Monday, August 8, 2022
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 T-Mobile US, Inc. (TMUS), NextEra Energy, Inc. (NEE) and Advanced Micro Devices, Inc. (AMD). 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 >>>
T-Mobile shares have outperformed the Zacks Wireless National industry over the past year (+1.1% vs. -8.7%). The company has raised the guidance for 2022 across the board. It is on track to complete the Sprint customer network decommissioning by year's end.
The company has augmented its 5G footprint in the country by introducing 5G Home Internet services in several states. Its Extended Range 5G covers 320 million people. The Ultra Capacity 5G covers 235 million people. It intends to bring more competition to home broadband, especially in underserved rural markets.
However, it operates in a fiercely competitive and almost saturated U.S. telecom market that lowers its growth potential to some extent. Several promotional activities to lure additional customers are further eroding the profitability of the company.
(You can read the full research report on T-Mobile here >>>)
NextEra shares have outperformed the Zacks Utility - Electric Power industry over the past six months (+16.6% vs. +8.2%). The company, through the proper execution of organic projects and strategic acquisitions, is expanding its operations. NextEra currently has a lot of renewable projects in its backlog and the number is rising every quarter, which is aiding NextEra in cutting emissions.
The merger of Gulf Power and FPL strengthens NextEra Energy’s position in Florida. Improving Florida economy and FPL’s reliable services are expanding its customer volume every quarter. NextEra has ample liquidity to meet its near-term debt obligations.
However, the nature of its business is subject to complex federal, state and other regulations. Unfavorable weather conditions and an increase in supply costs adversely impact earnings.
(You can read the full research report on NextEra Energy here >>>)
AMD shares have declined -5.8% over the past year against the Zacks Electronics - Semiconductors industry’s decline of -0.2%. The Zacks analyst believes that the company is facing stiff competition from NVIDIA and Intel is concerning. Nevertheless, AMD is benefiting from strong demand of its Ryzen and EPYC server processors, owing to the increasing proliferation of Artificial Intelligence (AI) and Machine Learning (ML) in industries like cloud, gaming and data center.
The growing clout of 7 nanometer (nm) products in the data center vertical, driven by work-from-home and online learning trends, is a key catalyst. AMD provided strong 2022 guidance for revenues backed by robust growth across all businesses.
Higher server and client processor revenues are likely to lead to a sequential increase. The Xilinx and Pensando acquisition will boost AMD's data center business. Alliances with Amazon, Microsoft, Baidu and JD.com augment business prospects.
(You can read the full research report on AMD here >>>)
Other noteworthy reports we are featuring today include The Boeing Co. (BA), Activision Blizzard, Inc. (ATVI), and Johnson Controls International plc (JCI).
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
T-Mobile (TMUS) Rides on Higher 5G Footprint, Customer Adds
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
Robust Product Portfolio & Partnerships Aid AMD's Prospects
Military Business Aids Boeing (BA), Supply Chain Issue Woes
Per the Zacks analyst, Boeing boasts $2.6 trillion market opportunity for defense and space, which would bolster its growth. Yet, COVID induced supply chain shortages might hurt the stock's results.
Lack of Big Hits, Lower Console Sales Hurts Activision (ATVI)
Per the Zacks analyst, a slow year for the gaming industry, hardware supply chain issues affecting consoles and a lack of big hits is hurting Activision's profitability amid stiff competition.
Digital Efforts Aid Johnson Controls (JCI), High Costs Hurt
Johnson Controls (JCI) gains from initiatives in its OpenBlue digital platform which will boost its top line and growth. But, per the Zacks analyst, soaring commodity costs may dent margins.
Win Strategy Aids Parker-Hannifin (PH), Rising Costs Ail
Per the Zacks analyst, Parker-Hannifin's revamped "Win Strategy" and its pricing actions should boost prospects. However, high operating costs are weighing on its results.
Strong Product Portfolio Aids DexCom (DXCM) Fight Competition
Per the Zacks analyst, DexCom strong product portfolio targeting the large and growing diabetes market is helping the company fight intensifying competition with entry new competing products.
PBF Energy (PBF) to Gain From Renewable Diesel Fuel Project
The Zacks analyst expects PBF Energy to gain from its renewable fuel production facility in the Chalmette refinery, contributing to growth of sustainable biofuels.
Sun Life Financial (SLF) to Grow on Solid Asia Business
Per the Zacks analyst, Sun Life is set to grow given focus on Asia operation, growing asset management businesses and scaling-up and integration of U.S. operations. Yet, escalating expenses ail.
Loan Growth & Franchise Expansion Supports Cullen/Frost (CFR)
Per the Zacks analyst, robust loan pipelines and expansion in lucrative Texas markets will drive organic growth for Cullen/Frost. Higher revenues reflect improving fee income and net interest income.
Investments & Business Efficiency Aid Clean Harbors (CLH)
The Zacks analyst is optimistic about Clean Harbors' focus on improving its efficiency and lowering operating costs through advanced technology. Also, continued capital investments are a boon.
Rising Rates, Loan Growth Aid Valley National (VLY) Top Line
Per the Zacks analyst, Valley National will witness improvement in the top line supported by rising interest rates and higher loan demand. The company's inorganic growth efforts also seem impressive.
Stiff Competition For Eylea Concerning For Regeneron (REGN)
Per the Zacks analyst, Regeneron's lead drug Eylea is facing stiff competition from recently approved therapies which will adversely impact sales. Declining sales of REGEN-COV has also affected sales.
Inflation & Supply Chain Woes Ails Clorox's (CLX) Performance
Per the Zacks analyst, Clorox has been witnessing input cost inflation including higher manufacturing, logistics and commodity costs. This along with supply chain issues are likely to persist in FY23.
Higher Raw Material & Energy Inflation Hurt Mohawk (MHK)
Per the Zacks analysts, Mohawk's earnings ails from rising inflation, primarily in material, energy and transportation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
Johnson Controls International plc (JCI) : Free Stock Analysis Report
TMobile US, Inc. (TMUS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research