The Zacks Analyst Blog Highlights: Medtronic, TJX, Deere, Incyte and Netapp
For Immediate Release
Chicago, IL –May 28, 2019 – 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: Medtronic MDT, TJX Companies TJX, Deere DE, Incyte INCY and Netapp NTAP.
Here are highlights from Friday’s Analyst Blog:
Top Stock Reports for Medtronic, TJX Companies and Deere
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 Medtronic, TJX Companies and Deere. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Medtronic’s shares have outperformed the Zacks Medical Products industry in the past year, gaining +6.2% vs. +1.2%. Medtronic exited fiscal 2019 on a promising note with better-than-expected fourth-quarter numbers. Barring the Diabetes group, all major business groups contributed to solid top-line growth at CER.
The Zacks analyst thinks that within RTG, the launch of the Mazor X Stealth navigated robotic system is off to a strong start. Diabetes group, although registered a dull quarter this time, the company expects this business to reaccelerate in the first quarter and be accretive to total company growth in fiscal 2020. Within CVG, despite ongoing challenges, multiple product lines showed exceptional strength in the quarter.
The 2020 guidance also looks promising. On the flip side, the declining CRHF revenue raises concern for Medtronic. Escalating costs persistently put pressure on gross margins.
Shares of Buy-ranked TJX Companies’ have underperformed the Zacks Discount Stores industry over the past three months, gaining +5.6% vs. a +7.1% increase. However, the Zacks analyst thinks the company is likely to put up an above-average performance in the near term.
The company is set to benefit from robust comps, which have been gaining from continued rise in consumer traffic and strong merchandising policies. These factors along with TJX Companies’ off-price model, strategic store locations and impressive brands have been driving its store and online performance. This was visible in the company’s first-quarter fiscal 2020 results, wherein customer traffic rose for the 19th straight time.
Management is encouraged about witnessing continued growth, evident from its raised earnings view. Also, the company’s shareholder-friendly moves reflect its solid financial status. However, the company has been witnessing high wage costs, which along with elevated freight costs are likely to hit EPS growth in fiscal 2020. Also, volatile currency movements pose threats.
Deere’s shares have lost -8.5% year to date, underperforming the Zacks Farm Equipment industry, which has declined -6.5% over the same period. Deere reported year-over-year improvement in both adjusted earnings per share and revenues in second-quarter 2019. While the top line beat expectations, the bottom line missed.
For fiscal 2019, Deere anticipates net sales to increase about 5% year over year and net income at $3.3 billion. The Zacks analyst thinks concerns over the U.S-China trade war, lower commodity prices and delayed planting season in North America led farmers to become cautious about their equipment purchases.
However, the recently announced $16 billion aid program for American farmers impacted by the trade war is likely to boost agricultural equipment sales. Improving construction markets, the Wirtgen acquisition and introduction of advanced technologies in its products will also aid growth. However, raw material cost inflation, elevated expenses and unfavorable foreign currency impact will hurt results.
Other noteworthy reports we are featuring today include Incyte and Netapp.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Zacks Investment Research
800-767-3771 ext. 9339
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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Click to get this free report
NetApp, Inc. (NTAP): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Medtronic PLC (MDT): Free Stock Analysis Report
Incyte Corporation (INCY): Free Stock Analysis Report
The TJX Companies, Inc. (TJX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.