Top Stock Reports for Texas Instruments, Statoil & Comcast

Monday, February 26, 2018

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 (TXN), Statoil (STO) and Comcast (CMCSA). 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 >>>

Buy-rated Texas Instruments’ shares have gained +9.5% over the last three months, outperforming the Zacks General Semiconductor industry which has gained +9.2% over the same period. The Zacks analyst likes its prudent R&D investments in several high margin, high-growth areas of the analog and embedded processing markets. This is gradually increasing its exposure to industrial and automotive markets and dollar content at customers, while reducing exposure to volatile consumer/computing markets.

Margins continue to expand on secular strength in the auto and industrial markets and manufacturing efficiencies that include growing 300-millimeter Analog output. Continuous dividend hikes are a big positive. However, increasing competition, unfavorable currency effect and a high debt load remain concerns.

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

Shares of Strong Buy-rated Statoil are up +32.7% over the last one year, outperforming the Zacks International Integrated Oil industry (up +9.3%). Statoil is one of the major carbon-efficient producers of oil and natural gas in the world. In fact, the company’s production, especially in the Norwegian Continental Shelf, emits the lowest carbon in the industry. 

During the fourth-quarter, Statoil’s earnings beat expectations and revenues increased annually. The growth can be attributed to higher equity and entitlement production along with increased realized liquids prices. The company’s Board of directors has also proposed to increase dividend for the fourth quarter by 4.5%.

The Zacks analyst expects growth from new upstream projects in various prospective fields of Norway. The company’s strong cost-control efforts amid weak oil and gas pricing environment are a big positive. During fourth-quarter 2017, Statoil managed to lower its exploration expenses by 55%.

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

Comcast’s shares have outperformed the Zacks Cable Television industry in the last three months, gaining +11.3% vs. +6.3%. Comcast has started the nationwide rollout of the DOCSIS 3.1 technology, with its latest xFi Advanced Gateway. Moreover, Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand, with plans to include YouTube in its X1 video platform.

Additionally, Comcast is venturing into residential solar programs with Sunrun. It is also working towards 5G network deployment and expanding its theme park business. However, the Zacks analyst remains concerned about the company’s operations in a saturated and competitive multi-channel U.S. video market.

Comcast lost 33,000 video customers and 13,000 voice customers in the fourth quarter of 2017, due to cord-cutting and stiff competition. Additionally, the company's high debt levels and consolidation-related woes are potential hazards.

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

Other noteworthy reports we are featuring today include Zoetis (ZTS), Lam Research (LRCX) and HP (HPQ).

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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

Texas Instruments (TXN) Benefits From Strong Auto Demand

Statoil (STO) to Benefit from Norwegian Upstream Projects

DOCSIS 3.1 Rollout, Mobile Venture to Boost Comcast (CMCSA)

Featured Reports

Zoetis (ZTS) Poised to Grow On Apoquel & Cytopoint Strength

Per the Zacks analyst, Zoetis' industry leading portfolio with products like Apoquel and Cytopoint, Simparica, and several other new companion animal products will drive further growth in 2018.

Genuine Parts (GPC) to Grow in Europe via AAG's Acquisition

Per the Zacks analyst, acquisition of Europe's Alliance Automotive Group (AAG) will aid Genuine Parts to spread out its business through the former's large chain of stores in the continent.

Omnicom (OMC) Rides on Digital Capabilities to Defy Rivals

Per the Zacks analyst, higher demand for media services, speedy growth of technologies and massive proliferation of channels are likely to drive Omnicom's growth despite stiff competitive pressures.

Intermodal Volume Growth & Dividends Buoy J.B. Hunt (JBHT)

The Zacks analyst is impressed by the company's efforts to reward shareholders.

Lam Research (LRCX) Benefits from Memory Segment Growth

The Zacks analyst believes that Lam's exposure to memory manufacturers (a segment with multi-year growth prospects), and strengths in logic and foundry segments will continue to drive its top line.

Markel (MKL) Poised to Grow on Strong Underwriting

Per the Zacks analyst, Markel is poised to deliver solid results banking on the strength of its underwriting, investment and Markel Ventures operations.

HP's (HPQ) Product & Marketing Initiatives Drive Growth

Per the Zacks analyst, HP's sustained focus on innovation, pricing, marketing and sales activities are driving PC and printing business growth.

New Upgrades

IDR Simplification Agreement Buoys HollyFrontier (HFC)

The Zacks analyst believes that HollyFrontier's incentive distribution rights (IDR) simplification deal with its partnership will help it to manage operations efficiently and improve payout.

Verisk (VRSK) Aided by Deep Domain Knowhow & Analytics Skills

Per the Zacks analyst, Verisk continuously seeks to expand its portfolio by leveraging its deep knowledge and embedded position to develop new, proprietary data sets and predictive analytics.

Solid Non-Residential Construction Demand Drives EMCOR (EME)

Per the Zacks analyst, robust traction of U.S. Mechanical Construction segment, coupled with high project activity in health care, hospitality & commercial sectors will lend momentum to EMCOR.

New Downgrades

Emergent (EBS) Overdependent on BioThrax, Competition Stiff

Per the Zacks analyst, since Emergent derives the majority of its revenues from BioThrax, any production hiccup or competition from other biodefense products could hamper the company's growth.

Achillion's (ACHN) Early Stage Pipeline Dependence a Concern

Per the Zacks analyst, Achillion's Factor D pipeline candidates are in an early stage of clinical development, which is a concern as the company has no approved products.

Waning Comps Likely to Hurt Rent-A-Center's (RCII) Top-Line

Per the Zacks analyst, soft comparable sales performance remains a concern for Rent-A-Center. The company has been witnessing dismal comps in the Core U.S. and Mexico segments for quite some time now.

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Zoetis Inc. (ZTS) : Free Stock Analysis Report
 
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
 
Statoil ASA (STO) : Free Stock Analysis Report
 
Lam Research Corporation (LRCX) : Free Stock Analysis Report
 
HP Inc. (HPQ) : Free Stock Analysis Report
 
Comcast Corporation (CMCSA) : Free Stock Analysis Report
 
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