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 Linde plc (LIN), Verizon Communications Inc. (VZ) and AT&T Inc. (T). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Linde’s shares have outperformed the Zacks Chemical – Specialty industry over the past two years (+35.9% vs. -0.6%). The Zacks analyst believes that Linde’s long-term contracts with key on-site clients featuring minimum purchase agreements have helped stabilize earnings during economic downturns. Also, a robust business model has ensured that it has continued to reward its shareholders with dividends.
However, increasing competition for new projects and volatility of energy prices, particularly for natural gas and diesel fuel, presents a significant concern for profitability.
(You can read the full research report on Linde here >>>)
Verizon’s shares have underperformed the Zacks Wireless - National industry over the last six months (+1.5% vs. +25.4%). The Zacks analyst believes that lower wireline and wireless equipment revenues are major concerns for the company. Huge promotional expenses, lucrative discounts to expand the customer base, high capital expenditures for continuous network upgrades and fiber deployment are also acting as major headwinds.
Yet, customer-focused planning and disciplined engineering and steady infrastructure investments have helped. Also, by pioneering new technologies, Verizon is well-positioned to bridge the digital divide and enhance the connectivity landscape nationwide.
(You can read the full research report on Verizon here >>>)
Shares of AT&T have outperformed the Zacks Wireless - National industry over the last six months (+28.7% vs. +25.4%). Per the Zacks analyst, the company is likely to benefit from the increased deployment of mid-band spectrum and greater fiber densification. A planned commercial-scale open radio access network across the country will also help build a more robust ecosystem of network infrastructure providers and suppliers.
However, steady decline in linear TV subscribers and legacy services is a potent headwind. Healthy discounts and freebies to woo customers bring down margins. Debt burden is high.
(You can read the full research report on AT&T here >>>)
Other noteworthy reports we are featuring today include NVIDIA Corp. (NVDA), Canadian Natural Resources Ltd. (CNQ) and Monster Beverage Corp. (MNST).
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
Linde's (LIN) Long-Term Contracts With Minimum Volume Aid
AT&T (T) to Gain From Fiber Densification, Open RAN Network
Verizon (VZ) Rides on Wireless Traction, Solid Customer Adds
Featured Reports
BEAM's Gene-Therapy Pipeline Holds Promise Amid Competition Per the Zacks analyst, BEAM's lead candidate, BEAM-101, a base-editing therapy being developed to treat two rare diseases, holds promise. However, stiff competition in the target market remains a woe.
Investments & Renewable Expansion Aid Eversource Energy (ES) According to the Zacks analyst, Eversource Energy's investment of $23.7 billion through 2028 should further enhance infrastructure, and expanding renewable operations should boost its performance.
Monster Beverage (MNST) Sees Strength in Energy Drinks Unit Per the Zacks analyst, Monster Beverage has been experiencing continued strength in its energy drinks category, which is driving performance. The company offers a wide range of energy drink brands.
Robust Mask Sales Aid ResMed (RMD) Amid Macro Issues The Zacks Analyst is impressed with ResMed's growing demand for its market-leading mask portfolio. Yet, macroeconomic woes in the form of escalating operating expenses dent profit.
Diverse Production Mix to Aid Canadian Natural (CNQ) The Zacks analyst believes that Canadian Natural's diverse product mix supports long-term value and mitigates risk but is worried about the company's debt maturities each year out till 2027.
Solid Bookings & Fleet Expansion to Aid Norwegian Cruise (NCLH) Per the Zacks analyst, Norwegian Cruise is likely to benefit from robust booking trends, fleet expansion and strategic partnerships. Also, strength in consumer onboard spending bodes well.
Strength Across Banners Drive Ross Stores (ROST) Sturdy Comps Per the Zacks analyst, Ross Stores continues to gain from positive customer response for its merchandise across both banners, which has been boosting the comps performance. Comps improved 4% in Q2.
New Upgrades
NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Per the Zacks analyst, rapid adoption of NVIDIA's GPUs in the gaming and data center end markets is a key growth driver. Partnership with companies like Arrow, Baidu, Daimler and Bosch is a tailwind.
Strong Execution Services Unit Aids Virtu Financial (VIRT) The Zacks Analyst believes that product developments and new deals in Execution Services will continue to drive Virtu Financial's revenues. Also, debt reduction will boost its financial flexibility.
Acquisitions, Revival of IB Business Aid Raymond James (RJF) Per the Zacks analyst, strategic acquisitions, the resurgence of investment banking (IB) business, a strong balance sheet and global reach will support Raymond James' revenues.
New Downgrades
Clean Harbor (CLH) Faces Headwinds From Increasing Expenses Per the Zacks analyst, increasing SG&A expenses due to higher labor and benefit-related costs are creating headwinds for Clean Harbor's bottom line. Seasonality is an overhang.
Challenges in European Market, High Debt to Ail Adient (ADNT) Per the Zacks analyst, challenges in the European market are likely to hit Adient's top-line growth in fiscal 2025. The high debt level is also concerning.
High Debt Levels & Low Demand to Hurt OI Glass (OI) Per the Zacks analyst, low volumes reflecting weak demand and OI Glass' production curtailment efforts will hurt its near-term results. Its elevated debt levels is also worrisome.
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