For Immediate Release
Chicago, IL – November 25, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events affecting stocks and the financial markets. Stocks recently featured on the blog include: Linde plc LIN, Texas Instruments Inc. TXN, Trane Technologies plc TT, PACCAR Inc PCAR, and AmerisourceBergen Corp. ABC.
Here are the highlights from Wednesday’s analyst blog:
Results scorecard and research reports for Linde, TI and Trane
The Zacks Research Daily presents the best research from our team of analysts. Today’s Research Daily includes an update on the third quarter earnings season that is drawing to a close, along with new research reports on 16 big stocks including Linde plc (LIN), Texas Instruments Inc. (TXN) and Trane Technologies plc (TT ). These research reports have been selected from the approximately 70 reports published today by our team of analysts.
You can All current research reports can be found here >>>
Scorecard of the season’s Q3 results
With results for 486 S&P 500 members, or 97.2% of all members of the index, already released, the third-quarter reporting cycle has effectively come to an end. Total earnings for these companies are up +2% from the same period last year, on +11.7% higher earnings, with 69.5% beating EPS estimates and 68.5% beating sales estimates.
As we have repeatedly emphasized, Q3 EPS and Revenue percentages are below what we have seen from the same group of companies in the past few reporting cycles, but are otherwise within historical ranges, albeit at the low end of ranges.
For the fourth quarter of 2022, total earnings for the S&P 500 are currently expected to decline -5.6% on +4.4% higher earnings compared to the same period last year. Estimates have been falling steadily, with the expected earnings decline falling from the current -5.6% versus +1.7% at the start of the quarter. Excluding the contribution from the energy sector, 4Q22 earnings for the rest of the index would be down -10.2% from the same period last year.
For full year 2023, S&P 500 earnings are currently expected to rise +2.6% on +2.4% higher earnings.
Estimates have declined steadily since peaking in mid-April, with overall S&P 500 returns down -8.8% and excluding the energy sector down -11.7%.
Earnings estimates fell for 13 of Zacks’ 16 sectors, with the largest declines seen in construction, retail, consumer discretionary, technology, materials, industrials and other sectors.
The research reports presented today
Linden’ Shares are up +2.9% over the past year while the Zacks Oil and Gas – Field Services industry is up +18.4%. Its process gas, like hydrogen, is used for clean fuels, while its high-purity and specialty gases are used to manufacture electronics. Linde has long-term contracts with local customers backed by minimum purchase requirements, thus ensuring stable cash flows.
The company reported strong third-quarter results, driven by increased prices and volumes in all end markets except healthcare. However, the cost of sales continues to rise, hurting the company’s bottom line. The company has paid a lower dividend yield than the industry’s compound stocks for most of the past two years.
(You can Read the full research report on Linde here >>>)
shares of Texas Instruments are down -8.0% over the past year, while Zacks Semiconductor – General Industry is down -41.2%. Although supply chains have started to relax, they remain a headwind, as do new export restrictions to China. The company’s weak fourth-quarter outlook shows signs of deteriorating chip demand. This remains a major concern. Additionally, weakness in the personal electronics and industrial end markets remains an overhang.
However, the continued recovery of the automotive market provided momentum. Increasing momentum in the communications equipment and enterprise systems markets continued to drive results.
In addition, the strong performance of the Analog and Embedded Processing segments made a good contribution. Solid investments in new growth paths and competitive advantages remain tailwind.
(You can Read the full Texas Instruments research report here >>>)
shares of Trane Technologies are down -8.6% over the past year versus a -62.4% decline in the Zacks Technology Services industry. The company’s variety of products and services has subjected Trane to fierce competition in price, quantity, delivery, service, support, technology and innovation. The company’s business is subject to seasonal fluctuations in sales. Lower liquidity remains a concern. Partly due to these headwinds, the company’s bottom line will be impacted.
However, Trane Technologies remains focused on improving the quality of its products and services and operational efficiencies to achieve sustained improvements in earnings and cash flow. It prioritizes business operating system improvement and innovation through business transformation initiatives and prudent investments.
Trane has a track record of buying back shares and consistently paying dividends. Such moves inspire confidence among investors and have a positive impact on the company’s bottom line.
(You can Read the full research report on Trane Technologies here >>>)
Other notable reports we feature today are PACCAR Inc. and AmerisourceBergen Corp..
Why haven’t you checked out Zacks’ top stocks?
Our 5 top-performing strategies blew away the S&P’s impressive +28.8% surge in 2021. Amazingly, they have skyrocketed +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks for free and without obligation.
See shares free >>
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. The potential for loss is inherent in every investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a is suitable for certain investors. It should not be assumed that investments in any security, company, sector or market identified and described have been or will be profitable. All information is current at the time of publication and is subject to change without notice. Any views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or investment management activities for securities. These returns are from hypothetical portfolios composed of Zacks rank = 1 stocks rebalanced monthly excluding transaction costs. These are not actual stock portfolio returns. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information on the performance figures presented in this press release.
Want the latest recommendations from Zacks Investment Research? Today you can download the 7 best stocks for the next 30 days. Click here to get this free report
Texas Instruments Incorporated (TXN): Free Stock Research Report
AmerisourceBergen Corporation (ABC): Free Stock Research Report
PACCAR Inc. (PCAR): Free Stock Research Report
Linde plc (LIN): Free stock research report
Trane Technologies plc (TT): Free stock research report
To read this article on Zacks.com, click here.
Zacks Investment Research