Wednesday, August 2, 2023

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 Exxon Mobil Corp. (XOM), Adobe Inc. (ADBE) and T-Mobile US, Inc. (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 >>>

Shares of Exxon Mobil have outperformed the Oil and Gas - Integrated - International industry over the past year (+21.1% vs. +18.3%). The company’s bellwether status and an optimal integrated capital structure has historically produced industry-leading returns make it a relatively lower-risk energy sector play.

In Stabroek Block, located off the coast of Guyana, Exxon Mobil has made many major discoveries that significantly improve its production outlook. The advantaged growth projects of Guyana have lower greenhouse gas intensity than most of the oil and gas-producing resources across the globe. Exxon Mobil also has a strong presence in the Permian Basin, the most prolific resource in the United States.

However, the firm reported weak second-quarter earnings owing to lower crude price realizations. The firm’s dividend yield is lower than the composite stocks belonging to the industry. Thus, Exxon Mobil is lagging its peers when it comes to shareholders’ returns.

(You can read the full research report on Exxon Mobil here >>>)

Adobe’s shares have outperformed the Zacks Computer - Software industry over the past year (+29.3% vs. +22.6%). The company is benefiting from strong demand for its creative products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Rising subscription revenues and solid momentum across the mobile apps are major positives.

Additionally, growth in emerging markets and robust online video creation demand remain tailwinds. Additionally, solid demand for Adobe’s commerce offerings and growing adoption of Acrobat. The Zacks analyst remain optimistic about Adobe’s market position, compelling product lines and continued innovation.

However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion.

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

Shares of T-Mobile US have declined -2.0% over the year-to-date period against the Zacks Wireless National industry’s decline of -11.3%. The company’s declining prepaid customer addition due to moderation of industry growth and low equipment revenues are major concerns. Stiff competition and saturation in the wireless market are straining margins.

Promotional offers and low-priced service plans to expand the customer base are putting pressure on profitability. High debt burden remains additional headwind. Nevertheless, its 5G network covers 98% of Americans and Ultra Capacity 5G covers 285 million people.

The company is gaining from its dedicated 5G spectrum asset with superior propagation, network leadership and industry-leading postpaid net customer addition. Low postpaid phone churn rate and strong growth in high-speed Internet customers are tailwinds.

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

Other noteworthy reports we are featuring today include Mondelez International, Inc. (MDLZ), Marsh & McLennan Companies, Inc. (MMC) and Schlumberger Ltd. (SLB).

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>>>