Top Research Reports for T-Mobile, Citigroup & Blackstone

Thursday, May 28, 2020

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 (TMUS), Citigroup (C) and Blackstone Group (BX). 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’s shares have outperformed the Zacks National Wireless industry over the past year (+27.7% vs. +0.6%). The Zacks analyst believes that intense competition is likely to limit the company’s ability to attract and retain customers, which might affect results.

T-Mobile reported mixed first-quarter 2020 results, with the bottom line beating the Zacks Consensus Estimate and the top line missing the same. On April 1, the company closed its long-pending merger with Sprint to create a new wireless giant.

The transaction enabled T-Mobile and Sprint to join their high- and low-band spectrum for a faster nationwide 5G rollout. T-Mobile has deployed 5G sites in Philadelphia and New York City using Sprint’s 2.5 GHz mid-band spectrum on its 5G network.

However, it operates in a fiercely competitive and almost saturated U.S. telecom market. To lure customers from rivals, T-Mobile launched several low-priced service plans, which enhanced revenues, but did not improve operating margin.

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

Shares of Citigroup have lost 30.4% over the past six months against the Zacks Major Regional Banks industry’s fall of 29.3%. The Zacks analyst believes that Citigroup’s streamlining efforts, along with strategic investments in core business, bode well for the long term. Also, net interest revenues will likely be supported by loan growth and mix, despite low rates.

However, the company has an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters. Further, the company's declining costs base due to wind-down of legacy assets, supports bottom line expansion.

However, pending litigation issues might keep legal expenses elevated. Additionally, volatile equity-market revenues and underwriting business are concerns. Notably, the company has temporarily suspended share buybacks through the second quarter of 2020, following the challenges from the coronavirus pandemic.

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

Blackstone’s shares have gained 0.7% over the past three months against the Zacks Investment Management industry’s fall of 3.8%. The Zacks analyst believes that the company remains well-poised to gain from its fund-raising ability, revenue mix, persistent asset inflows and inorganic growth initiatives.

The company’s earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Its first-quarter 2020 results were hurt by an increase in expenses, partly offset by higher revenues. Moreover, its transition from a publicly traded partnership to a corporation is expected to help in attracting more investors.

However, continuously increasing expenses (mainly owing to higher general and administrative costs) are expected to hamper the bottom line to an extent in the near term. Additionally, lower chances of sustainability of the company’s capital deployment activities remain a major concern.  

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

Other noteworthy reports we are featuring today include General Electric (GE), Regeneron Pharmaceuticals (REGN) and Canadian National Railway (CNI).

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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

T-Mobile (TMUS) Gains from Sprint Deal, Network Expansion

Focus on Core Operations Aid Citigroup (C), Legal Woes Linger

Asset Growth Aids Blackstone (BX) Top Line, High Costs a Woe

Featured Reports

Inorganic Moves to Aid General Electric (GE), Pandemic Hurts

Per a Zacks analyst, General Electric to gain from its inorganic activities, including from the recently signed deal to divest the lighting business.

Eylea, Dupixent Fuel Regeneron (REGN), Competition Worrisome

Per the Zacks analyst, label expansions of key drugs like Eylea and Dupixent will boost Regeneron.

Low Costs Aid Canadian National (CNI) Amid Coronavirus Woes

The Zacks analyst is impressed by the improvement in operating ratio, courtesy of low fuel costs.

CSX Boosted by Cost-Cuts Amid Sluggish Intermodal Revenues

The Zacks analyst praises the company's efforts to control costs. Improvement in the operating ratio is another positive.

AIG Benefits from Strategic Initiatives, Debts Increase

Per the Zacks Analyst, buyouts and divestitures have enhanced the company's capabilities, which in turn, have led to top-line growth.

Stabilizing Market Aids Zimmer Biomet (ZBH) Amid the Pandemic

The Zacks analyst is optimistic about a gradually stabilizing global musculoskeletal market. However, significant unfavorable impact on sales in the near term due to the pandemic is concerning.

Cost-Control Focus Aids Expedia (EXPE) Amid Coronavirus Woes

Per the Zacks analyst, Expedia's cost-saving measures to counter coronavirus-induced disruptions are positives.

New Upgrades

Phillips 66 (PSX) to Grow on Sweeny Hub Expansion Project

The Zacks analyst believes that Phillips 66's addition of two 150 Mbpd fractionators at the Sweeny Hub, backed by long-term commitments, will deliver strong-growth.

Amkor (AMKR) Rides On Advanced Products and Acquisitions

Per the Zacks analyst, Amkor Technology will continue to benefit from strength in the advanced product lines and acquisitions.

Cost-Saving Moves to Aid Kennametal (KMT) Amid Pandemic Woes

Per a Zacks analyst, Kennametal (KMT) is poised to benefit from its cost-reduction initiatives including travel restrictions, furloughs and others.

New Downgrades

Weak Industrial Demand, High Debt Ail PPG Industries (PPG)

According to the Zacks analyst, soft industrial demand due to the coronavirus pandemic will hurt the company's sales volumes.

ONEOK's (OKE) Increasing Debt is Potential Growth Deterrent

Per the Zacks analyst, ONEOK's increasing long-term debt level and lower demand for midstream operation could compromise the company's ability to service its debt.

BOK Financial (BOKF) Exposed to Escalating Operating Costs

Per the Zacks analyst, escalating business promotion and personnel costs are likely to weigh on BOK Financial's cost base. Also, unsustainable capital deployment remains a concern.

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TMobile US, Inc. (TMUS) : Free Stock Analysis Report
 
Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
 
General Electric Company (GE) : Free Stock Analysis Report
 
Canadian National Railway Company (CNI) : Free Stock Analysis Report
 
Citigroup Inc. (C) : Free Stock Analysis Report
 
Blackstone Group IncThe (BX) : Free Stock Analysis Report
 
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