Top Analyst Reports for TJX Companies, Deere & Mitsubishi UFJ Financial

Thursday, May 24, 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 TJX Companies (TJX), Deere (DE) and Mitsubishi UFJ Financial (MUFG). 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 >>>

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.

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

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.

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

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.

(You can read the full research report on Mitsubishi UFJ Financial here >>>).

Other noteworthy reports we are featuring today include Suncor (SU), Target (TGT) and TE Connectivity (TEL).

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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

Solid Comps to Fuel TJX Companies (TJX), Wage Costs a Worry

Deere (DE) Rides on Wirtgen Buyout, Soaring Expenses Ail

Loan Growth Supports Mitsubishi (MUFG), Capital Level Solid

Featured Reports

Grid Investments Aid PG&E Corp (PCG), Catastrophe Losses Ail

Per the Zacks analyst, PG&E Corp continues to make substantial investments to improve its system safety and reliability.

TE Connectivity (TEL) Rides on Strong Solutions Portfolio

Per the Zacks analyst, Te Connectivity's top-line growth continues to benefit from robust performance of Transportation and Industrial Solutions.

Groupon (GRPN) Rides on Strategic Deals & Product Rollouts

Per the Zacks analyst, Groupon's partnership with Grubhub and ParkWhiz along with ongoing brand awareness programs will aid revenues.

Target's (TGT) Omnichannel & Restock Program to Boost Sales

Per the Zacks analyst, Target's omnichannel efforts and flexible format stores bode well.

AptarGroup (ATR) Bets on Transformation Plan, Input Costs Ail

The Zacks analyst appreciates AptarGroup's business-transformation plan which will drive sales growth and generate cost savings in the long run.

Tiffany's (TIF) Omnichannel & Store Expansion to Boost Sales

Per the Zacks analyst, Tiffany's omni-channel platform and tapping of new markets will aid top-line performance.

International Expansion to Boost Ralph Lauren's (RL) Sales

Per the Zacks analyst, Ralph Lauren is expanding in underpenetrated markets with its highly productive new small-format stores.

New Upgrades

Hewlett Packard's (HPE) High Margin Business Drives Growth

The Zacks analyst believes that Hewlett Packard's focus on high margin businesses such as IoT, server, storage and Big Data is driving top-line growth.

PerkinElmer (PKI) Gains Ground on Strong DAS Segment

Strong performance in Distribution & Analytical unit favors PerkinElmer. The Zacks analyst is bullish about the company's strong international position.

Suncor (SU) Rides on Robust Ramp-Up at Fort Hills

The Zacks analyst ppreciates Suncor's buyout of additional stake at Fort Hills, which is likely to enhance its near-term production volumes and cashflow generation.

New Downgrades

Fitbit (FIT) Hurt by Weak Demand for its Wearable Products

Per the Zacks analyst, increasing competition from Apple and Xiaomi in the wearables space is negatively impacting the demand for Fitbit's health and fitness trackers.

Stringent Regulatory Norms Weigh on Waste Connections (WCN)

The Zacks analyst is skeptical about the impact of strict environmental, health & safety laws on Waste Connections' operations. An expert management team & efficient operating strategy are positives.

High Expenses May Impact Pool Corporation's (POOL) Margins

Per the Zacks analyst, Pool Corporation is grappling with increased expenses from labor, delivery and technological initiatives, which in turn, might weigh on company's margin.

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