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The Zacks Analyst Blog Highlights: Caterpillar, AT&T, Lockheed Martin and DuPont

Zacks Equity Research

For Immediate Release

Chicago, IL – April 28, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Caterpillar (NYSE: CAT – Free Report ), AT&T (NYSE: T – Free Report ), Lockheed Martin (NYSE: LMT – Free Report ) and DuPont (NYSE: DD – Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Thursday’s Analyst Blog:

Top Research Reports for Friday: CAT, T, LMT, DD

Today's Research Daily features new research reports on 17 major stocks, including Caterpillar (NYSE: CAT – Free Report ), AT&T (NYSE:T – Free Report ), Lockheed Martin (NYSE: LMT – Free Report ) and DuPont (NYSE:DD – Free Report ).

Strong Buy rated Caterpillar shares have gained +12.9% year-to-date, underperforming the Zacks Manufacturing - Construction and Mining industry which has increased +11.9% over the same period. In the first quarter, Caterpillar reported year-over-year improvement in both its top and bottom line for the first time in 10 quarters and beat expectations on both counts.

Also, Caterpillar hiked 2017 revenue guidance to the range of $38–$41 billion. In construction, Asia Pacific is showing promise while leading indicators of U.S. non-residential construction signal robust conditions ahead.

The Zacks analyst stresses that Caterpillar continues to cut down costs to counter weak demand and will gain immensely from Trump’s $1 trillion infrastructure spend plan. (You can read the full research report on Caterpillar here. )

Shares of AT&T shares have lost -3.7% over the three months, but have still fared better than the Zacks Wireless industry and competitor Verizon, which have declined -3.9% and -4.5% over the same period. AT&T posted mixed first quarter 2017 financial results where the top line lagged expectations while the bottom line came in line.

Additionally, AT&T added 2.7 million of net wireless subscribers. AT&T has decided to acquire Straight Path Communications to accumulate millimeter wave wireless spectrums for 5G wireless network. Also, AT&T plans to launch 5G Services in 2018 while its unlimited data plans have heated up the wireless industry.

The AT&T-Time Warner deal gained European Union’s approval but still awaits U.S. Justice Department’s nod. However, saturated wireless market, losses in access lines, operating expenses, regulatory norms and union issues are other near-term risks for AT&T. (You can read the full research report on AT&T here. )

Lockheed Martin shares have gained +16.1% over the past year, underperforming the aerospace/defense sector, which has gained +22.2% over the same period. Lockheed Martin’s earnings comfortably surpassed expectations while revenues fell short, even though they improved year over year. The defense major also raised its top-line guidance for 2017.

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.

Further, increased budget for the Department of Defense is expected to boost defense giants like Lockheed Martin. However, tough competition remains a major dampener for the stock. (You can read the full research report on Lockheed Martin here. )

Shares of DuPont have gained +22.9% over the one year vs. +16.8% gain for the Zacks Diversified Chemicals industry. DuPont’s adjusted earnings for first-quarter 2017 topped expectations, aided by its cost management actions and healthy demand for new products. Revenues also rose year over year and exceeded estimates.

DuPont is moving forward with its planned mega-merger with Dow Chemical, which is expected to create significant synergies. However, DuPont continues to face challenges in the agriculture business. Additionally, the company is exposed to currency headwinds and volatility in energy and raw material costs. (You can read the full research report on DuPont here. )

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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Caterpillar, Inc. (CAT): Free Stock Analysis Report
 
AT&T Inc. (T): Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
 
E.I. du Pont de Nemours and Company (DD): Free Stock Analysis Report
 
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