Thursday, May 16, 2019
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 Cisco (CSCO), Anthem (NYSE:ANTM) and T-Mobile (TMUS).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 >>>
Cisco’s shares have gained +20.7% in the past year, outperforming the Zacks Computer Networking industry's increase of +18.1%. Cisco reported stellar third-quarter results. Moreover, both top and bottom line increased year over year. Strength witnessed in the company’s Security and Applications segments drove year-over-year growth. Order strength and improving traction of the subscription-based model were other tailwinds.
The Zacks analyst likes the strong contribution from security, Infrastructure Platforms and applications. Order strength and improving traction of the subscription-based model are other tailwinds. Strengthening collaboration portfolio which now includes Webex Teams and Accompany bodes well. Further, buyout of Duo Security and Luxtera should help the company expand its IT and data center clientele.
However, weakness in switching and routing is a headwind. Arista’s intention of manufacturing switches that connect campus networks is likely to hurt Cisco as it holds a dominant position in that market.
(You can read the full research report on Cisco here >>>).
Shares of Buy-ranked Anthem have outperformed the Zacks Medical Insurance industry in the past year (up +11.6% vs. -2.9%). The Zacks analyst thinks the company's prudent acquisitions and collaborations complement its organic growth. Its consistently growing top line paves the way for long-term growth.
A diverse product portfolio has also helped the company enhance its underwriting results. Anthem’s strong capital position backs effective capital deployment via share buybacks and regular dividends. A strong outlook for 2019 and growing membership instills investor's confidence in the company.
However, the company has been suffering from high benefit costs and selling, general and administrative expenses. Rising level of debt is another concern.
(You can read the full research report on Anthem here >>>).
Buy-ranked T-Mobile’s shares have outperformed the Zacks National Wireless industry over the past year, gaining +31.7% vs. +9%. T-Mobile reported solid first-quarter 2019 results, wherein both the top line and the bottom line beat expectations. The company has received shareholder approval for its game-changing merger with Sprint.
This is a step forward in creating the New T-Mobile through which it plans to bring robust competition to the 5G era. The New T-Mobile would have about 127 million customers and a strong closing balance sheet. The Zacks analyst thinks T-Mobile’s network expansion strategy continues to be superior to its rivals.
Its improvement in mobile plans, network performance, deployment of LTE-U technology and attractive unlimited data are key catalysts behind the stellar performance. This is supported by improving scale, healthy free cash flow generation and liquidity. However, a highly competitive and saturated U.S. wireless market remains a major headwind.
(You can read the full research report on T-Mobile here >>>).
Other noteworthy reports we are featuring today include Roper Technologies (NYSE:ROP), Williams (WMB) and HSBC Holdings (LON:HSBA) (HSBC).
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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
Application Software Segment Drives Roper Technologies (ROP)
Per the Zacks analyst, solid performance of Roper's Application Software segment, led by growth in SaaS & subscription revenue stream and strength in Strata business will lend momentum to the company.
Williams (WMB) Buoyed by Brazos Midstream JV Amid High Debt
While the newly Brazos Midstream JV will enhance Williams' exposure to the lucrative Permian Basin, the Zacks analyst is worried over the considerable long-term debt load.
Esterline Buyout to Aid TransDigm (TDG) Amid Debt Burden
Per the Zacks analyst, Esterline buyout will significantly expand TransDigm's footprint in the aerospace and defense space. Increasing debt burden may hurt its earnings.
Acqusitions, Revenue Growth Aid Centene (NYSE:CNC)
Per the Zacks analyst, numerous acqusitions made by the company have added scale and size to its business, paving the way for long term revenue growth.
Agilent's (A) Portfolio Drives Growth, Expenses Hurt Margins
The Zacks analyst believes that Agilent's broad-based portfolio and solid execution offers higher growth potential. However, slowing pharma market, higher expenses and macro weakness remain concerns.
Mettler-Toledo (MTD) Rides on Spinnaker Sales Amid Headwinds
Per the Zacks analyst, Mettler-Toledo's robust Spinnaker sales program is aiding growth in its laboratory and industrial segments.
High quality Assets in U.S and Israel Aid Noble Energy (NYSE:NBL)
Per the Zacks analyst Noble Energy's holdings in the United States Permian Basin, Tamar field and upcoming Leviathan field in Israel are going to boost its performance.
New Upgrades
Focus on China, U.K. & Digital Initiatives Aid HSBC (HSBC)
Per the Zacks analyst, HSBC's efforts to expand market share in China and the U.K. will aid financials in the long term. The bank's focus on strengthening digital capabilities will support growth.
GoPro (GPRO) Rides on Solid Demand for HERO7 Cameras
Per the Zacks analyst, GoPro aims to extend its footprint in emerging markets and remains well poised to benefit from diligent execution of operational plans and strong demand for HERO7 cameras.
Launch of Westport HPDI 2.0 Drives Westport Fuel (WPRT)
Per the Zacks analyst, the launch of Westport HPDI 2.0, which enables trucks to deliver environment-friendly robust performance, is helping to raise market share in the heavy-duty market.
New Downgrades
Southwest (LUV) Hit by Capacity Woes & 737 MAX Issues
The Zacks analyst is concerned about capacity expansion outpacing traffic growth at Southwest Airlines (NYSE:LUV). The Boeing (NYSE:BA) 737 MAX-related issues are also worrisome.
Higher Spending Amid Stiff Competition Hurts Take Two (TTWO)
Per the Zacks analyst, intense competition from the likes of EA and Activision is compelling Take Two to spend more on game development and advertising thereby keeping margins under pressure.
High Operating Expenses & Competition Hurt Vail Resorts (MTN)
The Zacks analyst thinks that Vail Resort's operational efficiencies come at the cost of increased expenses. Added costs from acquisitions are also hurting the company amid a competitive environment
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Williams Companies, Inc. (The) (NYSE:WMB): Free Stock Analysis Report
T-Mobile US, Inc. (TMUS): Free Stock Analysis Report
Roper Technologies, Inc. (ROP): Free Stock Analysis Report
HSBC Holdings plc (HSBC): Free Stock Analysis Report
Cisco Systems, Inc. (NASDAQ:CSCO): Free Stock Analysis Report
Anthem, Inc. (ANTM): Free Stock Analysis Report
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Zacks Investment Research