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Top Research Reports for Visa, AT&T & Coca-Cola

Mark Vickery

Tuesday, December 3, 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 Visa (V), AT&T (T) and Coca-Cola (KO). 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 >>>

Visa’s shares have underperformed the Zacks Financial Transaction Services industry year to date (+37.8% vs. +41%). The Zacks analyst believes that numerous acquisitions and alliances plus technology upgrades and effective marketing have paved the way for long-term growth and consistent increase in revenues.

Shift in payments to new methods such as mobile, cards, online and via wearables paves way for long term growth. The acquisition of Visa Europe is a long-term growth strategy for the company. Its international business has been expanding and adds diversification benefits. Its strong capital position is another positive.

However, high client incentives and expenses weigh on its operating margin. Also, adverse foreign exchange volatility imparts instability to the company’s earnings.

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

Shares of AT&T have gained 4.5% in the past three months against the Zacks Wireless National industry’s rise of 2.9%. The Zacks analyst believes that AT&T’s three-year financial framework is likely to drive significant improvement in margins and bottom-line growth with sustained investments and debt reduction.

It aims to deploy a standards-based, nationwide mobile 5G network in early 2020. AT&T’s 5G Evolution technology is live in more than 200 markets, and is expected to reach more than 400 markets by the end of 2019. The company anticipates gaining a competitive edge over rivals through edge computing services.

However, AT&T is witnessing a steady decline in linear TV subscribers and legacy services. Its wireline division is facing loss in access line due to competitive pressure from VoIP service providers. As the company tries to woo customers with discounts, freebies and cash credits, margin pressures tend to soar.

(You can read the full research report on AT&T here >>>)

Coca-Cola's shares have gained 7.5% over the past six months against the Zacks Soft Drinks Beverages industry's rise of 1.8%. The Zacks analyst believes that the company’s focus on consumer-centric innovation, solid core brand performance and improved execution in the marketplace is aiding performance.

These also bolstered its quarterly performances as evident from its ninth straight sales beat in third-quarter 2019. While earnings were in line with estimates in the quarter, the company still registered positive earnings surprise in eight of the last 10 quarters.

Additionally, revenues improved year over year on strength across all segments as well as growth in volume and price/mix. Innovation and investment in core categories and brands have been the key focus area, which led to the expansion of retail value share. However, it expects adverse currency rates to significantly mar results in 2019 and beyond.

(You can read the full research report on Coca-Cola here >>>)

Other noteworthy reports we are featuring today include American Express (AXP), Waste Management (WM) and Kimberly-Clark (KMB).

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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

Increasing Revenues, Solid Balance Sheet Aid Visa (V)

AT&T (T) Rides on 5G Deployment & Edge Computing Services

Investment & Innovation Mirror Coca-Cola's (KO) Core Strength

Featured Reports

Solid Balance Sheet, Revenue Rise Aid American Express (AXP)

Per the Zacks analyst, revenue rise from business growth in new verticals, shift toward digital payment, increase in consumer spending, is impressive.

Waste Management (WM) Solid Waste Business Strong, Debt High

The Zacks analyst believes that strong performance of solid waste business continues to benefit Waste Management's cash and earnings.

Kimberly-Clark's (KMB) Restructuring Plans to Aid Earnings

Kimberly-Clark expects cost savings of nearly $400 million in 2019, from its FORCE Program and 2018 Global Restructuring Program.

Divestment Strategy Aids L3Harris Tech (LHX), Debt Hurts

Per the Zacks Analyst, L3Harris follows a disciplined divestment strategy to efficiently focus on its core operations.

Expanding Diagnosis & Treatment Portfolio Aids Philips (PHG)

Per the Zacks analyst, Philips continues to benefit from growing Diagnosis & Treatment business on the back of partnerships, expanding geographical coverage and innovative solutions.

Telefonica's (TEF) Holistic Growth Model to Aid Market Traction

Per the Zacks analyst, Telefonica is likely to witness improved long-term prospects through several growth strategies with the augmentation of ultrafast networks in the smartphone market.

SBA Communications (SBAC) Rides on Strong Leasing Business

Per the Zacks analyst, SBA Communications is likely to benefit as its domestic and international customers continue to stay active primarily with 4G densification work and early 5G deployment.

New Upgrades

CDW Benefits From Robust Growth in Customer End Markets

Per the Zacks analyst, CDW's broad-based product and solutions portfolio is boosting growth across its customer markets, which include corporate, small business, government, education and healthcare.

DICK'S Sporting (DKS) Comps Gain from Exit of Hunt Business

Per the Zacks analyst, DICK'S Sporting is on track with the removal of the hunting category from its stores and replacing it with more compelling assortments. This is likely to aid comparable sales.

Solid Automotive Space Momentum Aids Amkor Technology (AMKR)

Per the Zacks analyst, rising need for advanced packaging in ADAS, infotainment and other digital intensive applications is aiding Amkor Technology's momentum in automotive space.

New Downgrades

Weak Auto Production, Competition Hurt TE Connectivity (TEL)

Per the Zacks analyst, sluggish global auto production remains a headwind for TE Connectivity's Transportation Solutions segment. Also, rising competition from Amphenol and Molex is a risk.

Declining Demand for Trucks to Hurt Cummins' (CMI) Sales

Per the Zacks Analyst, declining demand for heavy trucks - which is Cummins' chief end market - will likely mar its prospects in both domestic and international regions, in the days ahead.

Weak Demand, Higher Input Costs Ail Astec Industries (ASTE)

The Zacks analyst is worried that Astec's revenues will bear the brunt of weak demand in domestic markets as it generates approximately 80% of its sales while input cost inflation will dent margins.

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Waste Management, Inc. (WM) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
AT&T Inc. (T) : Free Stock Analysis Report
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
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