Friday, July 1, 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 Abbott Laboratories (ABT), T-Mobile US, Inc. (TMUS) and Intuit Inc. (INTU). 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 >>>
Abbott
shares have declined -6.5% over the past year against the Zacks Medical – Products industry’s decline of -31.0%. The company’s pediatric Nutrition sales reported a 4.4% year-over-year decline on an organic basis which has negatively impacted by a voluntary recall of certain powder formulas manufactured at one of Abbott’s U.S. plants.
However, barring the Nutrition segment, the company registered organic sales growth across all its core operating segments. Global COVID-19 testing-related sales were led by rapid testing products. Within Diabetes Care, the company has been in the limelight for developments in its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre. Within Adult Nutrition, the company gained from the strong performance of Ensure and Glucerna brands.
(You can
read the full research report on Abbott here >>>
)
T-Mobile
shares have outperformed the Zacks Wireless National industry over the year-to-date basis (+16.0% vs. +6.7%). The company is on track to complete the Sprint customer network migration mid-year and decommissioning by the year-end. It is expanding its Home Internet pilot extensively while preparing to launch the 5G Home Internet service. Its Extended Range 5G covers 315 million people or 95% of Americans. The Ultra Capacity 5G covers 225 million people and nearly 85% of T-Mobile’s customers.
About 45% of postpaid customers are using a 5G phone, and 5G devices account for more than half of the total network traffic. However, it operates in a fiercely competitive and almost saturated U.S. telecom market. Low-priced plans for consumers and small enterprises have not improved the bottom line. Promotional activities to lure customers from rivals hurt its profitability.
(You can
read the full research report on T-Mobile here >>>
)
Intuit
shares have declined -22.1% over the past year against the Zacks Computer – Software industry’s decline of -15.4%. The company’s near-term prospect looks gloomy as the global lockdown amid the coronavirus crisis has affected small businesses, posing risks to its revenue growth. Additionally, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting bottom-line results in the near term.
However, Intuit is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues. The TurboTax Live offering is also driving growth in the Consumer tax business. Solid momentum in the company’s lending product, QuickBooks Capital, remains positive. Moreover, the company’s strategy of shifting its business to a cloud-based subscription model will help generate stable revenues over the long run.
(You can
read the full research report on Intuit here >>>
)
Other noteworthy reports we are featuring today include BHP Group Ltd. (BHP), Analog Devices, Inc. (ADI) and The Progressive Corp. (PGR).
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
Abbott’s (ABT) Diabetes Arm Grows Amid Baby Formula Crisis
T-Mobile (TMUS) Poised to Benefit From Extensive 5G Coverage
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Featured Reports
Rising Iron Prices to Aid BHP Group (BHP) Amid High Costs
The Zacks analyst believes improving iron prices, focus on lowering debt, investment in major projects and efforts to make operations more efficient will drive BHP’s results amid inflated costs.
Progressive’s (PGR) Solid Policies in Force Aid, Cat Loss Ail
Per the Zacks analyst, Progressive is set to grow on, solid policies in force, competitive rates and leadership position. However, cat loss exposure inducing underwriting volatility ails.
America Movil (AMX) Benefits From High Demand For 5G network
Per the Zacks analyst, America Movil’s performance is gaining from robust demand for 5G and wireless network. However, high network investments and firm’s high leverage remain concerns.
High Margin Assets & Cost Management Aid Devon Energy (DVN)
Per the Zacks analyst Devon’s strong production from its high margins assets and efficient cost management will drive performance over the long run.
Chipotle (CMG) Banks on Digital Initiatives, High Costs Ail
Per the Zacks analyst, Chipotle’s consistent strength in digital sales and positive customer reception to new menu items bode well. However, inflationary wage pressures are a concern.
Upbeat Air-travel Demand Aids Allegiant (ALGT), Costs Ail
The Zacks analyst is impressed with the buoyant air-travel demand. High fuel costs are , however, concerning.
Pandemic-led Supply Constraints Hurt Analog Devices (ADI)
Per the Zacks analyst, coronavirus pandemic induced supply-chain disruptions are hurting Analog Devices. Also, the ongoing conflict between Russia and Ukraine remains a headwind.
New Upgrades
Nutrien (NTR) Gains on Strong Demand and Higher Prices
Per the Zacks analyst, the company will gain from solid demand for fertilizers driven by the strength in global agriculture markets. Higher prices for crop nutrients will also support its margins.
Imperial (IMO) to Gain from Majority Holding by ExxonMobil
The Zacks analyst believes that Imperial Oil’s financial backing by majority owner ExxonMobil adds to the company’s financial stability and helps it to access cheap capital.
Higher Rates, Loans, GEAR Up initiatives Aid Comerica (CMA)
Per the Zacks analyst, Comerica’s focus on revenue-enhancing GEAR Up initiatives will help drive operational efficiency. Also, higher interest rates and decent loan demand will aid top line growth.
New Downgrades
B&G Foods’ (BGS) Margins Troubled by Input Cost Inflation
Per the Zacks analyst, B&G Foods has been grappling with input cost inflation. In 2022, management expects to keep seeing cost inflation for inputs, like ingredients, packaging and transportation.
Supply Chain Bottleneck to Hurt Big Lots’ (BIG) Margins
Per the Zacks analyst, supply chain and freight headwinds, as well as inflationary pressures are hurting Big Lots’ margins. In first-quarter fiscal 2022, gross margin contracted 350 basis points.
Dull Personal Care Sales, Weak Margins Irk Amedisys (AMED)
The Zacks analyst is concerned about Amedisys’ declining sales across the Personal Care segment. Contraction of both margins on escalating costs and expenses raise apprehension as well.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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