We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights Texas Instruments, Union Pacific, Vertex Pharmaceuticals, Tile Shop and Gencor
Read MoreHide Full Article
For Immediate Release
Chicago, IL – August 23, 2024 – 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: Texas Instruments Inc. (TXN - Free Report) , Union Pacific Corp. (UNP - Free Report) , Vertex Pharmaceuticals Inc. (VRTX - Free Report) , Tile Shop Holdings, Inc. (TTSH - Free Report) and Gencor Industries, Inc. (GENC - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Top Stock Reports for Texas Instruments, Union Pacific and Vertex
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., Union Pacific Corp. and Vertex Pharmaceuticals Inc., as well as two micro-cap stocks Tile Shop Holdings, Inc. and Gencor Industries, Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Shares of Texas Instruments have gained +28.6% over the year-to-date period against the Zacks Semiconductor - General industry’s gain of +113.1%. The company’s second-quarter results were hurt by widespread weakness in the industrial, and automotive markets. Sluggishness in its Analog, Embedded Processing and Other segments was a negative. Increasing manufacturing costs was a concern
Nevertheless, solid data center demand is boosting TXN's prospects in the enterprise systems market. Improving personal electronics and communication equipment markets are a plus. Texas Instruments’ growing investments in new growth avenues and competitive advantages are tailwinds.
Its deepening focus on manufacturing, advanced technology infusion, product portfolio expansion and consistent returns to shareholders, is another positive. However, overall weak demand environment and growing U.S.-China tensions remain concerns.
Union Pacific shares have outperformed the Zacks Transportation - Rail industry over the year-to-date period (+1.0% vs. -0.7%). The company is suffering big time as ecommerce sales have normalized and consumer markets have softened. Geopolitical uncertainty and high inflation continue to hurt consumer sentiment.
Reduced fuel surcharge revenues, too, are a concern. Due to these headwinds, volumes declined 1% year over year in 2023. Operating ratio (operating expenses as a percentage of revenues) deteriorated 220 basis points in 2023, mainly due to revenue woes. Given the soft freight market scenario, the revenue weakness is likely to persist.
To combat the revenue weakness, UNP is looking to cut costs. In the meantime, the railroad operator continues paying dividends. Management resumed buying back shares in the second quarter of 2024. Considering all these factors, investors are advised to wait for a better entry point.
Shares of Vertex Pharmaceuticals have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+19.0% vs. +2.6%). The company’s cystic franchise sales continue to grow, driven by higher sales of Trikafta/Kaftrio in younger age groups. Its one-shot gene therapy, Casgevy, was approved for two blood disorders in multiple regions, which diversified its commercial opportunity.
Vertex has additional near-term launches planned — suzetrigine in acute pain and vanza triple in CF. It is rapidly progressing its mid- and earlier-stage pipeline, with multiple milestones expected in the second half of the year. The Alpine acquisition has added povetacicept, which Vertex believes has a “pipeline in a product” potential.
However, Vertex’s dependence on just the CF franchise for revenues is a concern. CF sales are slightly slowing down.
Tile Shop’s shares have gained +5.2% over the past year against the Zacks Building Products - Retail industry’s gain of +15.2%. This microcap company with market capitalization of $265.22 million saw gross margin improved to 66% from 64.2% in the prior year, reflecting effective cost management and lower product costs and freight rates despite a 7.3% decline in net sales. The company's strong liquidity, with $25.3 million in cash and no debt, along with a $75 million credit line, provides financial stability.
E-commerce growth of more than 25% underscores successful digital investments, while the Superior private label brand bolstered professional customer engagement and enhanced market penetration.
However, a 6.9% decline in comparable store sales, rising selling, general and administrative (SG&A) expenses, and a 75.9% decline in net income to $1.2 million raise concerns about sustained profitability. Persistent margin erosion and declining cash flow may pressure the stock amid a tough retail environment.
Shares of Gencor Industries have outperformed the Zacks Manufacturing - Thermal Products industry over the past year (+38.3% vs. +22.0%). This microcap company with market capitalization of $272.92 million has strong demand and future revenue potential despite a recent revenue decline. The company's solid financial position, with $116.6 million in cash and no debt, enhances its strategic flexibility.
Benefits from the Infrastructure Investment and Jobs Act (IIJA) further support Gencor's market position. Yet, challenges persist, including an 8.3% third-quarter fiscal 2024 revenue decline due to shipment delays, decreasing gross margins and rising operating expenses.
While Gencor's robust backlog is a positive indicator, over-reliance could expose the company to risks if order fulfillment delays persist. Additionally, increased reliance on non-operating income and marketable securities introduces volatility, posing risks in uncertain economic conditions.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights Texas Instruments, Union Pacific, Vertex Pharmaceuticals, Tile Shop and Gencor
For Immediate Release
Chicago, IL – August 23, 2024 – 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: Texas Instruments Inc. (TXN - Free Report) , Union Pacific Corp. (UNP - Free Report) , Vertex Pharmaceuticals Inc. (VRTX - Free Report) , Tile Shop Holdings, Inc. (TTSH - Free Report) and Gencor Industries, Inc. (GENC - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Top Stock Reports for Texas Instruments, Union Pacific and Vertex
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., Union Pacific Corp. and Vertex Pharmaceuticals Inc., as well as two micro-cap stocks Tile Shop Holdings, Inc. and Gencor Industries, Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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 +28.6% over the year-to-date period against the Zacks Semiconductor - General industry’s gain of +113.1%. The company’s second-quarter results were hurt by widespread weakness in the industrial, and automotive markets. Sluggishness in its Analog, Embedded Processing and Other segments was a negative. Increasing manufacturing costs was a concern
Nevertheless, solid data center demand is boosting TXN's prospects in the enterprise systems market. Improving personal electronics and communication equipment markets are a plus. Texas Instruments’ growing investments in new growth avenues and competitive advantages are tailwinds.
Its deepening focus on manufacturing, advanced technology infusion, product portfolio expansion and consistent returns to shareholders, is another positive. However, overall weak demand environment and growing U.S.-China tensions remain concerns.
(You can read the full research report on Texas Instruments here >>>)
Union Pacific shares have outperformed the Zacks Transportation - Rail industry over the year-to-date period (+1.0% vs. -0.7%). The company is suffering big time as ecommerce sales have normalized and consumer markets have softened. Geopolitical uncertainty and high inflation continue to hurt consumer sentiment.
Reduced fuel surcharge revenues, too, are a concern. Due to these headwinds, volumes declined 1% year over year in 2023. Operating ratio (operating expenses as a percentage of revenues) deteriorated 220 basis points in 2023, mainly due to revenue woes. Given the soft freight market scenario, the revenue weakness is likely to persist.
To combat the revenue weakness, UNP is looking to cut costs. In the meantime, the railroad operator continues paying dividends. Management resumed buying back shares in the second quarter of 2024. Considering all these factors, investors are advised to wait for a better entry point.
(You can read the full research report on Union Pacific here >>>)
Shares of Vertex Pharmaceuticals have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+19.0% vs. +2.6%). The company’s cystic franchise sales continue to grow, driven by higher sales of Trikafta/Kaftrio in younger age groups. Its one-shot gene therapy, Casgevy, was approved for two blood disorders in multiple regions, which diversified its commercial opportunity.
Vertex has additional near-term launches planned — suzetrigine in acute pain and vanza triple in CF. It is rapidly progressing its mid- and earlier-stage pipeline, with multiple milestones expected in the second half of the year. The Alpine acquisition has added povetacicept, which Vertex believes has a “pipeline in a product” potential.
However, Vertex’s dependence on just the CF franchise for revenues is a concern. CF sales are slightly slowing down.
(You can read the full research report on Vertex Pharmaceuticals here >>>)
Tile Shop’s shares have gained +5.2% over the past year against the Zacks Building Products - Retail industry’s gain of +15.2%. This microcap company with market capitalization of $265.22 million saw gross margin improved to 66% from 64.2% in the prior year, reflecting effective cost management and lower product costs and freight rates despite a 7.3% decline in net sales. The company's strong liquidity, with $25.3 million in cash and no debt, along with a $75 million credit line, provides financial stability.
E-commerce growth of more than 25% underscores successful digital investments, while the Superior private label brand bolstered professional customer engagement and enhanced market penetration.
However, a 6.9% decline in comparable store sales, rising selling, general and administrative (SG&A) expenses, and a 75.9% decline in net income to $1.2 million raise concerns about sustained profitability. Persistent margin erosion and declining cash flow may pressure the stock amid a tough retail environment.
(You can read the full research report on Tile Shop here >>>)
Shares of Gencor Industries have outperformed the Zacks Manufacturing - Thermal Products industry over the past year (+38.3% vs. +22.0%). This microcap company with market capitalization of $272.92 million has strong demand and future revenue potential despite a recent revenue decline. The company's solid financial position, with $116.6 million in cash and no debt, enhances its strategic flexibility.
Benefits from the Infrastructure Investment and Jobs Act (IIJA) further support Gencor's market position. Yet, challenges persist, including an 8.3% third-quarter fiscal 2024 revenue decline due to shipment delays, decreasing gross margins and rising operating expenses.
While Gencor's robust backlog is a positive indicator, over-reliance could expose the company to risks if order fulfillment delays persist. Additionally, increased reliance on non-operating income and marketable securities introduces volatility, posing risks in uncertain economic conditions.
(You can read the full research report on Gencor Industries here >>>)
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.