Top Research Reports for Home Depot, Starbucks & T-Mobile

Mark Vickery

Monday, June 17, 2019

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 Home Depot (HD), Starbucks (SBUX) and T-Mobile (TMUS). 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 >>>

Home Depot’s shares have gained +21% over the past six months, outperforming the Zacks Retail Building Products industry’s +16.7% increase. The Zacks analyst thinks that this is attributable to a robust surprise trend that continued in first-quarter fiscal 2019. With this, it retained its five-year long trend of earnings beat, with positive sales surprise in nine of the last 11 quarters.

Results gained from strength in both Pro and DIY categories. The company’s efforts to provide an interconnected shopping experience to customers with localized and innovative products, and improved productivity also aided its quarterly performance.

However, the company reported soft comps in the fiscal first quarter, which lagged analysts’ expectations. Tough year-over-year comparisons owing to hurricane-related sales hurt comps. The company’s top-line performance in the first quarter was also hurt by adverse weather in February and deflation in lumber prices.

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

Shares of Starbucks are up +29.8% over the past six months, outperforming the Zacks Food & Restaurants industry, which is up +20.4% over the same period. The Zacks analyst thinks the momentum is likely to continue as the company reported solid second-quarter fiscal 2019 earnings and also raised its full-year view. Notably, earnings surpassed estimates in all of the trailing four quarters. Robust Americas and CAP comps too bode well.

Meanwhile, Starbucks' business is rapidly growing in China, courtesy of innovative store designs, local product innovations and the success of MSR program. Also, operating fundamentals such as solid global footprint, successful innovations, best-in-class loyalty program and digital offerings are encouraging.

Again, digital initiatives like mobile order/pay and delivery services can further stimulate robust sales trends. However, operating margin contraction over the past few quarters has been a major concern.

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

T-Mobile’s shares have outperformed the Zacks National Wireless industry over the past year, gaining +24.1% vs. +10.8%. T-Mobile received shareholder approval for its combination with Sprint. The Zacks analyst thinks this is a step forward in creating the New T-Mobile through which the wireless carrier intends to bring robust competition in the 5G era.

The New T-Mobile will have about 127 million customers and a strong closing balance sheet. T-Mobile has also collaborated with Ericsson and Nokia to accelerate the deployment of a nationwide 5G network. Its network expansion strategy continues to be superior to its rivals. However, a highly competitive and saturated U.S. wireless market remains a major headwind.

Intensifying competition is likely to limit its ability to attract and retain customers and may adversely affect operating results. T-Mobile launched several low-priced service plans which has enhanced its revenues but has failed to improve the bottom line significantly.

(You can read the full research report on T-Mobile here >>>).

Other noteworthy reports we are featuring today include Enterprise Products Partners (EPD), Aflac (AFL) and Ventas (VTR).

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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

Focus on Pro Customers to Aid Home Depot's (HD) Top Line


Starbucks' (SBUX) Strong Global Footprint to Drive Growth


T-Mobile (TMUS) Buoyed by Customer Additions Amid Competition


Featured Reports

Solid U.S. Segment Aids Aflac (AFL), Escalating Costs Hurt

Per the Zacks analyst, its robust U.S. segment backed by certain initiatives such as the adoption of Everwell and One Pay Day has contributed to its growth. However, high expenses remain a concern.

Ventas (VTR) Poised for Growth With Life-Science Assets

Per the Zacks analyst, Ventas' efforts to fortify its portfolio on the back of higher investments in life-science real estate look good. Yet, rising supply of senior housing assets remains a woe.

Domino's Pizza (DPZ) Rides on Robust International Sales

Per the Zacks analyst, Domino's remains committed to accelerate its presence in international markets. First-quarter 2019 marked the 101th straight quarter of positive international same-store sales.

UDR's Solid Portfolio Mix Amid Rising Supply Bodes Well

The Zacks analyst is optimistic about UDR Inc's properties in diverse sub-markets that offer a superior portfolio mix.

Parsley (PE) Aided by Permian Presence, Operating Costs Hurt

The Zacks analyst believes that growing oil production in Parsley's Permian Basin acreage should support its bottom line.

Strength in Service & Custodial Units Aid HealthEquity (HQY)

Per the Zacks analyst, strong growth in Service and Custodial segments boost HealthEquity.

Strategic Partnerships, Solid Portfolio Aid Stratasys (SSYS)

Per the Zacks analyst, Stratasys is gaining from strong demand for PolyJet and FDM technologies.

New Upgrades

Enterprise (EPD) to Ride on Baymark Ethylene Pipeline System

Per the Zacks analyst, Enterprise Products' Baymark ethylene pipeline will drive growth, given rapidly increasing ethylene production in the United States.

Strong Demand, Favorable Prices Aid Reliance Steel (RS)

The Zacks analyst thinks that the company is well placed to gain from strong demand across aerospace and automotive end-markets and a favorable metal pricing environment.

Resilient Business Model to Spur Ubiquiti (UBNT) Growth

Per the Zacks analyst, Ubiquiti's resilient business model will help it to continue its growth momentum, while expanding the addressable market and maintain its dominant foothold in the industry.

New Downgrades

Weak Brazilian Currency and Rising Costs Ail SABESP (SBS)

Per the Zacks analyst believes SABESP continues to suffer due to weakness of Brazilian currency against dollars and increasing expenses are also going to have an adverse impact on performance.

High Operating Costs & Tariffs Hurt WABCO (WBC)

Per the Zacks analyst, increased engineering expenses and raw material prices are elevating the operating expenses of WABCO. Also, the high tariffs are adding to its woes.

Ryanair (RYAAY) Hurt by High Labor Costs & Low Airfares

The Zacks analyst is worried about the escalated labor costs at Ryanair. Low airfares are also hampering the carrier's profitability.


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Ventas, Inc. (VTR) : Free Stock Analysis Report
 
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
 
Starbucks Corporation (SBUX) : Free Stock Analysis Report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
 
Aflac Incorporated (AFL) : Free Stock Analysis Report
 
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