Tuesday, March 10, 2020
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AT&T Inc. (NYSE:T), Exxon Mobil Corp. (XOM) and Nike, Inc. (NYSE:NKE). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
AT&T’s shares have outperformed the Zacks Wireless National industry over the past one-year period (+14.8% vs. +5.6%). AT&T’s wireless growth opportunities with the widespread launch of mobile 5G services in 2019 remain impressive. Incremental contribution from WarnerMedia and Xandr segments also bode well.
However, the company is witnessing a steady decline in linear TV subscribers and legacy services. Its wireline division is also facing loss in access line due to competitive pressure from VoIP service providers. As AT&T tries to woo customers with discounts, freebies and cash credits, margin pressures tend to soar.
(You can read the full research report on AT&T here >>>)
Exxon Mobil’s shares have declined 40% so far this year against the Zacks Oil and Gas - Integrated – International industry’s fall of 38.6%. Exxon Mobil witnessed significantly lower earnings from its downstream & chemicals businesses in 2019. With no near-term resurgence in demand in the horizon, the business segments’ performances are not expected to improve anytime soon.
However, the company’s bellwether status in the energy space, optimal integrated capital structure that has historically produced industry-leading returns and management’s track record of capex discipline across the commodity price cycle make it a relatively lower-risk energy sector play.
(You can read the full research report on Exxon Mobil here >>>)
Nike’s shares have declined 17% on a year-to-date basis against the Zacks Shoes and Retail Apparel industry’s fall of 18.3%. Shares of Nike have declined year to date as analysts are concerned about the coronavirus outbreak in china and its effects on Nike’s results. The company, in February, temporarily closed nearly half of company-owned stores in Greater China, which should hurt its results. Moreover, concerns related to higher operating costs, tariffs and foreign currency may hurt performance in the near term.
However, it reported strong second-quarter fiscal 2020 results gaining from the execution of Consumer Direct Offense, and strength in Wholesale and Nike Direct businesses. It expects brand recognition, robust innovation and positive response from Nike Direct and wholesale partners to aid results in fiscal 2020.
(You can read the full research report on NIKE here >>>)
Other noteworthy reports we are featuring today include The Boeing Company (NYSE:BA), Verizon Communications Inc. (NYSE:VZ) and Cognizant Technology Solutions Corporation (NASDAQ:CTSH).
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.7% per year.
These 7 were selected because of their superior potential for immediate breakout.
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Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
BioDelivery (BDSI) Rides on Belbuca Growth, Bunavail Slows
Per the Zacks analyst, BioDelivery's pain drug, Belbuca, had impressive growth in 2019. The drug has long-term potential to achieve $300 million in annual sales.
Waste Management (NYSE:WM) Solid Waste Business Strong, Debt High
The Zacks analyst believes that strong performance of solid waste business continues to benefit Waste Management's cash and earnings.
Progressive (NYSE:PGR) Premiums Aid, Cat Loss Woes Persist
Per the Zacks analyst, Progressive is set to grow on solid Agency and Direct business, which will drive improvement in net premiums.
ResMed (RMD) Gains Ground in SaaS on MatrixCare Contribution
The Zacks analyst is bullish on ResMed's strong growth within Software-as-a-Service portfolio on continued momentum in the Brightree service and an additional contribution from the MatrixCare buyout.
Marriott (MAR) Banks on Expansion Plans, Currency Woes Hurt
Per the Zacks analyst, Marriott's efforts to expand its presence worldwide and capitalize on the demand for hotels will drive growth.
Verizon (VZ) Focuses on Higher Revenue Mix to Stoke Growth
Per the Zacks analyst, focus on online content delivery, mobile video and online advertising will likely stoke growth for Verizon as it emphasizes on higher revenue mix of cloud and security services.
Cognizant's (CTSH) Domain Expertise Boosts Growth Prospects
Per the Zacks analyst, Cognizant is benefiting from domain expertise as well as its ability to harness the ongoing digital transition amid stiff competition and lackluster bank spending.
New Upgrades
NuStar Energy's (NS) Permian Exposure to Spur Growth
The Zacks analyst believes that NuStar's oil pipeline network in the prolific Permian Basin is expected to drive meaningful margin upside on the back of higher volumes transported.
Local TV Station Acquisitions Aid TEGNA's (TGNA) Prospects
Per the Zacks analyst, TEGNA's continued acquisitions of local TV stations that comprise the Big Four affiliates are likely to aid the top line and improve cash flow visibility in 2020.
Investment Banking Income and Expansions Aid Evercore (EVR)
Per the Zacks analyst, Evercore's efforts to grow investment banking business bode well for the long term and are expected to support revenue growth. Moreover, expansion efforts act as a tailwind.
New Downgrades
Margin Pressure, Elevated Costs Hurt Hilltop Holdings (HTH)
Per the Zacks analyst, pressure on net interest margin due to lower rates will likely hurt Hilltop Holdings' top line. Higher costs due to continued investments in franchise might hamper profits.
Low Volumes & High Costs to Hurt Packaging Corporation (PKG)
Per the Zacks analyst, lower volumes due to higher scheduled outages at its mills along with increased freight and labor costs will dent Packaging Corporation's results.
Low 737 Deliveries, 787-Engine Issues Hurt Boeing (BA)
Per the Zacks Analyst, low 737 deliveries as a result of the worldwide grounding of 737 Max jets hurts sales. Moreover, risks related to 787 engine issues, raises concern.
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Exxon Mobil Corporation (NYSE:XOM): Free Stock Analysis Report
Verizon Communications Inc. (VZ): Free Stock Analysis Report
AT&T Inc. (T): Free Stock Analysis Report
NIKE, Inc. (NKE): Free Stock Analysis Report
Cognizant Technology Solutions Corporation (CTSH): Free Stock Analysis Report
The Boeing Company (BA): Free Stock Analysis Report
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Zacks Investment Research