Tuesday, April 11, 2023

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 Inc. (TXN), TotalEnergies SE (TTE) and Raytheon Technologies Corp. (RTX). 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 >>>

Shares of Texas Instruments have gained +6.7% over the past year against the Zacks Semiconductor - General industry’s gain of +12.8%. The company is benefiting from growing demand for embedded technologies across the automotive and industrial markets. Moreover, a solid rebound in the automotive market remains a positive.

Further, the strengthening demand in industrial, communication equipment and enterprise systems markets is a tailwind. Notably, solid investments in new growth avenues and competitive advantages remain tailwinds. Further, its portfolio of long-lived products and efficient manufacturing strategies are other positives.

However, pandemic-led supply-chain disruptions and imposition of new export regulations are headwinds. Further, weakness in the Analog segment of the company is a concern. Additonally, softness in the personal electronics end-market remains an overhang.

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

Shares of TotalEnergies have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past year (+33.5% vs. +17.4%). The company continues to benefit from startups, well-spread LNG assets and an expanding upstream portfolio that has exposure to fast-growing hydrocarbon-producing regions. Lower exposure to mature assets acts as a tailwind.

TTE streamlines its portfolio through acquisitions, partnerships and divestitures. TTE has enough liquidity to meet its near-term debt obligations. TTE is making investments to expand the renewable operation and aims to achieve net-zero emissions by 2050.

However, TTE’s production is impacted by the security-related production cuts in some regions. TTE remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. A natural decline in production and TTE’s withdrawal from Russia might affect profitability.

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

Raytheon Technologies’ shares have outperformed the Zacks Aerospace - Defense Equipment industry over the past six months (+21.4% vs. +18.1%). The company continues to receive ample orders for its combat-proven defense products and expects both domestic and international program growth to remain robust for its defense business.

This should boost the revenue generation prospects for its defense business. A steady recovery in commercial air traffic continues to boost commercial OEM as well as commercial aftermarket sales for it. The stock holds a solid solvency position.

Yet, economic sanctions imposed by governments in response to Russia’s invasion of Ukraine might hurt Raytheon. A comparative analysis of its trailing 12-month Price/Book ratio indicates a relatively gloomy picture, which may concern investors’. The appreciating U.S. dollar has been burdening airlines, which may hurt the stock.

(You can read the full research report on Raytheon Technologies here >>>)

Other noteworthy reports we are featuring today include Morgan Stanley (MS), Sony Group Corp. (SONY) and The Progressive Corp. (PGR).

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>>>