The Zacks Analyst Blog Highlights: Twenty-First Century Fox, CBS, Walt Disney, Time Warner and Tyco International

News provided by

Jul 28, 2014, 09:30 ET

CHICAGO, July 28, 2014 /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 the Twenty-First Century Fox, Inc (Nasdaq:FOXA-Free Report), CBS Corp. (NYSE:CBS-Free Report), Walt Disney Company (NYSE:DIS-Free Report), Time Warner Inc (NYSE:TWX-Free Report) and Tyco International Ltd. (NYSE:TYC-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday's Analyst Blog:

Will Gotham Heroically Save Fox's Falling Ratings?

Twenty-First Century Fox, Inc's (Nasdaq:FOXA-Free Report) television network FOX has suffered from declining ratings in the last season as both new and returning shows did not click well with the audience. Ratings declined in both overall and the coveted 18-49 age group much to the network's dismay.

Fox Network's flagship show American Idol, now in its thirteenth year, failed to woo audiences prompting the channel to cut down its timing. Other returning shows like Glee, X-Factor, New Girl and The Mindy Project also witnessed a fall in their ratings.

In fact, even most of the new shows tanked with the exception of horror drama Sleepy Hollow and comedy series Brooklyn 99. Even this year's Super Bowl broadcast could not offset the falling show ratings of the troubled network.

Moreover, Fox Network, which competes with CBS Corp 's. (NYSE:CBS-Free Report) CBS Network and The Walt Disney Company's (NYSE:DIS-Free Report) ABC Network, found tepid response from advertisers when it unveiled its program slate for the upcoming fall season. Last shock of the disappointing season was the decision of Kevin Riley, longtime entertainment chief of the network, to walk out.

The network, now headed by new chief Peter Rice has emphasized the dire need of a new hit series to pull up the ratings.

Will Gotham Be the Answer?

Fox Networks' Gotham, one of the most anticipated shows this season, will trace the origin of Commissioner James Gordon, a perpetual ally of the city's caped crusader Batman. The series created by Bruno Heller of The Mentalist fame, will be set in pre-Batman Gotham City and will never feature its most celebrated resident, although a young Bruce Wayne will feature on the show. Gotham will also trace the origins of villains like Penguin, Poison Ivy, Riddler, Catwoman and ultimately, the Joker. Gordon will be played by Ben McKenzie.

Though hit shows are very difficult to predict, the kind of interest generated by Gotham may provide Fox some relief. The trailer of the series released online earlier in May had apparently garnered about six million views in the first five days.

Batman has always been a much liked super hero among all ages. Moreover, Christopher Nolan's Batman trilogy and the upcoming Time Warner Inc's (NYSE:TWX-Free Report) Batman Vs Superman (2016) movies have kept the buzz surrounding Batman very much alive. It will be very interesting to see how the viewers react to Gotham as it tries to answer what happened to the titular city and why at all it needed the Batman.

Moreover, the super hero genre is fast catching up on the small screen. Last year, ABC brought Marvel's Agents of the S.H.I.E.L.D, a spin off of the movie The Avengers, to small screen that witnessed strong ratings. However, a jaded storyline failed to keep the viewer interest intact.

All these factors point toward a positive reaction to the series. We credit Fox Network's ability for bringing smart and critically acclaimed shows to prime time. However, with Gotham, the network has a lot at stake financially. It remains to be seen how Gotham comes to the rescue of Fox when it premieres on Sep 22 and if it fails, will Fox Network's other hyped shows like Red Band Society pitch in for rescue?

At present, Twenty First Century carries a Zacks Rank #4 (Sell).

Is an Earnings Beat in the Cards for Tyco?

Security and protection services provider Tyco International Ltd. (NYSE:TYC-Free Report) is set to report second-quarter 2014 results before the market opens on Jul 25.

In the preceding quarter, Tyco delivered a positive earnings surprise of 12.50%. On an average, the company has posted a 4.81% positive surprise in the trailing four quarters. Let's see how things are shaping up for this quarter.

Factors to Consider This Quarter

With continued improvement in its service and products revenue, supported by a rise in installation proceeds, Tyco expects to witness top-line growth. The company enjoys a relative stability in the global security and fire markets with a predictable cash generation, limited balance-sheet risk and easy cost-out opportunities.

During the quarter, Tyco completed the sale of its South Korean security business to The Carlyle Group LP, an asset management company, for $1.93 billion in cash. Also, the company sold the residual interest in its former electrical and metal products business, Atkore International, in a cash deal valued at around $250 million.

This strategic repositioning is aimed at improving the business mix of the company and generating additional value. These divested units generated over $2 billion in total deployable cash, which the company can employ in pursuing lucrative opportunities. However, the divestments are likely to create an immediate negative impact in the upcoming quarters.

Tyco, now a pure Fire & Security company, boasts an attractive acquisition pipeline. Last year, it acquired Westfire, Inc., a leading fire installation and services business in the mining and special hazard verticals in the U.S., Chile and Peru. The acquisition, expected to produce approximately $80 million in 2014 revenues, will favorably impact the company's performance in the coming quarters.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; 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.

Get the full Report on FOXA - FREE

Get the full Report on CBS - FREE

Get the full Report on DIS - FREE

Get the full Report on TWX - FREE

Get the full Report on TYC - FREE

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

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

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.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.