Thursday, July 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 Verizon Communications (VZ), SAP SE (SAP) and PetroChina Company (PTR). 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 >>>
Shares of Verizon have underperformed the Zacks Wireless National industry in the year-to-date period (-2.5% vs. +2.9%). The Zacks analyst, however, believes that Verizon is likely to benefit from a disciplined network strategy, including accelerated 5G deployment despite economic uncertainties stemming from the ongoing pandemic.
The telecom giant plans to cover more than 175 million people between 2022 and 2023. Its disciplined network strategy for long-term sustainable growth, along with operational execution, is noteworthy. However, Verizon operates in an intensely competitive U.S. wireless market that strains margins. Also, hefty expenses on promotion and lucrative discounts to attract customers further hamper its profitability.
(You can read the full research report on Verizon here >>>)
SAP’s shares have gained +10.2% over the last six months against the Zacks Computer Software industry’s gain of +21.4%. The Zacks analyst believes that SAP is benefiting from robust uptake of S/4HANA, and SuccessFactors Employee Central solutions. Momentum witnessed by Ariba and Fieldglass solutions is also noteworthy.
Further, SAP’s alliances with IBM, Microsoft, Accenture and Verizon favor business prospects. Solid demand for e-commerce, digital supply chain and other cloud platform solutions, augurs well in the long run. However, soft uptake of software licenses and support offerings remains a headwind. Further, reduction in business travel due to pandemic is likely to weigh on Concur-related revenues.
(You can read the full research report on SAP here >>>)
Shares of PetroChina have gained +42.4% in the past three months against the Zacks International Integrated Oil industry’s gain of +7.4%. The Zacks analyst believes that with higher energy production and lower lifting costs supporting the company’s exploration and production segment, the stock is likely to gain further.
Meanwhile, PetroChina is also well-positioned to capitalize on China’s growing natural gas demand. The company’s natural gas business offers lucrative growth prospects in the coming years as China moves from coal to natural gas. Notably, PetroChina’s upstream unit witnessed a growth of 4.1% in production in 2020.
(You can read the full research report on PetroChina here >>>)
Other noteworthy reports we are featuring today include Target (TGT), Moderna (MRNA) and General Motors (GM).
Zacks Names “Single Best Pick to Double”
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You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
5G Strength, Partnerships Drive Verizon (VZ) Amid Competition
Growth in S/4HANA Platform & Cloud Initiatives Benefit SAP
Higher Production, Lower Costs to Aid PetroChina (PTR)
Featured Reports
Target’s (TGT) Omnichannel & Store Expansion to Boost Sales
Per the Zacks analyst, Target’s focus on enhancing omnichannel capacities,and expanding same-day delivery options are likely to fuel top-line growth.
Moderna’s (MRNA) COVID-19 Vaccine Promising Amid Competition
Per the Zacks analyst, Moderna’s rapid progress with it is boosting its prospects. It expects to generate $19 billion from vaccine sales.
General Motors (GM) to Thrive on Aggressive EV Plans
The Zacks analyst is bullish on General Motors’ $35 billion investment plan on electric and autonomous vehicles, deal with Wabtec and its Ultium Drive system which is set to boost its e-mobility game.
Strong Medicare Business Aid Humana (HUM), High Costs Hurt
Per the Zacks analyst, solid Medicare business has helped the company expand its business, which in turn, has led to top-line growth.
Allstate (ALL) Rides on Strong Property-Liability Segment
Per the Zacks analyst, premium increase in the Property-Liability Segment remains strong owing to pricing discipline and strong claims management that has contributed to topline growth.
Equifax (EFX) Gains from Product Innovation, Debt Woes Ail
The Zacks analyst believes that synergies from acquisitions, product innovation, and efficient business executions will continue to drive Equifax’s revenues.
Permian Basin Focus, Cost Management Aid Occidental (OXY)
Per the Zacks analyst, Occidental’s acquisition of Anadarko expanded its operation in the resource-rich Permian Basin and efficient cost management will drive its performance over the long run.
New Upgrades
Growing Customer Base & Partnerships Aid ServiceNow (NOW)
Per the Zacks analyst, ServiceNow benefits from rising adoption of its workflows from companies undergoing digital transformation. Also, strategic alliances with the likes of Microsoft are a tailwind.
Agilent Technologies (A) Banks on Strength in LSAG Segment
Per the Zacks analyst, strength across cell analysis, liquid chromatography, and mass spectrometry is driving growth in Agilent Technologies’ Life Sciences & Applied Markets Group (LSAG) segment.
Robust End Markets & Solid Cash Flows to Drive Crane (CR)
Per the Zacks analyst, Crane is experiencing strength across its chemical, pharmaceutical, and general industrial end markets. Also, the company’s strong cash flow is likely to be favorable.
New Downgrades
Increased Operating Costs Hurt Pool Corp (POOL) Prospects
Per the Zacks analyst, Pool Corp is likely to have been negatively impacted by increased expenses on account of labor, delivery, and investments in information technology systems and hardware.
High Costs, Concentration Risk Hurt Hercules Capital (HTGC)
Per the Zacks analyst, Hercules Capital’s efforts to expand originations will likely lead to higher costs, thus hurting profits. The company lacks global diversification, which makes us apprehensive.
Weak End-Markets & Higher Costs to Hurt TriMas (TRS)
The Zacks analyst is concerned that TriMas’ results will continue to be impacted by pandemic-induced lower air travel, weak volumes in the Specialty Products segment, and higher commodity costs.
Verizon Communications Inc. (VZ): Free Stock Analysis Report
Target Corporation (TGT): Free Stock Analysis Report
SAP SE (SAP): Free Stock Analysis Report
PetroChina Company Limited (PTR): Free Stock Analysis Report
Moderna, Inc. (MRNA): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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