Top Stock Reports for Cisco Systems, T-Mobile US & Stryker
Wednesday, March 1, 2023
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 Cisco Systems, Inc. (CSCO), T-Mobile US, Inc. (TMUS) and Stryker Corp. (SYK). 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 Cisco Systems were in line with the Zacks Computer - Networking industry over the past six months (+8.6% vs. +8.5%). The company has benefited from easing supply chain conditions, greater availability of components and redesigning of some products. Cisco witnessed strong demand for its products, including the Catalyst 9000 family, Cisco 8000, Wireless, Meraki, ThousandEyes and Duo.
Nevertheless, it believes this situation provides growth opportunities for low-power-consuming technologies, including IoT, Silicon One and Power over Ethernet. Cisco’s investments across its security business, focusing on cloud-based offerings, is expected to drive growth in the long haul. Cisco provided strong outlook for second-quarter fiscal 2023.
However, Cisco witnessed cautious spending in European markets due to a dramatic increase in energy costs and market volatility.
(You can read the full research report on Cisco Systems here >>>)
Shares of T-Mobile US have outperformed the Zacks Wireless National industry over the past year (+13.2% vs. -14.3%). With industry-leading growth in postpaid and broadband customers driven by superior 5G network and focus on customers, T-Mobile is on track to complete the Sprint customer network decommissioning.
T-Mobile US has augmented its 5G footprint by introducing 5G Home Internet services in several states. T-Mobile plans to reach 300 million people within the current year. It intends to bring more competition to home broadband, especially in underserved rural markets.
However, it operates in a fiercely competitive and almost saturated U.S. telecom market, which lowers its growth potential to some extent. Several promotional activities to lure additional customers are further eroding its profitability. Importantly, the costs incurred to gain customers and enhance revenues have not rewarded its shareholders yet. Debt obligation woes also persist.
(You can read the full research report on T-Mobile US here >>>)
Stryker’s shares have outperformed the Zacks Medical - Products industry over the past six months (+29.0% vs. +3.0%). The company saw strong performance across both its segments in fourth-quarter 2022. Internationally, it reported mid-single-digit organic growth, highlighted by double-digit organic growth in Europe and emerging markets. A solid solvency position is a plus.
Per management, the company managed to deliver robust growth in both of its businesses and demonstrated promising integration of Wright Medical despite the COVID-19 led disruptions. Strength in its flagship Mako platform continues to favor the company.
However, inflationary pressure and supply-chain challenges continue to plague Stryker. Stiff competition in the MedTech space remains a headwind. Contraction in both gross and operating margin is another challenge.
(You can read the full research report on Styker here >>>)
Other noteworthy reports we are featuring today Sanofi (SNY), The Progressive Corp. (PGR) and PayPal Holdings, Inc. (PYPL).
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
Solid Portfolio, Easing Supply Chain Issues Aid Cisco (CSCO)
T-Mobile (TMUS) Rides on Extensive National 5G Footprint
Diversified Product Portfolio Drives Stryker's (SYK) Prospects
Featured Reports
Progressive's (PGR) Solid Policies in Force Aid, Cat Loss Ail
Per the Zacks analyst, Progressive is set to grow on, solid policies in force, competitive rates and leadership position. However, cat loss exposure inducing underwriting volatility ails.
PayPal (PYPL) Benefits From Increasing Total Payment Volume
Per the Zacks analyst, PayPal's total payment volume is rising owing to solid adoption of Venmo and merchant services. Further, growing momentum across PayPal Checkout experiences is positive.
General Motors (GM) to Be Aided by Robust EV Lineup
Solid demand for General Motors' electric vehicle offerings is set to boost top-line growth. But the Zacks analyst is worried about high operating and manufacturing expenses which may dent margins.
Uniform Rental Revenues Back Cintas (CTAS) Amid Cost Woes
The Zacks analyst is encouraged by strength in the Uniform Rental and Facility Services unit due to increased volumes and prices. However, cost inflation poses a threat to the bottom line.
Strength in E-commerce Unit Aids Lululemon's (LULU) Top Line
Per the Zacks analyst, Lululemon's e-commerce has been gaining from BOPIS, mobile app and ship-from-store facilities. Notably, digital channel revenues contributed about 41% of total sales in Q3.
Centene (CNC) Rides on Membership Growth, High Expenses Hurt
Per the Zacks analyst, organic growth in Medicaid and Medicare business coupled with strategic acquisitions poise Centene well for growth. However, high expenses remain a concern.
Solid Investments Boost Entergy (ETR), Weak Solvency Woes
Per the Zacks analyst, Entergy's disciplined investment in grid upgrades should drive its earnings and add impetus to its growth trajectory. However, its weak solvency position remains a bottleneck.
New Upgrades
Sanofi (SNY) Relies on Dupixent and Vaccines to Drive Growth
Dupixent has become the key top-line driver for Sanofi. The Zacks analyst believes its leading vaccine portfolio has become the primary top-line driver. Its R&D pipeline is strong.
United Airlines (UAL) Benefits From Buoyant Air-Travel Demand
The Zacks analyst is impressed with the fact that increased air-travel demand is aiding United Airlines' top-line performance.
Low Breakeven Costs to Aid Marathon Oil's (MRO) Cash Flows
The Zacks analyst believes that Marathon's extremely low oil price breakeven costs of just $35 a barrel should generate meaningful free cash flows and improve future profitability.
New Downgrades
Air Transport Services (ATSG) Reels Under High Expenses
The Zacks analyst is worried about the elevated operating expenses. High costs are hurting Air Transport Services' bottom line. ATSG's debt load is bothersome too.
Competition, Higher Interest Rates Ail OUTFRONT Media (OUT)
Per the Zacks Analyst, OUTFRONT Media's near term outlook seems bleak amidst stiff competition from several advertising channels and interest rate hikes.
High Costs Likely to Hurt Live Nation's (LYV) Prospects
Per the Zacks analyst, Live Nation's operations are likely to be affected by high labor costs and supply chain constraints. Also, costs related to the reopening of international markets are a headwind
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Sanofi (SNY) : Free Stock Analysis Report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
Stryker Corporation (SYK) : Free Stock Analysis Report
The Progressive Corporation (PGR) : Free Stock Analysis Report
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
