The Zacks Analyst Blog Highlights: Caterpillar, 3M, Eaton, AT&T and Netflix

News provided by

Jan 27, 2012, 09:30 ET

CHICAGO, Jan. 27, 2012 /PRNewswire/ -- 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 Caterpillar (NYSE: CAT), 3M (NYSE: MMM), Eaton Corp (NYSE: ETN), AT&T (NYSE: T) and Netflix (Nasdaq: NFLX).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

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 Thursday's Analyst Blog:

Thursday's Good News Started with Caterpillar

The deluge of this morning's favorable economic and earnings reports should help stocks sustain Wednesday's Fed-inspired gains. We got positive weekly Initial Jobless Claims numbers and a better-than-expected Durable Goods Orders reading. On the earnings front, Caterpillar's (NYSE: CAT) blowout results will likely ease some of the lingering concerns about weakness in China and other emerging markets.

Of this morning's economic releases, the most important number was the roughly in-line Jobless Claims reading, showing a gain of 21K to 377K. Please recall that we saw an unusually big drop last week, likely resulting from complications in seasonally adjusting the data at this time of the year. Today's reading goes some way towards correcting that. The four-week average, which smooths out the week-to-week fluctuation, dropped by 2.5K to 377.5K, maintaining its downtrend of recent weeks.

In other economic releases, the December Durable Goods Orders report came in better than expected, highlighting that corporate capital expenditures will remain a growth driver for the economy despite the expiration of accelerated depreciation expense. Headline Durable Goods Orders increased 3% in December, above the 2% consensus expectation, while the November headline gain of 3.9% was revised upwards to 4.3%.

The 'core' Durable Goods Orders reading -- which strips out defense and aircraft orders given their inherent 'lumpiness' on a month-to-month basis -- also came in better than expected at a gain of 2.1%. This compares to the weak 'core' reading in November of a 1.2% drop.

On the earnings front, Caterpillar beat big, blowing past expectations and coming out with Apple-like numbers. Driving Caterpillar's record quarterly results was continued resilient demand for the company's products in international markets, which should help ease some of the concerns about slowing demand in key emerging markets.

Importantly, the company guided higher, both for revenue as well earnings, which should help cause positive estimate revisions in the coming days. 3M (NYSE: MMM) beat on EPS and revenue, with strong demand in industrial and transportation end-markets offsetting weakness in consumer electronics. Eaton Corp (NYSE: ETN), another diversified industrial operator, missed both EPS and revenue expectations.

AT&T (NYSE: T) missed consensus EPS by a penny, though its revenue came out ahead of expectations. The company had a number of one-off items, including termination fees for the failed T-Mobile deal. The EPS miss notwithstanding, the company had an overall good report in terms of new smart-phone subscribers, cash flows, and share buyback plans.

Netflix (Nasdaq: NFLX) came out ahead of expectations after the close on Wednesday as the company was able to reverse the impact of its recent mis-steps by making strong subscriber gains.

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 Leon Zacks. As a PhD from MIT 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.

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.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

SOURCE Zacks Investment Research, Inc.