Top Analyst Reports for Tesla, Intel & Verizon
Monday, March 1, 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 Tesla (TSLA), Intel (INTC) and Verizon Communications (VZ). 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 >>>
Tesla shares have outperformed the Zacks Domestic Automotive industry over the past year (+354.2% vs. +211.4%). The Zacks analyst believes that Tesla has a first-mover advantage in the e-mobility space with high range vehicles, superior technology and a software edge.
Robust Model 3/Y demand, Shanghai Gigafactory prospects, amazing line-up of upcoming products and aggressive expansion efforts bode well for the firm. Importantly, Tesla posted its sixth consecutive quarterly profit in Q4. However, an unclear 2021 vehicle delivery target raises concerns.
As it is, the firm’s high operating costs, as well as massive capex owing to heavy investments related to the construction of gigafactories, along with development of battery tech, might strain near-term financials. Waning margins for Model S/X and lofty valuation of the firm are other concerns.
(You can read the full research report on Tesla here >>>)
Shares of Intel have gained +16.3% in the last six months against the Zacks General Semiconductor industry’s gain of +8.4%. The Zacks analyst believes that Intel is well-poised to benefit from increasing demand for its 10 nanometer (nm) SuperFin process-based 11th Gen core processors.
Further, Mobileye growth is projected to be driven by design-win momentum and stabilizing the automotive industry through 2021. Nevertheless, sluggish data center demand across cloud service providers, enterprise and government end-markets is likely to weigh on the top-line performance, at least in the near term.
Declining average selling price (ASPs) and weakness in Internet of Things (IoT) end-markets remain headwinds. Also, production delays pertaining to 7 nm ramp-up remain concerns.
(You can read the full research report on Intel here >>>)
Verizon’s shares have lost 9.9% over the past three months against the Zacks Wireless National industry’s loss of 7.8%. The Zacks analyst believes that Verizon is likely to benefit from a disciplined network strategy, including accelerated 5G deployment despite economic uncertainties stemming from the COVID-19 crisis.
The company is aiming to augment its mid-band spectrum capacity and has emerged as the largest bidder, with $45.5 billion worth of bids in the recently-concluded C-Band spectrum auction. The acquisition of incubed IT will enable it to develop new business opportunities for enterprises and scale up robotic automation.
However, Verizon operates in an intensely competitive U.S. wireless market that strains margins. Adoption of unlimited data plans has resulted in reduction of wireless service revenues. Hefty expenses on promotion and lucrative discounts to attract customers further hampers its profitability.
(You can read the full research report on Verizon here >>>)
Other noteworthy reports we are featuring today include Novartis (NVS), Costco Wholesale (COST) and Intuit (INTU).
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Mark Vickery
Senior Editor
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
Tesla (TSLA) to Ride on Shanghai Gigafactory Amid High Capex
Intel (INTC) Rides on Portfolio Strength Amid 7 nm Delay
Verizon (VZ) Ramps Up Mid-Band Spectrum for 5G Impetus
Featured Reports
New Drugs Fuel Novartis (NVS) Amid Coronavirus Slowdown
Per the Zacks analyst, Cosentyx and Entresto along with Zolgensma boost Novartis. However, the dermatology, ophthalmology and Sandoz retail businesses are being hit by the ongoing pandemic.
Decent Comps Run to Fuel Costco's (COST) Sales, Cost a Concern
Per the Zacks analyst, Costco's growth strategies, decent comps run and solid membership trend are likely to fuel sales.
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Per the Zacks analyst, Intuit is benefiting from frequent product refreshes, which help it to gain customers.
Digital Investments Brighten AB InBev's (BUD) Growth Prospects
Per the Zacks analyst, AB InBev's investments in B2B platforms, e-commerce channels and digital marketing has been aiding growth in the past few months.
Robust Pharmaceutical Wholesale Arm Aids Walgreens Boots (WBA)
The Zacks analyst is upbeat about Walgreens Boots' consistent solid performance by the Pharmaceutical Wholesale arm.
Regulated Investments & Cost Mangement Aid Exelon (EXC)
Per the Zacks analyst Exelon's cost management initiatives will have positive impact on margins and its planned $26.7B investments through 2024 will strengthen its operation.
Mine Expansions to Aid Wheaton (WPM) Amid Production Woes
Per the Zacks analyst, Wheaton will benefit from focus on mine-expansion activities despite weaker production resulting from the impacts of the pandemic.
New Upgrades
Xerox (XRX) Rides on Project Own It Transformation Program
The Zacks analyst believes that Xerox's bottom line has been benefiting from Project Own It, intended to increase productivity and operational efficiency, reduce costs and realign business.
FTI Consulting (FCN) Benefits from a Diversified Client Base
Per the Zacks analyst, industrial and geographical diversification of customer base helps FTI Consulting to grow its top line and mitigate the risk of incurring material losses.
Expansion of Non-Mortgage Products Aids LendingTree (TREE)
Per the Zacks analyst, LendingTree has widened loan offerings to credit cards, personal, auto, small business and student loans, beyond the mortgage-related source of revenues are major tailwinds.
New Downgrades
Elevated Expenses Likely to Mar Palo Alto's (PANW) Margins
Per the Zacks analyst, increased investment toward enhancing sales & marketing capabilities and higher sales incentives is likely to dampen Palo Alto's margins.
Strategic Buyouts Aid Raymond James (RJF), High Costs Ails
Per the Zacks analyst, Raymond James' efforts to expand through strategic acquisitions and global diversification will aid financials.
Fall in Orders, Supply Chain Disruptions Hurt Cogent (CCOI)
Per the Zacks analyst, Cogent is facing severe challenges due to a significant decline in customer orders, supply chain disruptions, lower corporate installs and reduced customer connections.
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Novartis AG (NVS) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
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