Thursday, September 8, 2022
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, Inc. (TMUS), NextEra Energy, Inc. (NEE) and Amgen Inc. (AMGN). 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 shares have outperformed the Zacks Wireless National industry over the past year (+8.8% vs. -11.5%). The company reported solid second-quarter 2022 results with healthy customer growth driven by diligent execution of operational plans. It has raised the guidance for 2022 across the board. It is on track to complete the Sprint customer network decommissioning by the year-end.
The company has augmented its 5G footprint in the country by introducing 5G Home Internet services in several states. Its Extended Range 5G covers 320 million people. The Ultra Capacity 5G covers 235 million people.
However, it operates in a fiercely competitive and almost saturated U.S. telecom market that lowers its growth potential to some extent. Several promotional activities to lure additional customers are further eroding the profitability of the company. Furthermore the costs incurred to gain customers and enhance revenues have not yet been rewarded to shareholders
(You can read the full research report on T-Mobile here >>>)
NextEra Energy shares have gained +7.0% over the past year against the Zacks Utility - Electric Power industry’s gain of +11.9%. The company through the proper execution of organic projects and strategic acquisitions, is expanding its operations. NextEra Energy currently has a lot of renewable projects in its backlog and renewable project backlog is rising every quarter, which is aiding the company in cutting emissions.
The merger of Gulf Power and FPL strengthens NextEra Energy’s position in Florida. Improving Florida economy and FPL’s reliable services are expanding its customer volume every quarter. NextEra Energy has ample liquidity to meet its near-term debt obligations.
However, the nature of its business is subject to complex federal, state and other regulations. Unfavorable weather conditions and an increase in supply costs adversely impact earnings.
(You can read the full research report on NextEra Energy here >>>)
Amgen shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+17.2% vs. -40.1%). The company’s key drugs like Prolia, Repatha and Xgeva are driving sales. Amgen is rapidly advancing its robust pipeline of early and late-stage assets. New drugs Lumakras and Tezspire, are off to an encouraging start.
Label expansion studies on Lumakras are progressing rapidly. The acquisition of ChemoCentryx, if successfully closed, will add a strategic new growth asset in Tavneos to Amgen’s portfolio. Amgen boasts a strong biosimilars portfolio with potential new products expected to drive long-term growth.
However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products including some biosimilars. Also, increasing competition for its legacy products is hurting the sales. The IRS tax litigation is an overhang on Amgen shares.
(You can read the full research report on Amgen here >>>)
Other noteworthy reports we are featuring today include Canadian National Railway Co. (CNI), 3M Co. (MMM), and Itaú Unibanco Holding S.A. (ITUB).
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) Rides on 5G Footprint and Customer Growth
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
Amgen (AMGN) New Drugs Off to Good Start; Pipeline Strong
Canadian National's (CNI) Dividends Support, Fuel Costs Hurt
The Zacks analyst welcomes Canadian National's efforts to add shareholder value. However, high operating expenses, mainly due to escalated fuel costs, are worrisome.
End-Market Strength Backs 3M (MMM) Amid Supply Chain Woes
Per the Zacks analyst, strong demand across the abrasives, industrial adhesives, factory automation and automotive end markets are supporting 3M's growth despite supply chain and cost headwinds.
Expansion Strategy Aids Itau (ITUB) Despite Rising Expenses
Per Zacks analyst, Itau's (ITUB) diversified portfolio, expansion strategy and solid liquidity position might support its growth. Yet, rising costs and the stressed Brazilian economy are concerning.
Sysco (SYY) to Keep Gaining From Recipe for Growth Program
Per the Zacks analyst, Sysco's Recipe for Growth has been aiding. This includes enhancing customers' experience via digital tools; improving supply chain and having team-based selling among others.
Vulcan (VMC) Rides on Strategic Initiatives Amid High Costs
Per the Zacks analyst, focus on strategic initiatives, Commercial Excellence, Operational Excellence, Strategic Sourcing and Logistics Innovation, aid Vulcan amid high diesel fuel costs and inflation.
Solid Segmental Results Aid Syneos (SYNH) Amid Forex Woes
The Zacks analyst is encouraged by Syneos' strong sales results in the Clinical Solutions and Commercial Solutions arms. Yet, unfavorable foreign exchange movements affect the company's operations.
Science Applications (SAIC) Rides on Contract Wins, Buyouts
Per the Zacks analyst, Science Applications is benefiting from new contracts supporting IT modernization. Moreover, strategic acquisitions like Halfaker and Associates bode well for growth.
Solid Top Line, Strong Cash Flows Aid American Financial (AFG)
Per the Zacks analyst, its strong revenues driven by higher net investment income, net earned premiums have led to significant growth. Moreover, its healthy balance sheet should drive long-term growth
NOV Inc. (NOV) to Benefit from Large Installed Base of Rigs
The Zacks analyst believes that NOV's large installed base of rigs worldwide will provide a steady recurring revenue stream driven by demand for maintenance, parts and other expendable products.
RPC (RES) to Benefit From Increased Oilfield Activities
Per the Zacks analyst, RPC is well-positioned to benefit from increasing oilfield activities in its industry, as the favorable commodity price scenario has driven upstream investments.
Maximus (MMS) Remains Troubled by Depressed Current Ratio
Per the Zacks analyst, Maximus persistently suffers a lower current ratio. The company's current ratio at the end of the June quarter was pegged at 1.47, lower than the prior-year quarter's 1.52.
Supply Chain Disruptions & Higher Costs to Hurt Ciena (CIEN)
Per the Zacks analyst, pandemic induced supply chain troubles continue to be a major headwind for Ciena. Increase in component costs and logistics expenses are other concerns.
Escalating Costs & High Debts Hurt Community Health (CYH)
Per the Zacks analyst, the company's high costs can put margins under pressure. Rising debts remain a concern as it leads to escalated interest expenses.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
Canadian National Railway Company (CNI) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
Itau Unibanco Holding S.A. (ITUB) : Free Stock Analysis Report
TMobile US, Inc. (TMUS) : Free Stock Analysis Report
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