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The Zacks Analyst Blog Highlights: Facebook, Wells Fargo, AT&T, Intel and Glaxo

Zacks Equity Research
Amkor (AMKR) prices senior notes aggregating $525 million due 2027.

For Immediate Release

Chicago, IL –January 3, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Facebook FB, Wells Fargo WFC, AT&T T, Intel INTC and Glaxo GSK.

Here are highlights from Wednesday’s Analyst Blog:

Top Research Reports for Facebook, Wells Fargo and AT&T

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 Facebook, Wells Fargo and AT&T. 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 >>>

Buy-ranked Facebook’s shares have underperformed the S&P 500 index over the past three months, declining -19.3% vs. -14.2%. The Zacks analyst thinks Facebook continues to benefit from mobile ad growth. The company intends to cash in on the ever-increasing trend of video viewing on social media platforms through Watch.

Facebook’s effort to add new features on Instagram, Watch and Messenger are noteworthy. Robust user base on WhatsApp and Instagram is expected to fuel top-line for the company in the near-term. Facebook’s expanding footprint in developing countries is a positive. Moreover, the company’s effort to curb misuse of its platform is a tailwind.

However, aggressive investments for the initiatives related to improving ad transparency, removal of fake accounts and curbing fake news is expected to hurt profitability in the near term. Further, the company is expected to lose some ad impression opportunities due to its focus on growth of Stories on the core Facebook app. This is expected to negatively impact top-line growth.

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

Shares of Wells Fargo have underperformed the Zacks Major Regional Banks industry over the past six months (-17% vs. -13.5%). Also, the company possesses a disappointing earnings surprise history, having beaten expectations in only one of the trailing four quarters.

The Zacks analyst notes that following the sales scandal and other issues, Wells Fargo has been slapped with new sanctions, including a cap on the assets position by the Federal Reserve. Also, the company’s reputation, which has been harmed by the involvement in several legal issues and malpractices, might take some time to improve.

However, its ongoing investment in the businesses — aimed to enhance the compliance and risk management capability, build a better bank and strengthen core infrastructure — bodes well. Recently, as a silver lining, the bank was able to settle the fake account scandal related lawsuit filed by the shareholders and investigations by about 50 states, enabling it to focus on improving performance.

(You can read the full research report on Wells Fargo here >>>).

AT&T’s shares have decreased -24.2% in the past year, underperforming the Zacks Wireless National industry's decline of -7.6%. The Zacks analyst likes how AT&T is ramping up its FirstNet program and revamping its lineup of video products, pricing and promotion initiatives. The company is offering 5G devices over commercial mobile 5G network in multiple U.S. markets from December.

AT&T has also updated its guidance for 2019 following the acquisition of WarnerMedia. It now expects significant growth in free cash flow, which should help it achieve the target of debt ratio in the 2.5x range by the end of 2019 and a low single digit growth rate in adjusted EPS. AT&T is facing a steady decline in linear TV subscribers and legacy services.

The company’s wireline division is facing losses in access line due to competitive pressure from voice-over-Internet protocol service providers. As AT&T tries to woo customers with discounts, freebies and cash credits, margin pressures tend to escalate.

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

Other noteworthy reports we are featuring today include Intel and Glaxo.

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See Zacks' 3 Best Stocks to Play This Trend >>

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Wells Fargo & Company (WFC) : Free Stock Analysis Report
 
Facebook, Inc. (FB) : Free Stock Analysis Report
 
GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
 
AT&T Inc. (T) : Free Stock Analysis Report
 
Intel Corporation (INTC) : Free Stock Analysis Report
 
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