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Research Daily

Wednesday, July 27, 2016

Today's must-read reports are for Texas Instruments (TXN), Express Scripts (ESRX) and Stanley Black & Decker (SWK).

Zacks Rank # 2 (Buy) rated Texas Instruments shares are up more than 20% year-to-date, with the stock getting a boost from the strong Q2 earnings report.  The analyst likes the fact that margins expanded and thinks they should continue to grow. This will be attributable to the secular strength in the auto and industrial markets, a stronger mix of analog and embedded processing products, benefits of restructuring actions and more 300mm capacity coming online. (You can read the full research report on TXN here.)

Express Scripts, the pharmacy benefits manager, posted mixed results for the June quarter - beating on earnings, but coming up short on the top-line and trimming expectations for the rest of the year. The guidance cut appears to be a function of the contract dispute with Anthem, one of its largest customers. These issues notwithstanding, the company remains well placed given its ability to pursue deals, increased generic utilization, shift towards mail orders, strong specialty growth and an aging population. (You can read the full research report on ESRX here.)

Buy-rated Stanley Black & Decker shares have gained more than 13% year to date on the back of improving consumer and housing trends. The company's strong Q2 results should help sustain this momentum. The analyst likes the stock’s significant long-term upside potential, backed by a strategy of shifting its business portfolio toward favored growth markets. Also, the company remains committed to returning excess cash to shareholders. (You can read the full research report on SWK here.)

Other noteworthy reports we are featuring today include Honeywell (HON), V.F. Corp. (VFC) and Reynolds (RAI).

You can find all of today's stock research reports here.

Sheraz Mian

Director of Research

Note: Sheraz Mian regularly provides earnings analysis on and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview. He also provides weekly commentary to Zacks Premium subscribers and manages the Zacks Focus List and  Top 10  portfolios.

If you want an email notification each time Sheraz publishes a new article, please click here.

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