Today's Must Read
5G Portfolio, Partnerships Aid Verizon (VZ) Amid Competition
COVID-19 Test Sales, End Market Growth Aid Thermo Fisher (TMO)
Monday, September 28, 2020
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 Procter & Gamble (PG), Verizon Communications (VZ) and Thermo Fisher Scientific (TMO). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Procter & Gamble shares have outperformed the Zacks Soap and Cleaning Materials industry in the year to date period (+11.8% vs. +10.3%). The Zacks analyst believes that the company’s efforts to make its cleaning and personal care products available during the current pandemic have helped bolster sales.
Further, rise in shipment volume and better pricing aided sales in the fourth quarter. Top line gained from organic sales growth, driven by rise in organic shipment volume and better pricing. Encouragingly, it issued an upbeat fiscal 2021 view. Further, cost savings aided core currency-neutral gross and operating margin by 250 bps and 190 bps, respectively.
Also, it delivered adjusted free cash flow productivity of 114% in the fiscal fourth quarter. However, currency fluctuations have weighed on the margins and will likely impact fiscal 2021 results. Additionally, stiff competition remains a woe.
Shares of Verizon have lost -1.4% over the past year against the Zacks Wireless National industry’s fall of -2%. The Zacks analyst believes that Verizon is likely to benefit from a disciplined network strategy, including accelerated 5G deployment despite economic uncertainties stemming from the COVID-19 crisis.
Verizon, in association with Amazon Web Services, has added three more 5G mobile edge computing cities — Atlanta, New York City and Washington, DC — bringing the total to five. The company has been building its 5G Ultra Wideband network to enable innovations that will support the changing behavior of customers. Verizon completed the world’s first end-to-end fully virtualized 5G data session in a live network.
It has inked a deal to acquire TracFone — a subsidiary of Mexico’s largest telecommunications company, America Movil. However, Verizon is facing challenges within the media business due to sluggish advertising trends. It operates in a fiercely competitive U.S. wireless market that strains margins. The company is spending heavily on promotion and lucrative discounts to attract customers, which erodes profitability.
Thermo Fisher shares have gained 50.1% over the past six months against the Zacks Medical Instruments industry’s rise of 31%. The Zacks analyst is encouraged by the exceptionally strong year-over-year revenue growth at Life Sciences Solutions segment. Furthermore, pharma and biotech registered growth on the back of robust performances in bioproduction and pharma services businesses.
The COVID-19 sales also boosted the company’s quarterly results. A strong capital structure looks encouraging. Its second quarter results were better-than-expected. Thermo Fisher has outperformed its industry in the past six months.
However, the coronavirus outbreak has massively disrupted the global supply chain. Two of the end markets registered loss in the first quarter, largely due to customer shutdowns in China.
Other noteworthy reports we are featuring today include NVIDIA (NVDA), NIKE (NKE) and Accenture (ACN).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Director of Research
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>>>