Top Stock Reports for Boeing, Texas Instruments & Bristol-Myers

Tuesday, March 27, 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 Boeing (BA), Texas Instruments (TXN) and Bristol-Myers (BMY). 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 >>>

Strong Buy-rated Boeing’s shares have surged +86.8% in the last year, outperforming the Zacks Aerospace & Defense sector, which gained +48.4% during the same time period. The Zacks analyst stresses that Boeing is the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries. In this regard, the company’s 20-year market outlook forecasts commercial jetliner demand to increase by 3.6%.

Boeing expects single-aisle jets to be the major driver behind this demand growth. Meanwhile, Middle East has emerged as another promising market for Boeing. Yet, this aerospace company continues to face challenges from stiff competition.

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

Shares of Buy-rated Texas Instruments have gained +32.3% in the last year, underperforming the Zacks General Semiconductor industry which has gained +62.1% over the same period. The Zacks analyst likes the fact that the company continues to prudently invest its R&D dollars 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 hike is 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 >>>).

Bristol-Myers’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry in the last one year, gaining +12.8% vs. +4.2%. Bristol-Myers’ blockbuster drug Opdivo continues to perform well along with Eliquis. The guidance for 2018 was encouraging as well. The Zacks analyst likes Bristol-Myers’ efforts to develop its pipeline, especially Opdivo. Several label expansion applications for Opdivo are under review in the United States and Europe. Potential approval will boost the prospects of these drugs.

The positive results from the Checkmate-227 study for first-line treatment of lung cancer has already boosted prospects of approval. However, pricing concerns, stiff competition in the HCV and immuno-oncology space are expected to remain an overhang on the company’s shares. Yervoy’s sales are expected to be under pressure due to the adoption of Opdivo in adjuvant melanoma.

(You can read the full research report on Bristol-Myers here >>>).

Other noteworthy reports we are featuring today include Estee Lauder (EL), Intuitive Surgical (ISRG) and Travelers (TRV).

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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 Jet Orders & Strong Cash Inflows Drive Boeing (BA)

Texas Instruments (TXN) Benefits From Strong Auto Growth

Opdivo Boosts Bristol-Myers (BMY) Amid Strong Competition

Featured Reports

FTI Consulting (FCN) Rides on Key Arbitration Knowhow

Per the Zacks analyst, FTI Consulting's unique capabilities of bringing together diverse fields under a single umbrella make it a perfect fit for clients dealing with international arbitration issues.

Buyouts to Boost Estee Lauder (EL), Soft Margins a Worry

Per the Zacks analyst, Estee Lauder is set to gain from BECCA and Too Faced buyouts, which are likely to contribute 2% to fiscal 2018 sales growth. However, gross margin has been weak for over a year.

Travelers (TRV) Continues to Gain from Rising Premiums

Per the Zacks analyst, consistent improvement in premiums will continue to boost Travelers' bottom line, thereby resulting in the company's overall growth.

Strategic Buyouts, Loan Growth Support Raymond James (RJF)

Per the Zacks analyst, Raymond James is poised to grow through acquisitions, reflecting its strong balance sheet position.

da Vinci System Aids Intuitive (ISRG), Forex Woes Remain

The Zacks analyst believes Intuitive Surgical's da Vinci surgical-robotic system will be the key growth driver, providing it with a competitive edge in MedTech.

Higher Nitrogen Demand, Pricing Drive CF Industries (CF)

The Zacks analyst thinks the company is likely to benefit from higher nitrogen demand from major markets in 2018.

Diversified Services Unit Catalyst for Fluor's (FLR) Growth

Per the Zacks analyst, solid performance of Fluor's Diversified Services business, aided by rise in demand for projects to support power & energy industries, continues to lend momentum to the company.

New Upgrades

KB Home's (KBH) Returns-Focused Growth Plan to Spur Growth

The Zacks analyst stresses that, with the Returns-Focused Growth Plan in place, revenues and operating margin are expected to significantly improve in 2018 and beyond

McDermott's (MDR) Chicago Bridge Buy Bolsters Onshore Focus

The Zacks analyst believes that the $6 billion Chicago Bridge acquisition will add onshore services to McDermott's offshore-focused portfolio, apart from bringing in scale benefits and cost synergies.

Focus on Reorganization Activities to Benefit Pentair (PNR)

The Zacks analyst thinks Pentair's focus on reorganization which includes the separation of Water and Electrical businesses will drive growth. Improvement in capacity investments will aid results.

New Downgrades

Buckeye's (BPL) Rising Debts, Reliance on Limited Buyers Worrying

The Zacks analyst believes Buckeye Partners rising debt levels amid increasing interest rates and fear of losing any of its three buyers accounting for 59% storage revenue are concerns.

High Debts & Automotive Woes Hurt Norfolk Southern (NSC)

The Zacks analyst is concerned about its high debt levels. Weak performance of the company's automotive unit is also worrisome. Sluggish vehicle production in the U.S. is hurting automotive volumes.

Increasing Marketing Expenses Batters MercadoLibre (MELI)

Per the Zacks analyst MercadoLibre's consumer-centric approach is commendable. However, increasing investments on consumer acquisition and branding is negatively impacting margins.

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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
 
The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
 
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
 
The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
 
Bristol-Myers Squibb Company (BMY) : Free Stock Analysis Report
 
The Boeing Company (BA) : Free Stock Analysis Report
 
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