For Immediate Release
Chicago, IL – January 12, 2010 – 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 (TXN), Amazon.com (AMZN), Sony Corporation (SNE), Barnes & Noble (BKS) and Nippon Telegraph & Telephone Corp. (NTT).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday’s Analyst Blog:
Texas Instruments: Upside Limited
We are optimistic about Texas Instruments’ (TXN) recent performance, although we do not expect significant movement in share prices when the company reports later this month. Our outlook is reflected by the stock’s Zacks Rank #3.
The company’s third-quarter earnings beat the Zacks consensus estimate by 3 cents, although revenue was more or less in-line, beating the consensus by 2.1%. Texas Instruments also reported double-digit bookings growth, resulting in a much stronger backlog. The company’s restructuring activities have lowered the cost structure, which along with higher utilization and better product mix, enabled Texas Instruments to generate the third quarter earnings surprise.
Last month, Texas Instruments also raised its guidance. This prompted 7 of the 37 analysts covering the stock to raise their estimates for the fourth quarter. The number of positive estimate revisions and absence of downward revisions indicate positive sentiment on TI’s performance. Moreover, estimates were exceeded in each of the last four quarters, which is also positive. However, we note that the positive surprise percentage has been going down over the past three quarters, with the rate of decline indicating a possible halt in the next quarter. Hence we do not expect significant price movement.
However, we remain encouraged by the company’s many initiatives, including the prudent use of R&D dollars. Texas Instruments has decided to use its Richardson fab for making semiconductors targeted at green energy sources, such as solar panels, energy-efficient appliances and advanced utility meters. This should fetch Texas Instruments a federal tax credit of around $51 million, a stimulus for clean energy jobs created.
The Richardson fab was originally expected to be used for digital chips, but Texas Instruments recently changed its plans and decided to turn it into the first 300mm analog fab using refurbished equipment. Last year, Texas Instruments decided to equip it with tools from bankrupt chipmaker Qimonda. This is an overall positive, as analog equipment can be used for a considerably longer period of time.
With the e-reader market poised to surge and many new players adding to the existing products from Amazon.com (AMZN), Sony Corporation (SNE) and Barnes & Noble (BKS), Texas Instruments launched its e-reader platform, including the new 45nm OMAP 3621 applications processor and the new power management chip for electronic paper display (EPD) supporting 3G modem connectivity. Texas Instruments expects the products to reduce time to market and lower costs for e-reader manufacturers.
Nippon Telegraph Downgraded
We downgrade our recommendation for Nippon Telegraph & Telephone Corp. (NTT) to Neutral, which means the stock will perform in line with the broader market. Overall performance has been impacted by less-than-anticipated sales of mobile handsets due to weak economic conditions in Japan together with significant declines in average revenue per user (ARPU) as subscribers migrate to discounted service plans.
The company faces intense pricing pressure from smaller telecom service providers. Nippon Telegraph & Telephone’s leveraged balance sheet may limit higher valuation levels over the near-term.
Nippon Telegraph & Telephone is one of the largest phone companies in the world, mostly serving Japan, with approximately 54 million fixed-line customers and 54.16 million wireless subscribers. However, the wireless subscriber market in Japan is nearing saturation.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
