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The Zacks Analyst Blog Highlights: AT&T, Exxon Mobil, Nike, Boeing and Cognizant Technology Solutions

Zacks Equity Research

For Immediate Release

Chicago, IL – March 11, 2020 – 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: AT&T Inc. T, Exxon Mobil Corp. XOM, Nike, Inc. NKE, The Boeing Company BA and Cognizant Technology Solutions Corporation CTSH.

Here are highlights from Tuesday’s Analyst Blog:

Top Stock Reports for AT&T, Exxon Mobil and Nike

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., Exxon Mobil Corp. and Nike, Inc. 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 >>>

AT&T’s shares have outperformed the Zacks Wireless National industry over the past one-year period (+14.8% vs. +5.6%). AT&T’s wireless growth opportunities with the widespread launch of mobile 5G services in 2019 remain impressive. Incremental contribution from WarnerMedia and Xandr segments also bode well.

However, the company is witnessing a steady decline in linear TV subscribers and legacy services. Its wireline division is also facing loss in access line due to competitive pressure from VoIP service providers. As AT&T tries to woo customers with discounts, freebies and cash credits, margin pressures tend to soar.

Exxon Mobil’s shares have declined 40% so far this year against the Zacks Oil and Gas - Integrated – International industry’s fall of 38.6%. Exxon Mobil witnessed significantly lower earnings from its downstream & chemicals businesses in 2019. With no near-term resurgence in demand in the horizon, the business segments’ performances are not expected to improve anytime soon.

However, the company’s bellwether status in the energy space, optimal integrated capital structure that has historically produced industry-leading returns and management’s track record of capex discipline across the commodity price cycle make it a relatively lower-risk energy sector play.

Nike’s shares have declined 17% on a year-to-date basis against the Zacks Shoes and Retail Apparel industry’s fall of 18.3%. Shares of Nike have declined year to date as analysts are concerned about the coronavirus outbreak in china and its effects on Nike’s results. The company, in February, temporarily closed nearly half of company-owned stores in Greater China, which should hurt its results. Moreover, concerns related to higher operating costs, tariffs and foreign currency may hurt performance in the near term.

However, it reported strong second-quarter fiscal 2020 results gaining from the execution of Consumer Direct Offense, and strength in Wholesale and Nike Direct businesses. It expects brand recognition, robust innovation and positive response from Nike Direct and wholesale partners to aid results in fiscal 2020.

Other noteworthy reports we are featuring today include The Boeing Company and Cognizant Technology Solutions Corporation.

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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.