Monday, February 14, 2022
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 Alphabet Inc. (GOOGL), Texas Instruments Inc. (TXN), and Linde plc (LIN). 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 Alphabet have outperformed the S&P 500 over the past year (+28.2% vs. +13.7%). The Zacks analyst believes that Alphabet’s dominant search market, an expanding cloud footprint and strengthening presence in the smart home market are the major catalysts for growth.
Solid momentum across search, advertising, cloud and YouTube businesses have also been supporting revenues. Major updates in its search segment are enhancing the search results and Google’s mobile search is constantly gaining solid traction. Focus on artificial intelligence and the home automation space is likely to business growth in the long term. Growing litigation issues remain a concern for Alphabet, though.
(You can read the full research report on Alphabet here >>>)
Texas Instruments shares have lost -12.3% in the past six months against the Zacks General Semiconductor industry’s rise of +6.3%, although things seem to be improving. The Zacks analyst believes that Texas Instruments continues to benefit from strong demand across high-margin auto and industrial verticals.
Solid investments in new growth avenues remain a tailwind. TXN’s portfolio of long-lived products and efficient manufacturing strategies are other positives. Steadily rising demand for electronic components has also been supporting revenues. Pandemic-related uncertainties continue to stress margins, though.
(You can read the full research report on Texas Instruments here >>>)
Shares of Linde have lost -11.5% in the last three months against the Zacks Oil and Gas Field Services industry’s gain of +0.5%. Increasing cost of sales have been hurting the Linde’s bottom line. LIN has also been paying a lower dividend yield than the industry over the past two years.
The Zacks analyst, however, believes that with improving industrial productions worldwide, Linde is set to gain from recovering industrial gas demand. LIN recently reported strong fourth-quarter results owing to increased prices and volumes from electronics, energy and chemicals end markets.
(You can read the full research report on Linde here >>>)
Other noteworthy reports we are featuring today include Deere & Co. (DE), The TJX Companies, Inc. (TJX) and MetLife, Inc. (MET).
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
Alphabet (GOOGL) Benefits From Cloud & Search Initiatives
Automotive & Industrial Growth Aids Texas Instruments (TXN)
Linde (LIN) Banks on its Secured Project Backlog of $13B
Deere (DE) Rides on Farm Equipment Demand Amid Higher Costs
Per the Zacks analyst, Deere will gain from increased farm equipment demand driven by higher commodity prices despite escalating material and logistic costs.
The TJX Companies (TJX) Gains on Solid HomeGoods Category
Per the Zacks analyst, The TJX Companies is gaining on solid HomeGoods unit. During fiscal third-quarter open-only comp-store sales rose 34% in the HomeGoods (U.S.) unit from fiscal 2020's level.
MetLife's (MET) Cost-Cut Efforts & Strategic Buyouts Aid
Per the Zacks analyst, MetLife's cost-control measures are driving margins, while acquisitions are expanding its portfolio.
International Growth Aids Walgreens (WBA) Amid Margin Woes
The Zacks analyst is impressed with Walgreens' strong growth in the International segment aided by the company's joint venture in Germany.
Cost Management & High Margin Assets Aid Devon Energy (DVN)
Per the Zacks analyst, Devon's strong production from high margins assets and efficient cost management will drive its performance over the long run.
Robust Digital Sales Aid Yum! Brands (YUM), Debt High
Per the Zacks analyst, Yum! Brands benefit from robust digitalization. During fourth-quarter 2021, the company reported digital sales of over $6 billion.
Dividends & Buybacks Save Old Dominion (ODFL), Costs Sting
The Zacks analyst is impressed with the company's efforts to reward its shareholders. Escalated operating costs are, however, concerning.
Strong Demand Levels & Investment to Drive AGCO (AGCO)
The Zacks analyst expects AGCO to gain from improving global farm equipment demand and focus on investments in precision farming technology, product innovations, smart-farming solutions.
Pilgrim's Pride (PPC) Gains From Robust U.S. Operations
Per the Zacks analyst, Pilgrim's Pride is gaining from higher sales in U.S. Operations for a while. During the fourth-quarter sales in the region surged 27.9% year over year.
Puma Biotech's Nerlynx Drives Growth, Lacks Strong Pipeline
While Puma Biotech's sole marketed drug, Nerlynx, holds potential, the Zacks analyst feels concerned since the company lacks any other strong candidates in its pipeline.
Margin Pressure and Concentration Risk Hurt BNY Mellon (BK)
Per the Zacks analyst, BNY Mellon's concentration risk arising from significant dependence on fee-based revenues and margin pressure are concerns.
High Costs Hurt Moelis & Company (MC), Global Reach to Aid
Per the Zacks analyst, steadily rising operating expenses as Moelis & Company continues with its hiring spree is worrisome. However, global footprints and solid M&A activities offer some support.
Billing Inconsistencies, Debt Burden Deter Bandwidth (BAND)
Per the Zacks analyst, Bandwidth is likely to be weighed down by high debt burden and billing inconsistencies in the complex pricing and billing systems that are mostly developed by third parties.
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
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
MetLife, Inc. (MET) : Free Stock Analysis Report
Linde plc (LIN) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research