% vs. +1.7%). The company has significant debt exposure since there has been a weakness in its operations. Also, it has mostly been yielding lower dividends than the industry over the past year.  As such, the stock warrants a cautious stance.

However, Enbridge has the longest and most sophisticated oil and liquids pipeline system in the world, which spreads across 17,809 miles. Hence, a significant portion of the midstream operator’s earnings is generated from transportation operations, driven by a string of long-term contracts.

Enbridge increased its annualized common share dividend to C$3.55 per share, thereby marking a dividend hike for 28 straight years. The leading midstream company expects to put more than C$13 billion growth projects into service in 2024 and beyond. This is expected to generate significant EBITDA growth in the coming years.

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

Shares of Fiserv have declined -1.5% over the past year against the Zacks Financial Transaction Services industry’s decline of -10.7%. The company is facing stiff competition which makes it a difficult task for strong and long-term client relationships. Acquisition of a large number of companies results in some integration risk. Fiserv has more long-term debt outstanding than cash.

However, Fiserv enjoys a dominant position in the financial and payments solutions business on the back of broad and diverse customer base, and continued technology upgrades. FISV's diversified product portfolio helps attract a steady flow of customers.

Acquisitions help expand its product portfolio, enhance offerings, boost its market share and customer base. The company has been consistently rewarding shareholders through share buybacks. These initiatives instill investors’ confidence, positively impacting earnings per share.

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

Other noteworthy reports we are featuring today include UBS Group AG (UBS), State Street Corp. (STT) and VeriSign, Inc. (VRSN).

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

Embedded Processing Strength Aids Texas Instruments (TXN)

Enbridge (ENB) Banks on C$13B Midstream Growth Projects

Fiserv (FISV) to Benefit From Finxact Acquisition, Debt High

Featured Reports

VeriSign (VRSN) Gains on Higher Demand for Domain Names
Per the Zacks analyst, VeriSign has been gaining from growth in ".com" and ".net" domain name registrations. However, surging expenses related to cybersecurity and infrastructure spending is a concern

E-Commerce Demand Aid Packaging Corporation (PKG), Costs Ail
Per the Zacks analyst, Packaging Corporation will gain on packaging demand fueled by e-commerce activities which will help negate the impact of high freight and operating costs.

Robust Industrial Segment Aids Graco (GGG), High Cost Ails
Per the Zacks analyst, solid traction of Graco's Industrial segment, led by robust product portfolio of finishing systems should drive its growth. However, high operating costs are concerning.

QIAGEN (QGEN) Banks on Strategic Alliances Amid Forex Woes
The Zacks analyst is optimistic about Verogen buyout which fortifies QIAGEN's position in the fast-growing field of Human ID and forensics. Yet, adverse currency movement continues to pose concerns.

Clean Assets, North America Focus Aid Clearway Energy (CWEN)
Per the Zacks analyst Clearway Energy is gaining by generating electricity from renewable energy sources to meet rising demand. Also, focus on domestic market saves it from currency risks.

Intellia's (NTLA) Pipeline Promising, Competition Stiff
Per the Zacks analyst, Intellia's gene-edited therapy promises potential. However, it is several years away from commercialization and will face stiff competition upon approval.

Credit Sales, Receivables Growth Drive Bread Financial (BFH)
Per the Zacks analyst, Bread Financial is set to grow on credit sales growth driven by existing partners, as well as new product and brand partner additions. Yet, high expenses weighing on margin ail.

New Upgrades

Efficiency Initiatives, Acquisitions Support UBS Group (UBS)
Per the Zacks analyst, UBS Group's solid capital position and efficiency initiatives will aid profits. The company is focused on expansion strategies, which will likely aid growth in the long run.

Higher Rates, Servicing Wins Aid State Street (STT) Revenues
Per the Zacks analyst, Higher interest rates, solid business servicing wins, strategic buyouts, global reach and efforts to technologically upgrade operations will support State Street's revenues.

Solid Global Project Pipeline Aid ReneSola's (SOL) Growth
Per the Zacks analyst, ReneSola's global project pipeline and a steady flow of contracts from domestic as well as international customers tend to boost its long-term growth trajectory.

New Downgrades

Pilgrim's Pride (PPC) Grapples With Increased Cost of Sales
Per the Zacks analyst, increased cost of sales is a concern for Pilgrim's Pride. In third quarter, the company's cost of sales increased to $3,972 million from $3,455.7 million in the year-ago quarter

Yelp (YELP) Hurt by Rising Competition, Falling Delivery
Per the Zacks analyst, competition from Google and Facebook is a major threat to Yelp. Declining food take-out and delivery order volumes due to reopening of economies is hurting transaction revenues.

Inflation & Supply Chain Woes Hurt Louisiana's (LPX) Growth
As per the Zacks analyst, increased cost, supply chain woes and housing market's cyclical nature affects Louisiana's (LPX) growth potential.

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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report

UBS Group AG (UBS) : Free Stock Analysis Report

State Street Corporation (STT) : Free Stock Analysis Report

VeriSign, Inc. (VRSN) : Free Stock Analysis Report

Fiserv, Inc. (FISV) : Free Stock Analysis Report

Enbridge Inc (ENB) : Free Stock Analysis Report

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Zacks Investment Research