Top Stock Reports for Exxon Mobil, Adobe & T-Mobile US
Wednesday, August 2, 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 Exxon Mobil Corp. (XOM), Adobe Inc. (ADBE) and T-Mobile US, Inc. (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 >>>
Shares of Exxon Mobil have outperformed the Oil and Gas - Integrated - International industry over the past year (+21.1% vs. +18.3%). The company’s bellwether status and an optimal integrated capital structure has historically produced industry-leading returns make it a relatively lower-risk energy sector play.
In Stabroek Block, located off the coast of Guyana, Exxon Mobil has made many major discoveries that significantly improve its production outlook. The advantaged growth projects of Guyana have lower greenhouse gas intensity than most of the oil and gas-producing resources across the globe. Exxon Mobil also has a strong presence in the Permian Basin, the most prolific resource in the United States.
However, the firm reported weak second-quarter earnings owing to lower crude price realizations. The firm’s dividend yield is lower than the composite stocks belonging to the industry. Thus, Exxon Mobil is lagging its peers when it comes to shareholders’ returns.
(You can read the full research report on Exxon Mobil here >>>)
Adobe’s shares have outperformed the Zacks Computer - Software industry over the past year (+29.3% vs. +22.6%). The company is benefiting from strong demand for its creative products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Rising subscription revenues and solid momentum across the mobile apps are major positives.
Additionally, growth in emerging markets and robust online video creation demand remain tailwinds. Additionally, solid demand for Adobe’s commerce offerings and growing adoption of Acrobat. The Zacks analyst remain optimistic about Adobe’s market position, compelling product lines and continued innovation.
However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion.
(You can read the full research report on Adobe here >>>)
Shares of T-Mobile US have declined -2.0% over the year-to-date period against the Zacks Wireless National industry’s decline of -11.3%. The company’s declining prepaid customer addition due to moderation of industry growth and low equipment revenues are major concerns. Stiff competition and saturation in the wireless market are straining margins.
Promotional offers and low-priced service plans to expand the customer base are putting pressure on profitability. High debt burden remains additional headwind. Nevertheless, its 5G network covers 98% of Americans and Ultra Capacity 5G covers 285 million people.
The company is gaining from its dedicated 5G spectrum asset with superior propagation, network leadership and industry-leading postpaid net customer addition. Low postpaid phone churn rate and strong growth in high-speed Internet customers are tailwinds.
(You can read the full research report on T-Mobile US here >>>)
Other noteworthy reports we are featuring today include Mondelez International, Inc. (MDLZ), Marsh & McLennan Companies, Inc. (MMC) and Schlumberger Ltd. (SLB).
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
ExxonMobil (XOM) Banks on Offshore Guyana Discoveries
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
T-Mobile (TMUS) Rides on Healthy Customer Growth, 5G Expansion
Featured Reports
Mondelez (MDLZ) Gains on Solid Chocolate & Biscuit Categories
Per the Zacks analyst, Mondelez has been gaining on its focus on expanding the core chocolate & biscuit categories. Both these categories registered double-digit growth in the second quarter of 2023.
Rising Revenues Aid Marsh & McLennan (MMC) Amid High Expenses
Diverse product offerings & solid client retention will boost Marsh & McLennan's top line, expects the Zacks analyst. However, increasing costs might hamper margins.
SLB Likely to Gain From Increased Oilfield Service Demand
SLB might witness another year of margin growth from increased service pricing since its overall operations see broad-based expansion. Yet, its aggressive capital budget concerns the Zacks analyst.
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.
Quanta (PWR) Banks on Solid Backlog Level Amid High Costs
Per the Zacks analyst, increasing backlog levels, strategic buyouts and carbon-footprint reduction initiatives bode well for Quanta. However, high costs, project delays and oil & gas volatility ail.
Carvana (CVNA) to Gain From Cost Cut and Debt Restructuring
The Zacks analyst is optimistic about Carvana's debt restructuring deal, which seeks to reduce its debt by more than $1.2 billion. Further, reduction of SG&A costs is improving the company's EBITDA.
FDA Nod to Reata's (RETA) Rare Disease Drug Fuels Growth
The Zacks Analyst is encouraged by the FDA's recent approval to Reata's Skyclarys for the treatment of Friedreich's ataxia. Based on this approval, Reata received a buyout offer from Biogen.
New Upgrades
Solid AUM, Business Diversification Aid T. Rowe Price (TROW)
Per the Zacks analyst, robust AUM balance, business diversification, buyouts and global reach continue to aid T. Rowe Price. Its decent liquidity position helps to sustain steady capital deployments.
Innovations and Strong Backlog to Aid Textron's (TXT) Growth
Per the Zacks analyst, solid order activity for Textron's products tends to boost its backlog. Also, new product launch will enable Textron to capture more shares in the market.
RenaissanceRe (RNR) Rising Premiums & Strategic Buyouts Aid
Rate increases will support RenaissanceRe's premium growth from Casualty and Specialty business, expects the Zacks analyst. Also, strategic acquisitions will bring in high-growth low-risk assets.
New Downgrades
Weak Freight Demand and Low Liquidity Hurt Werner (WERN)
The Zacks Analyst is pessimist about Werner's low current ratio as it implies a reduced ability to generate cash. Also, weakness in the freight market is worrisome.
Recent Dip in Gold Price, Low Output Ail Royal Gold (RGLD)
Per the Zacks analyst, the recent fall in gold price will likely hurt Royal Gold's performance. Lower sales at certain mines also remain concerning.
Weak Asia Travel Retail Business Hurts Estee Lauder (EL)
Per the Zacks analyst, weak performance in Estee Lauder's Asia travel retail business due to slower recovery from the COVID pandemic is weighing on its results. Rising costs remain a concern.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Schlumberger Limited (SLB) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
