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Top Stock Reports for AT&T, SAP & Advanced Micro Devices

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·6 min read
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Wednesday, May 19, 2021

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 AT&T Inc. (T), SAP SE (SAP), and Advanced Micro Devices, Inc. (AMD). 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 AT&T broadly tracked the market this year, but have lost ground meaningfully following the recent announcement to spin off its media assets and merge them with the  complementary assets of Discovery.

The Zacks analyst believes that the transaction will enable the company to focus on core operations, reduce huge debt burden and unlock value by monetizing assets in order to augment its network infrastructure throughout the country. The company expects this holistic growth policy to add significant customer value and generate healthy ROI across the business.

AT&T has also unveiled a comprehensive 5G strategy and reaffirmed its guidance for 2021. However, the company is facing a steady decline in linear TV subscribers, legacy services and wireline division. As it tries to woo customers with discounts and freebies, margins tend to fall. Spectrum crisis in a saturated wireless market and continued cord-cutting remain major headwinds.

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

Shares of SAP have outperformed the Zacks Computer - Software industry in the last three-month period (+9.7% vs. +2.9%). The Zacks analyst believes that the company is benefiting from robust uptake of S/4HANA, and SuccessFactors Employee Central solutions. Momentum witnessed by Ariba and Fieldglass solutions is also noteworthy.

SAP's alliances with IBM, Microsoft, Accenture and Verizon favor business prospects. Solid demand for e-commerce, digital supply chain and other cloud platform solutions, augurs well over the longer haul. SAP's performance is also likely to gain from healthy contribution from Sapphire Ventures.

However, soft uptake of software licenses and support offerings remains a headwind. Further, reduction in business travel due to pandemic are anticipated to impact Concur-related revenues, at least in the near term. Besides, rise in investments to enhance cloud-based offerings are likely to weigh on margins.

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

Shares of Advanced Micro Devices have gained +32.0% in the past one-year period against the Zacks Electronics – Semiconductors industry’s gain of +52.5%. Although, shares of AMD have underperformed the industry over the past year, the Zacks analyst believes that growing clout of 7 nanometer (nm) products in the data center vertical, driven by work-from-home and online learning trends, is a key catalyst.

AMD is benefiting from sales of its Ryzen and EPYC server processors, courtesy of increasing proliferation of Artificial Intelligence (AI) and Machine Learning (ML) in industries like cloud gaming and supercomputing domain. Further, the Xilinx acquisition is anticipated to boost AMD's data center business.

Moreover, alliances with Amazon, Microsoft, Baidu and JD.com augment business prospects. Nevertheless, increasing investments on product development amid intense competition from NVIDIA and Intel are likely to dent margins at least in the near term.

(You can read the full research report on Advanced Micro Devices here >>>)

Other noteworthy reports we are featuring today include Royal Dutch Shell plc (RDS.A), Snap Inc. (SNAP) and Capital One Financial Corporation (COF).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Sheraz Mian

Director of Research

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

AT&T (T) Monetizes Non-Core Assets to Focus on Core Business

Growth in S/4HANA Platform & Cloud Initiatives Benefit SAP

AMD Banks on Strength in Product Portfolio Amid Competition

Featured Reports

Shell (RDS.A) Aided by LNG Demand Amid Production Woes

The Zacks analyst believes that Shell's position as a major supplier of LNG should benefit its long-term cash flow growth but is worried over the decline in its hydrocarbon production.

Solid User Growth & Premium Content Demand Aids Snap (SNAP)

Per the Zacks analyst, Snap benefits from an improving user growth driven by strong adoption of Augmented Reality (AR) Lenses and demand for premium Discover content and Shows.

Credit Card Business Aids Capital One (COF) Amid Low Rates

Per the Zacks analyst, while low rates are expected to continue to hurt Capital One's top line; its solid card and online banking business, along with inorganic growth efforts will provide support.

Approval to New Drugs Pare Sarepta's (SRPT) Exondys Dependence

Per the Zacks analysts, FDA's approval to Sarepta's new DMD drugs, Vyondys 53 and Amondys 45, should help the company to reduce its dependence on key marketed DMD drug, Exondys 51, for growth.

Clean Energy Investments, Customer Growth Aid IDACORP (IDA)

Per the Zacks analyst IDACORP's systematic investment to produce more electricity from clean sources to meet rising demand of its expanding customer base will drive its performance.

Roger Buyout Drives FLEETCOR (FLT), High Expenses Hurt

The Zacks Analyst is positive about Roger's acquisition that enhances FLEETCOR's portfolio of accounts payable automation solutions to small businesses.

Brinker (EAT) Banks on Expansion Initiatives, Traffic Dismal

Per the Zacks analyst, Brinker's expansion plans and its sales building efforts bode well. However, dismal traffic on account of capacity limitations and weak sales at Maggiano's, remains a concern.

New Upgrades

Macy's (M) to Keep Benefitting from Strong Digital Sales

Per the Zacks analyst, Macy's efficient omni-channel services, such as same-day delivery, have been supporting its top-line. The company is making investments to further enhance digital capabilities.

Permian Basin to Drive Targa Resources (TRGP) Growth

The Zacks analyst believes that Targa Resources' possession of one of the largest gathering and processing positions in the prolific Permian Basin will enhance its growth potential.

Acquisitions & Restructuring Efforts to Buoy Goodyear (GT)

Goodyear's impending acquisition of Cooper Tire and restructuring program in the United States and Germany are set to strengthen the firm's position in the global tire space, per the Zacks Analyst.

New Downgrades

Supply Shortages & Debt Burden Impair Plantronics (PLT)

Per the Zacks analyst, apart from the huge debt burden, tightness in its supply chain due to the semiconductor chip shortage is expected to hurt Plantronics' revenues in the near term.

High Costs Supress MarketAxess' (MKTX) Margins

Per the Zacks analyst, increasing expenses have weighed on the company's margins, and the same are expected to rise over the coming quarters given its ongoing investments in business expansion.

Pandemic Disorder Lowers Plasma Sales for Haemonetics (HAE)

The Zacks analyst is worried about Haemonetics witnessing significant sales decline in Plasma and Blood Center businesses. Pandemic-led adverse volume and pricing scenario remain as major concerns.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AT&T Inc. (T) : Free Stock Analysis Report
Snap Inc. (SNAP) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
Capital One Financial Corporation (COF) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
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