Friday, August 4, 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 Verizon Communications Inc. (VZ), ICICI Bank Limited (IBN) and MercadoLibre, Inc. (MELI). 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 declined -11.8% over the year-to-date period against the Zacks Wireless National industry’s decline of -13.0%. The company’s continued retail prepaid and postpaid net losses are hindering its top-line growth. Stiff competition from other major players and saturation in the U.S. wireless market is hurting profits.

Heavy spending on promotional activities to attract customers is also weighing on margins. It has reiterated its soft guidance for 2023 due to a challenging macroeconomic environment. Nevertheless, Verizon is witnessing significant 5G adoption and fixed wireless broadband momentum.

It is offering various mix and match pricing in both wireless and home broadband plans that has led to solid customer additions. Strong demand for Fios and fixed wireless products are tailwinds. Healthy traction in wireless business augurs well.

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

ADRs of India's ICICI Bank have outperformed the Zacks Banks - Foreign industry over the past six months (+14.1% vs. +5.4%) reflecting the favorable growth outlook for the country. The company's first-quarter fiscal 2024 (ended Jun 30) results show higher revenues, robust loans and deposit balance and a rise in provisions. Increased dependence on domestic loans, a rise in retail loan demand, higher interest rates and a stable funding base are expected to support the company's financials.

Furthermore, efforts of digitizing banking operations will help generate non-interest income, thereby supporting revenue growth. However, weak asset quality remains a major near-term headwind. Macroeconomic concerns, including high inflation across the globe, make us apprehensive.

Moreover, elevated operating expenses, mainly on the back of technology investments and ongoing branch expansion initiatives, will likely impede the bottom-line growth.

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

Shares of Argentina-based MercadoLibre have outperformed the Zacks Internet - Commerce industry over the past year (+29.1% vs. -3.5%). The company’s revenues were driven by accelerating commerce and fintech revenues. Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company.

MercadoLibre’s rising gross merchandise volume (GMV) remained another positive. Strong shipment growth also contributed well to the reported results. MercadoLibre is benefiting from strength in its commerce and fintech businesses. Further, robust mobile-point-of-sale business and growing adoption of MercadoPago are driving the TPV.

Also, rapid adoption of Mobile Wallet remains a positive. Shares have outperformed the industry year to date. However, mounting expenses related to warehousing, free shipping subsidies and mPOS discounts are major concerns.

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

Other noteworthy reports we are featuring today include O'Reilly Automotive, Inc. (ORLY), Chipotle Mexican Grill, Inc. (CMG) and MetLife, Inc. (MET).

Director of Research

Sheraz Mian

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>>>