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Top Research Reports for Target, Illumina & T-Mobile US

Mark Vickery

Friday, September 20, 2019

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 Target (TGT), Illumina (ILMN) and T-Mobile US (TMUS). 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 >>>

Target’s shares have outperformed the Zacks Retail- Discount & Variety industry in the year-to-date period (63.2% vs. 39.5%). The Zacks analyst thinks that the company is fast acclimatizing with the changing retail ecosystem and deploying resources to enhance omni-channel capacities, come up with new brands, remodel stores and expand same-day delivery options.

These bode well for the company that posted better-than-expected second-quarter fiscal 2019 results, wherein both the top and the bottom lines grew year over year. The company witnessed healthy traffic and impressive comparable digital channel sales. Sturdy performance prompted management to lift fiscal 2019 earnings view.

Management now envisions comparable sales to increase about 3.4% both in the third quarter and in the second half. However, we believe that incremental investments, higher wages and rise in costs due to new fulfillment options may squeeze margins.

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

Shares of Illumina have lost 4.4% in the past six months, outperforming the Zacks Medical - Biomedical and Genetics industry’s fall of 12.2%. The Zacks analyst believes llumina continues to put up a robust performance across a broad range of sequencing applications.

The launch of Veriseq NIPT v2 and the company’s partnership with AnchorDx in the second quarter also drive optimism. Over the past year, Illumina’s shares have been outperforming the industry it belongs to. With respect to quarterly results, Illumina exited the second quarter of 2019 on a solid note, with earnings and revenues beating the Zacks Consensus Estimate.

It is encouraging to note that revenues grew across the company’s high and low throughput categories. On the flip side, contraction in both margins and a year-over-year decline in Service and Other Revenues are concerns.

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

T-Mobile US’ shares have gained 7% in the past three months, underperforming the Zacks National Wireless industry’s rise of 7.9% over the same period. The Zacks analyst believes that the New T-Mobile will have about 127 million customers and a strong closing balance sheet, and is expected to heighten competition in the 5G space.

T-Mobile has cleared most of the regulatory and shareholder approvals for its game-changing merger with Sprint. T-Mobile continues to invest in its network and prepare for nationwide 5G with the aggressive rollout of its 600 MHz spectrum. The wireless carrier has introduced 5G millimeter wave network in six cities including New York and Los Angeles.

However, a highly competitive and saturated U.S. wireless market remains a major headwind. Intensifying competition is likely to limit its ability to attract and retain customers and may affect operating results. The company launched several low-priced service plans which have enhanced its revenues, but not significantly improved the bottom line.

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

Other noteworthy reports we are featuring today include DuPont de Nemours (DD), Xcel Energy (XEL) and Regeneron Pharmaceuticals (REGN).

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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

Target's (TGT) Omnichannel & Store Expansion to Boost Sales

Sales Growth in High and Low Throughputs Aid Illumina (ILMN)

T-Mobile (TMUS) Rides on Customer Growth, Network Expansion

Featured Reports

Eylea, Dupixent Drive Regeneron (REGN) Amid Competition

Per the Zacks analyst, lead drug Eylea and asthma drug Dupixent drive growth for Regeneron.

Twilio (TWLO) Banks on Growing Active Customer Accounts

Per the Zacks analyst, Twilio's continued focus on introducing products as well as its go-to-market sales strategy is helping it grow its active customer accounts, which is driving top-line growth.

Long-Term Investments, Renewable Focus Aid Xcel Energy (XEL)

Per the Zacks analyst disciplined investments in infrastructure projects and focus on renewable expansion will strengthen Xcel Energy's existing operations.

MPLX to Capitalize on Permian Bottleneck With W2W Pipeline

MPLX is well positioned to capitalize on the growing demand for midstream assets in the prolific Permian Basin with the W2W Pipeline.

Active Rider Growth Buoys Lyft (LYFT) Amid High Costs

The Zacks analyst is impressed with an 82% uptick in revenues during first-half 2019 due to by active rider growth.

Productivity Actions, New Products to Aid DuPont (DD)

While DuPont faces headwind from weak demand across certain businesses, it should gain from new product launches in high growth markets and productivity improvement actions, per the Zacks analyst.

Portfolio Repositioning to Benefit AGNC Investment (AGNC)

Per the Zacks Analyst, in the current volatile interest rate and high prepayment environment, AGNC Invesmtent's commitment to reposition the portfolio will likely optimize its performance.

New Upgrades

Project CONNECT to Fuel Columbia Sportswear's (COLM) Margins

Per the Zacks analyst, Columbia Sportswear is set to gain from Project CONNECT, which aims to boost efficiency and curtail costs. The program is likely to aid gross margin growth of 80 bps in 2019.

Solid Retirement, Group Benefits Business Aid Principal (PFG)

Per the Zacks analyst, Principal Financial should benefit from sturdy retirement and long-term savings, and solid global asset management. However higher leverage and dilution from acquisition ail.

Solid E-commerce Momentum to Bolster Hibbett's (HIBB) Sales

Per the Zacks analyst, momentum in Hibbett's digital business is likely to persist owing to gains from improved mobile app, and BOPIS and ROPIS capabilities.

New Downgrades

Weakness in Kate Spade, High SG&A Worry for Tapestry (TPR)

Per the Zacks analyst, softness in Kate Spade is likely to persist in the near term and may hurt Tapestry's sales. Also, expectation of higher SG&A in the first quarter may hurt margins to an extent.

Video Subscriber Loss Hurts Liberty Global's (LBTYA) Prospects

Per the Zacks analyst, Liberty Global is suffering from continued customer losses in the video segment, primarily due to stiff competition in the market.

High Debt, Rising Expenses Hurt Arthur J. Gallagher (AJG)

Per the Zacks analyst, Arthur J. Gallagher has been experiencing an increase in expenses and high debt level inducing higher interest expense continue to weigh on margin expansion.

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Xcel Energy Inc. (XEL) : Free Stock Analysis Report
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
Illumina, Inc. (ILMN) : Free Stock Analysis Report
DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report
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