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Top Research Reports for Intel, Verizon & Honeywell

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Monday, July 30, 2018

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 Intel (INTC - Free Report) , Verizon (VZ - Free Report) and Honeywell (HON - Free Report) . 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 >>>

Strong Buy-ranked Intel’s shares have underperformed the Zacks General Semiconductor industry over the past year, gaining +34.4% vs. +41.2%. Intel reported stellar second-quarter results. Both revenues and earnings increased year over year, on the back of impressive results from the Data Center Group, Internet-of-Things Group, Non-Volatile Memory Solutions and Programmable Solutions Group.

These segments along with MobilEye form the crux of Intel’s data-centric business model. The Zacks analyst likes the company’s strategy of expanding TAM beyond CPU to adjacent product lines like silicon photonics, fabric, network ASICs, and 3D XPoint memory. Its expanding customer base in the PSG segment drove top-line growth. A stable PC market is also positive for the company.

Additionally, lower spending helped in expanding operating margins. Intel raised 2018 guidance based on these solid growth trends. However, delay in transition to 10-nm process is a concern. Moreover, intensifying competition remains a headwind.

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

Shares of Verizon have gained +7.5% over the last year, outperforming the Zacks Wireless National industry’s loss of -10.1% during the same period. Verizon reported strong second-quarter 2018 results beating both top- & bottom-line estimates.

The company expects healthy improvement in margins on the back of the expected savings from tax reform as well as continued strong FiOS fiber-optic network and strategic services in the Wireline business. Verizon plans to launch next-generation 5G wireless residential broadband services in three to five U.S. markets in 2018.

However, the company continues to struggle in a highly competitive and saturated wireless market, where spectrum crunch has become a major issue. Losses in wireline access lines and competitive video market remain major impediments. Verizon’s wireline division is also struggling with persistent losses in access lines owing to competitive pressure from VoIP service providers and aggressive triple-play offerings by cable companies.

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

Honeywell’s shares have outperformed the Zacks Diversified Operations industry in the last year, increasing +17.1% vs. a -9.3% decline. The company reported better-than-expected second-quarter 2018 results. The company's top-line performance improved 6%, year over year, organically. Honeywell believes sturdier demand for its innovative technology solutions will continue to drive the company's segmental revenues in the quarters ahead.

Stronger sales volumes, increased productivity and ongoing commercial effectiveness actions will like drive near-term profitability. The company is currently facing inflationary headwinds across its entire supply-chain process. Inflation in logistics, transportation and in certain material prices might continue to weigh over Honeywell's profitability in the upcoming quarters.

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

Other noteworthy reports we are featuring today include Qualcomm (QCOM - Free Report) , Bristol-Myers (BMY - Free Report) and BlackRock (BLK - Free Report) .

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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>>>

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