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The Zacks Analyst Blog Highlights: IBM, Duke Energy, General Dynamics, Hewlett Packard and Rockwell Automation

Zacks Equity Research
A look at two names that are seeing some timely moves.

For Immediate Release

Chicago, IL – February 27, 2019 – 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: IBM IBM, Duke Energy DUK and General Dynamics GD, Hewlett Packard HPE and Rockwell Automation ROK.

Here are highlights from Tuesday’s Analyst Blog:

Top Stock Reports for IBM, Duke Energy and General Dynamics

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 IBM, Duke Energy and General Dynamics. 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 >>>

IBM’s shares have outperformed the broader market on a year-to-date basis, increasing 22.7% vs the S&P 500’s 11.5% gain. IBM provides advanced information technology solutions, including computer systems, software, storage systems and microelectronics.

The Zacks analyst thinks IBM’s improving position in the hosted cloud, security and analytics bodes well for investors. RedHat acquisition aimed at enhancing hybrid cloud platform is likely to pave the way for IBM's growth prospects. However, softness in Systems revenues and technology & cloud platforms remain a concern.

Stiff competition does not bode well for Storage hardware segment. Strategic imperatives will take some more time to report meaningful growth and offset weakness in the traditional business. IBM’s ongoing heavily time-consuming business model transition to cloud is a headwind. Additionally, ballooning debt levels have been troubling IBM over time.

Shares of Duke Energy have outperformed the S&P 500 in the past six months, gaining 11% vs -3.5%. Duke Energy ended the fourth quarter of 2018 on a mixed note. While the company’s earnings missed expectations, revenues surpassed the same.

The company invests heavily in infrastructure and expansion projects. It expects to invest about $37 billion in its overall growth projects in the 2019-2023 time frame. The Zacks analyst thinks this investment plan will drive earnings base growth in the company’s combined electric and gas businesses by approximately 6%, over the next five years.

However, the company faces challenges from severe weather conditions and natural calamities, which may result in breakdowns and damage to its infrastructure. Potential volatility in market prices of fuel, electricity and other renewable energy commodities could create operational risks.

General Dynamics’ shares have lost 11.3% in the past six months, underperforming the S&P 500's decrease of 3.5%. General Dynamics boasts a strong position in the U.S. defense space and overseas. The budgetary amendments, which were made last year, have been in favor of the company’s business line.

The Zacks analyst thinks that apart from solid demand for its varied defense products leading to organic growth, a notable acquisition strategy also adds significant value to General Dynamics’ inorganic growth. However, the company is susceptible to interest rate risk related to the issuance of debt.

A material rise in long-term interest rates is a major risk for capital intensive stocks like General Dynamics. With the current U.S. economy being in favor of the expanding interest rate, the credit market may not be too favorable for General Dynamics.

Other noteworthy reports we are featuring today include Hewlett Packard and Rockwell Automation.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Duke Energy Corporation (DUK) : Free Stock Analysis Report
 
International Business Machines Corporation (IBM) : Free Stock Analysis Report
 
Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report
 
General Dynamics Corporation (GD) : Free Stock Analysis Report
 
Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
 
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