The Zacks Analyst Blog Highlights: TJX, Deere, Mitsubishi, Target and TE

For Immediate Release

Chicago, IL – May 25, 2018 – 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 TJX Companies TJX, Deere DE, Mitsubishi UFJ Financial MUFG, Target TGT and TE Connectivity TEL.

Here are highlights from Thursday’s Analyst Blog:

Top Analyst Reports for TJX Companies, Deere and Mitsubishi UFJ

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 TJX Companies, Deere and Mitsubishi UFJ Financial. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

TJX Companies' shares have outperformed the Zacks Discount Stores industry over the last six months, gaining +23.9% vs a +16% increase, courtesy of its impressive comps record. Comps have been gaining from continued rise in consumer traffic and strength in merchandising policies.

The Zacks analyst thinks that these factors, along with TJX Companies’ off-price model, strategic store locations, impressive brands and fashion products have been driving its stores and online performance. This was visible in the company’s first-quarter fiscal 2019 results, wherein both top and bottom lines grew year over year and all major units reported comps growth.

The company remains focused on its sales-driving efforts, which are expected to help it witness further market share gains. These factors and a favorable inventory position encouraged management to raise fiscal 2019 earnings view. However, the company has long been witnessing high wage costs. Unfortunately, management expects this to linger and hurt earnings to some extent in fiscal 2019.

Shares of Deere have surged +27.9% over the last year, outperforming the Zacks Farm Equipment industry, which has gained +24.2% over the same period. Deere’s adjusted earnings increased 26% year over year in second-quarter fiscal 2018 but came in under expectations.

The top line grew 34% year over year and came in line with expectations. Deere projects total equipment sales growth at around 30% for fiscal 2018 and sales to be up 35% in third-quarter fiscal 2018, both compared with the year-ago periods. It expects that the Wirtgen acquisition will contribute about 12% to net sales for the fiscal and about 18% for the fiscal third quarter.

Further, Wirtgen will add $100 million in operating profit in the fiscal. The Zacks analyst thinks Deere will gain from rising replacement demand, strength in Brazil, higher housing starts, improving oil and gas sector and ease in tariffs. However, Deere’s results will be affected by weakness in agriculture demand and the U.S. tax reform. Elevated expenses will also thwart its results.

Buy-ranked Mitsubishi UFJ Financial's shares have declined -7.3% in the last six months, underperforming the Zacks Foreign Banks industry which has declined -3.1% over the same period. The company’s fiscal 2017 results reflect a strong capital position and decline in credit costs, partially offset by higher expenses.

Though the negative interest rates in Japan and global growth concerns along with strict regulations are headwinds, the Zacks analyst thinks strong capital ratios and organic growth are likely to drive the company’s bottom-line growth. Also, the company’s prospects look encouraging, as it focuses on several strategies under its medium-term business plan and global expansion.

Other noteworthy reports we are featuring today include Target  and TE Connectivity.

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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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TE Connectivity Ltd. (TEL) : Free Stock Analysis Report
 
Deere & Company (DE) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
 
Mitsubishi UFJ Financial Group, Inc. (MUFG) : Free Stock Analysis Report
 
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