News

Friday, April 5, 2024

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), Abbott Laboratories (ABT) and Palo Alto Networks, Inc. (PANW). 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 >>>

Shares of T-Mobile US have outperformed the Zacks Wireless National industry over the past year (+9.3% vs. +5.3%). The company is witnessing top line expansion backed by industry-leading postpaid customer growth with a record-low churn rate.

Declining operating expenses are boosting the operating margin. Its Ultra Capacity 5G delivers superfast speeds, powering 5G smartphones and enabling innovators to deliver transformational 5G experiences. During the fourth quarter, T-Mobile added 1.6 million postpaid net customers, while postpaid net account additions were a staggering 299,000.

However, the highly competitive and saturated U.S. telecom market lowers its growth potential. Promotional offers and low-priced service plans to expand the customer base are putting pressure on its profitability. The residual value of the surrendered phones, which the companies look to sell in other markets, may induce liquidity risk if the plan falls apart.

(You can read the full research report on T-Mobile US here >>>)

Abbott Laboratories’ shares have outperformed the Zacks Medical - Products industry over the past year (+7.8% vs. +3.8%). The company’s pipeline is generating several new growth prospects, which will help sustain the positive momentum and contribute to the strong growth projection in 2024.

Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business. EPD's impressive stretch of strong performance stems from the company’s unique business model. Freestyle Libre CGM device is also on a great trajectory, continually outpacing market growth.

Within Nutrition, after a period of hiccups, Abbott has finally reestablished itself as the market leader in the infant formula business, underscoring strong customer confidence in the company's products. However, the slump in COVID-19 testing-related sales is hurting Abbott’s overall growth. Tough macro conditions also pose a concern for its operations.

(You can read the full research report on Abbott Laboratories here >>>)

Shares of Palo Alto Networks have gained +36.6% over the past year against the Zacks Internet - Software industry’s gain of +63.3%. The company’s softening IT spending amid macroeconomic headwinds might hurt its near-term prospects. Forex headwinds and higher marketing and sales expenses are likely to continue hurting its profitability. Also, high acquisition-related expenses are denting margins.

Nevertheless, Palo Alto has been benefiting from continuous deal wins and the increasing adoption of its next-generation security platforms, attributable to the rise in the hybrid work environment and the heightened need for stronger security.

PANW’s strong back-to-back quarterly performances reflect its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy. The normalization of the supply chain is also aiding growth across the Products, Services and Subscription segments.

(You can read the full research report on Palo Alto Networks >>>)

Other noteworthy reports we are featuring today include Enterprise Products Partners L.P. (EPD), The PNC Financial Services Group, Inc. (PNC) and Ameriprise Financial, Inc. (AMP).

Director of Research

Sheraz Mian

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

Enterprise (EPD) Gains on Long-term Contracts With Shippers
Enterprise is well positioned to generate steady cashflow from long-term pipeline contracts with shippers. Yet, its significant debt exposure concerns the Zacks analyst.

PNC Financial (PNC) Banks on Loans & Buyouts, High Cost Ails
Per Zacks analysts, PNC Financials gains from loan growth and strategic acquisitions. However, elevated expenses and a lack of loan portfolio diversification are near-term concerns.

Restructuring Efforts Aid Ameriprise (AMP), High Costs a Woe
Per the Zacks analyst, Ameriprise's well-diversified portfolio, and its business-restructuring efforts will likely aid revenues. Elevated expenses due to technology upgrades might hurt profits.

TC Energy's (TRP) C$34B Growth Projects to Boost Earnings
The Zacks analyst believes that TC Energy's C$34 billion of growth projects should support its earnings and dividend payouts but is worried over the massive debt of C$50 billion.

Assurant (AIZ) Set to Grow on Solid Global Lifestyle Business
Per the Zacks analyst, Assurant is set to grow on strong Global Lifestyle business, growth of fee-based capital-light businesses and solid capital management. Yet high costs weigh on margin expansion.

Xerox (XRX) Benefits From Cost and Productivity Initiatives
Per the Zacks Analyst, Xerox's bottom line is benefiting from "Project Own It," an enterprise-wide initiative aimed at increasing productivity and operational efficiency, and reducing costs.

Qinlock Sales Drive Deciphera (DCPH), Pipeline Setbacks a Woe
Per the Zacks Analyst, Deciphera has been witnessing strong traction in the market for Qinlock spurring growth. However, any pipeline setbacks will hurt the company's prospects severely.

New Upgrades

Abercrombie (ANF) Gains From Brand Strength & Other Efforts
Per Zacks analyst, Abercrombie is experiencing momentum across brands, which bolstered sales in fourth quarter. It is seeing favorable margins on lower freight costs and improved average unit retail.

Greif (GEF) to Gain From Recovery in Volumes, Acquisitions
Per the Zacks analyst, Greif is set to gain from an expected pickup in volumes reflecting the recent expansion seen in the manufacturing sector as well as its cost saving efforts and acquisitions.

Latest Technology, Acquisitions Aid Consolidated Water (CWCO)
Per the Zacks analyst, Consolidated Water uses most advanced technology for desalination, allowing it to benefit by meeting increasing demand. Strategic acquisitions will boost its performance.

New Downgrades

Low EV Volumes And Rising R&D Expenses to Ail Lear (LEA)
The Zacks analyst is worried about lower-than-expected EV volumes in 2024, which might hurt demand for Lear's products. Rising R&D spend is also a concern.

Soft Comps & High Costs Hurt Red Robin's (RRGB) Performance
Per the Zacks analyst, decline in comps on the back of low guest count and a decline in the menu mix are marring the prospects of Red Robin. Also, commodity and wage inflation are added concerns.

Weak Demand Hurts Microchip's (MCHP) Top-Line Prospects
Per the Zacks analyst, Microchip is suffering weakening demand and challenging macroeconomic environment. Persistent inflation and high-interest rates hurt prospects.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.