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Top Stock Reports for Walmart, AT&T & Tesla

Sheraz Mian

Tuesday, February 04, 2020

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 Walmart Inc. (WMT), AT&T Inc. (T) and Tesla, Inc. (TSLA). 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 >>>

Walmart’s shares have outperformed the Zacks Retail - Supermarkets industry over the past one-year period (+19.6% vs. +16.0%) and the Zacks analyst believes that Walmart’s shares have outpaced the industry in the past year, backed by focus on strengthening e-commerce and store operations. These factors helped the company retain its sturdy comps trend in third-quarter fiscal 2020, wherein earnings marked its seventh straight beat and U.S. comps rose for the 21st straight time.

The company, by the way, is making efforts to improve its International unit by shifting focus to profitable countries. However, Flipkart’s addition was a drag on Walmart’s bottom line, which is expected to continue in fiscal 2020. This along with a compelling pricing strategy and tariff-related worries is a threat to margins.

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

Shares of AT&T have gained 24.7% in the past one-year period against the Zacks Wireless National industry’s rise of 17.8%. The Zacks analyst believes that the company remains committed to its three-year financial framework, which is expected 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 2020. AT&T anticipates gaining a competitive edge over rivals through edge computing services and healthy dividend payout.

However, the company 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.

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

Tesla’s shares have outperformed the Zacks Automotive – Domestic industry over the past one-year period (+142.7% vs. +45.0%). The Zacks analyst believes that with Model 3 sedan being its flagship vehicle, Tesla has established itself as a leader in the EV segment. Rising Model 3 delivery, which forms bulk of the automaker’s overall deliveries, is aiding the company’s top-line growth. Tesla’s upcoming product launches, including Model Y and Semi Truck, are expected to further boost prospects.

However, with China being an important market for Tesla, economic slowdown in the country is weighing on the firm. Tesla’s massive debt and high capex also play spoilsports.

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

Other noteworthy reports we are featuring today include Royal Dutch Shell plc (RDS.A), General Motors Company (GM) and Verizon Communications Inc. (VZ).

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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

Walmart's (WMT) Superb U.S. Comps Trend to Fuel Top-Line

AT&T (T) Likely to Benefit From 3-Year Financial Framework

Tesla's (TSLA) Model 3 Aids Sales Amid Weak Model S/X Demand

Featured Reports

Royal Dutch Shell (RDS.A) to Gain from Growing LNG Demand

The Zacks analyst believes that Shell's position as a major supplier of LNG should help the company to improve cash flow in the future.

Cost Reduction Buoys Waste Management (WM) Amid Debt Woes

Per the Zacks analyst, cost-reduction initiatives help Waste Management to accomplish remarkable gross margin expansion and EBITDA growth.

General Motors (GM) to Ride on High SUV Demand Amid Tariffs

Healthy demand for trucks, SUVs & crossovers is boosting General Motors' sales. However, the Zacks analyst is concerned over tariff woes in China as GM commands a sizable market share in the region.

Verizon (VZ) Rides on Wireless Strength, Video Content Focus

Per the Zacks analyst, focus on online content delivery, mobile video and online advertising along with strength in wireless business with 5G deployments will likely stoke future growth for Verizon.

Strategic Initiatives Aid Aon (AON), Rising Debts Hurt

Per the Zacks analyst, a number of acquisitions and collaborations have helped Aon enhance its capabilities, which has in turn improved its bottom-line.

IDEXX's (IDXX) Catalyst Uptake Remains Strong, Drives CAG

Per the Zacks analyst, the solid organic growth trend within IDEXX's Companion Animal Group (CAG) revenues will sustain on strong global placement of high-premium Catalyst instruments.

Backlog & Government Services Aid KBR Amid High Competition

Per the analyst, robust backlog, continuous acquisitions and the strength of its Government Services segment will drive growth.

New Upgrades

Label Expansion of Soliris, Ultomiris Drive Alexion (ALXN)

Per the Zacks analyst, label expansion of blockbuster drug Soliris and strong uptake of Ultomiris drive growth for Alexion. The company's efforts to develop its pipeline are encouraging as well.

Strong Cloud Business & Expanding S/4HANA Clientele Aid SAP

Per the Zacks analyst, SAP's resilient Cloud and Software business, act as staple growth drivers. Solid adoption of S/4HANA and other cloud-based offerings have been supporting the company's top line.

Loan Growth Aids UMB Financial (UMBF), Capital Level Solid

Per the Zacks analyst, organic growth remains a key strength at UMB Financial. Higher revenues reflect improving loan and deposit balances. Further, strong capital base is a favorable factor.

New Downgrades

Weak Demand, Turnaround Costs to Hurt Dow (DOW)

Per the Zacks analyst, soft demand in certain markets including agriculture and automotive will hurt Dow's volumes. Higher turnaround costs related to maintenance outages will also weigh on margins.

High Debt Levels, Stringent Competition Hurts Textron (TXT)

Per the Zacks Analyst, Textron's high debt levels can turn out be a major headwind for the company, going forward. Furthermore, it faces stiff market competition due to peer price pressure.

Ligand's (LGND) Overdependence on Partners Raises Concern

Per the Zacks analyst, Ligand is highly dependent on its partners for revenues that pays royalties on sales of drugs developed using the company's Captisol technology.


Walmart Inc. (WMT) : Free Stock Analysis Report

Verizon Communications Inc. (VZ) : Free Stock Analysis Report

Tesla, Inc. (TSLA) : Free Stock Analysis Report

AT&T Inc. (T) : Free Stock Analysis Report

Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report

General Motors Company (GM) : Free Stock Analysis Report

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