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The Zacks Analyst Blog Highlights: United Technologies, Lockheed Martin, NextEra Energy, Stryker and Kimberly-Clark

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For Immediate Release

Chicago, IL – April 26, 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: United Technologies , Lockheed Martin (LMT - Free Report) and NextEra Energy (NEE - Free Report) , Stryker (SYK - Free Report) and Kimberly-Clark (KMB - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

Top Stock Reports for UTX, Lockheed Martin and NextEra

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 United Technologies, Lockheed Martin and NextEra Energy. 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 >>>

United Technologies’ shares have gained +21.3% in the past three months, outperforming the Zacks Diversified Operations industry, which has increased +17.7% over the same period. United Technologies’ first-quarter 2019 earnings and revenues surpassed expectations by wide margins. The Zacks analyst thinks strength in commercial aftermarket businesses and impressive contribution from its acquired Rockwell Collins business sales will continue to boost United Technologies’ near-term revenues.

Also, continued investment in innovation as well as launch of new products is expected to enhance revenues, going forward. However, rising costs of sales remain a concern. If unchecked, higher costs and operating expenses will prove detrimental to United Technologies’ margins and profitability.

Also, it is experiencing softness in its equipment orders at Carrier segment due to lower transport refrigeration orders. Moreover, increase in debt levels can raise its financial obligations.

Shares of Buy-ranked Lockheed Martin have gained +8.2% in the past six months, outperforming the Zacks Aerospace Defense industry, which has increased +5.6% over the same period. Lockheed Martin ended the first quarter of 2019 on an impressive note, wherein earnings and revenues surpassed expectations.

The Zacks analyst thinks that being the largest defense contractor in the world, the company enjoys a strong demand for its high-end military equipment in domestic as well as international markets. As a result, solid order growth has been a key catalyst to this company. F-35 continues to be a major revenue contributor for the company.

Of late, the company is witnessing increased demand for its THAAD missiles from the Kingdom of Saudi Arabia (KSA). Favorable funding provisions made for Lockheed Martin’s products in the fiscal 2020 budget proposal should bode well for this stock’s growth. However, the company’s higher debt-to-equity ratio reflects that the stock is highly leveraged when compared to its industry and thus bears higher chance of insolvency.

Buy-ranked NextEra Energy’s shares have outperformed the Zacks Electric Power industry in the past year, gaining +16.4% vs +11.3%. NextEra’s first-quarter earnings surpassed estimates primarily due to strong performance from all the segments.

The Zacks analyst thinks investments to strengthen renewable operations through “30 by 30” plan will aid the company to continue as a market leader in renewable power generation. Focus on expanding operation in natural gas pipelines, and further expansion of business through acquisitions and organic growth positively impacted earnings. 

However, its nature of business is subject to complex and comprehensive federal, state, and other regulations. Substantial investments are undertaken to ensure the safety of nuclear operations. That said, if planned outages last longer than expected or there is an unplanned outage, the company’s normal operations and profitability might be hindered.

Other noteworthy reports we are featuring today include Stryker and Kimberly-Clark.

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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.

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