Top Research Reports for PepsiCo, T-Mobile & BlackRock

Monday, April 4, 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 PepsiCo, Inc. (PEP), T-Mobile US, Inc. (TMUS), and BlackRock, Inc. (BLK). 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 PepsiCo have outperformed the Zacks Beverages - Soft drinks industry over the past one year period (+21.9% vs. +16.7%) on the back of strong operating performance, as reflected in the recent quarterly report when volume growth and robust price/mix drove outperformance. Earnings were in line with estimates and improved year over year. The company also benefits from investments in brands, go-to-market systems, supply chains, manufacturing capacity, and digital capabilities to build competitive advantages. It also gains from the resilience and strength of global beverage and convenient food businesses.

In 2022, it expects to retain the strength and momentum witnessed in 2021. However, PepsiCo witnessed margin pressures in fourth quarter 2021 driven by impacts of supply-chain disruptions and the negative effects of the inflationary labor, transportation and commodity costs.

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

Shares of T-Mobile have outperformed the Zacks Wireless National industry over the year to date basis (+12.7% vs. +3.7%). The company continues to expand its 5G network to bring fast and affordable service across the country. It announced a series of steps to accelerate 5G developer innovation. Initiatives include a new developer platform, innovation center, venture investments, T-Mobile Accelerator participants and 5G partnerships with Disney and Red Bull. The Zacks analyst believes that dubbed 5G Forward, these moves will strengthen the 5G innovation ecosystem and help creators build the 5G future. T-Mobile’s commitment to building the world’s best nationwide 5G network is likely to bring superfast speeds to urban and rural locations.

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 >>>)

Shares of BlackRock have outperformed the Zacks Financial - Investment Management industry over the past one year period (+0.2% vs. -9.7%). The Zacks analyst believes that the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Supported by a strong liquidity position, BlackRock continues with efforts to restructure the equity business. This, along with strategic acquisitions, will likely keep aiding revenue growth and help in expanding its market share and footprints globally. Steadily improving assets under management (AUM) balance will likely further support the top line.

Its capital deployment activities look sustainable, through which it will keep enhancing shareholder value. However, elevated expenses (owing to higher administration costs) might hurt profits to some extent. The company’s high dependence on overseas revenues is another concern.

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

Other noteworthy reports we are featuring today include Automatic Data Processing, Inc. (ADP), Charter Communications, Inc. (CHTR) and Block, Inc. (SQ).

Sheraz Mian
 
Director of Research

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

Momentum in PepsiCo's (PEP) Snacking Business to Aid Growth

5G Leadership & Customer Growth to Drive T-Mobile (TMUS)

Buyouts, AUM Balance Aid BlackRock (BLK), High Costs Ails

Featured Reports

ADP Rides on Strategic Buyouts Amid Technological Challenges
The Zacks analyst likes ADP's buyout strategy to boost its position in the human capital management market. Pressure to remain technologically updated to meet varying client demands remains a concern.

Mobile & Internet Subscriber Gain Benefits Charter (CHTR)
Per the Zacks analyst, higher subscriber strength in residential and commercial internet services along with broadening Spectrum Mobile user base is driving Charter's top line.

Block (SQ) Banks on Solid Cash App Adoption, Bitcoin Growth
Per the Zacks analyst, Block is benefiting from strong Cash App engagement and its growing active customer base. Further, growing bitcoin revenues owing to robust Cash App are contributing well.

Illumina (ILMN) Banks on Strategic Pacts amid Stiff Rivalry
The Zacks analyst is optimistic about lllumina's recent partnerships including Agendia pact intended to advance the use of NGS for decentralized oncology testing. Stiff Competition remains a concern.

Investments Aid Ameren (AEE), High Emission Expenses Woe
Per the Zacks analyst, systematic investment in infrastructure project boosts Ameren's growth. Yet the stock bears high expenditure to comply with air emission regulations that may hurt its results.

RH Banks on Strategic Initiatives Amid Supply-Chain Woes
RH's focus on strategic initiatives for improving profit margins as well as solid performance of new galleries is encouraging, per the Zacks analyst. Yet, supply-chain disruptions are risks.

Acquisitions Drive Humana (HUM), High Costs Hurt
Per the Zacks Analyst, buyouts have helped the company to expand business and achieve long-term growth. However, escalating expenses continue to weigh down on the margins.

New Upgrades

Cactus (WHD) to Gain From Higher Wellhead Equipment Sales
The Zacks analyst is upbeat about Cactus' higher sales of wellhead and production-related equipment due to the rising customer drilling activity. This will get translated into increased cash flows.

Dow (DOW) Gains on Cost Actions, Project Investment
According to the Zacks analyst, Dow is well placed to benefit from cost synergy savings and productivity initiatives and its investment in high-return growth projects.

Acquisitions and Expansion Moves Aid Steel Dynamics (STLD)
Per the Zacks analyst, acquisitions will expand the company's product portfolio and shipping capabilities. Expansion actions should also add to its capacity and boost profitability.

New Downgrades

Biogen (BIIB) Hurt by Slow Aduhelm Launch, Competition
The Zacks analyst believes Aduhelm's launch has been slow due to reimbursement-led uncertainty. Increased competition is hurting Spinraza sales. Multiple generic launches are hurting Tecfidera sales.

Burlington Stores (BURL) Grapples With Higher SG&A Expenses
Per the Zacks analyst, Burlington Stores has been witnessing higher SG&A expenses on increased product-sourcing costs as well as elevated freight costs. This has been hurting margins for a while now.

Higher Costs From Rasmussen Buyout Ail American Public (APEI)
Per the Zacks analyst, American Public has been facing higher costs and expenses, mainly attributed to the inclusion of the Rasmussen University, increase in professional fees, and advertising costs.

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
 
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
 
BlackRock, Inc. (BLK) : Free Stock Analysis Report
 
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
 
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
 
TMobile US, Inc. (TMUS) : Free Stock Analysis Report
 
Block, Inc. (SQ) : Free Stock Analysis Report
 
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