The Zacks Analyst Blog Highlights:Boeing Company, Microsoft Corporation, Timken Co., Cummins and Toro Co.

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Nov 15, 2012, 08:32 ET

CHICAGO, Nov. 15, 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 Boeing Company (BA), Microsoft Corporation (MSFT), Timken Co.(TKR), Cummins (CMI) and Toro Co. (TTC).

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Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks are offered free.

Here are highlights from Thursday's Analyst Blog:

A Resurgent America

Exports have been an American success story lately. This is corroborated by the U.S. trade deficit falling from 6% of Gross Domestic Product (GDP) in 2006 to the neighborhood of 4% lately. A weaker dollar, in conjunction with stagnant wages at home, has improved American competitiveness vis a vis China where pay scales have moved up.

More recently, in September 2012, the U.S. Census Bureau and the U.S. Bureau of Economic Analysis revealed that American exports stood at $187 billion and imports at $228.5 billion, yielding a monthly trade deficit of $41.5 billion, down from $43.8 billion in August. Stronger exports led to the narrowest trade deficit in a while. Both merchandise and service exports have been on the upswing.

Not only have exports boomed but the basket of exports has evolved over time. Formerly, the export limelight went to the big corporations such as The Boeing Company (BA) and Microsoft Corporation (MSFT). Today, a multitude of small and large companies are enjoying success in overseas markets. The services sector, a traditional American strong point, is doing even better. We believe that companies operating in global markets enjoy diversified revenue streams which may cushion them from shocks.

Of late, U.S. engineering companies have staged a dramatic comeback. Several companies based in the Mid West, such as Timken Co. (TKR), Cummins (CMI) and Toro Co. (TTC), are building Asian and other economies. In the process, they are creating jobs back home. In conjunction with cheap shale gas from fracking, this export- led boom may be a second chance towards industrialization for the Rust Belt of the U.S.A. Based in Canton, Ohio, Timken uses its understanding of management of friction, materials and transmission of power to enhance the performance of machinery used in industrial settings. The company operates in four segments, namely, steel, aerospace and defense, mobile industries and process industries. It had sales of about $5,200 million in 2011. At Timken, almost one-third of sales were outside the U.S. Emerging markets accounting for close to $900 million of the company's revenues. Its sales in Asia climbed 21% year over year.

Headquartered in Columbus, Indiana, Cummins designs, produces and sells engines. It had sales of $18,048 million in 2011, up 36% year over year, and generated 54% of its revenues outside U.S. in the most recent four quarters. Its far-flung operations across China, Brazil and India partly insulate it from a slowdown across industries or geographies.

Toro, based in Bloomington, Minnesota, has its centennial coming up in 2014. It is a provider of landscape maintenance and turf equipment as well as irrigation systems. The company has a solid following among golf courses throughout the world. Toro had sales of $1,884 million in fiscal 2011 and derived about one-third of its revenues from international markets. Most of its export-driven production takes place in America.

The services line item is showing buoyancy and not just in traditional plain vanilla activity such as travel and tourism. Instead, we see broad-based, value-added exports, in such spheres such as consultancy, design, engineering and financial services. Many of these knowledge-based companies may be unlisted.

Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks are offered free.

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