Today's Must Read
Intel (INTC) Rides on Portfolio Strength Amid 7 nm Delay
Verizon (VZ) Ramps Up Mid-Band Spectrum for 5G Impetus
Monday, March 1, 2021
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 Tesla (TSLA), Intel (INTC) and Verizon Communications (VZ). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Tesla shares have outperformed the Zacks Domestic Automotive industry over the past year (+354.2% vs. +211.4%). The Zacks analyst believes that Tesla has a first-mover advantage in the e-mobility space with high range vehicles, superior technology and a software edge.
Robust Model 3/Y demand, Shanghai Gigafactory prospects, amazing line-up of upcoming products and aggressive expansion efforts bode well for the firm. Importantly, Tesla posted its sixth consecutive quarterly profit in Q4. However, an unclear 2021 vehicle delivery target raises concerns.
As it is, the firm’s high operating costs, as well as massive capex owing to heavy investments related to the construction of gigafactories, along with development of battery tech, might strain near-term financials. Waning margins for Model S/X and lofty valuation of the firm are other concerns.
Shares of Intel have gained +16.3% in the last six months against the Zacks General Semiconductor industry’s gain of +8.4%. The Zacks analyst believes that Intel is well-poised to benefit from increasing demand for its 10 nanometer (nm) SuperFin process-based 11th Gen core processors.
Further, Mobileye growth is projected to be driven by design-win momentum and stabilizing the automotive industry through 2021. Nevertheless, sluggish data center demand across cloud service providers, enterprise and government end-markets is likely to weigh on the top-line performance, at least in the near term.
Declining average selling price (ASPs) and weakness in Internet of Things (IoT) end-markets remain headwinds. Also, production delays pertaining to 7 nm ramp-up remain concerns.
Verizon’s shares have lost 9.9% over the past three months against the Zacks Wireless National industry’s loss of 7.8%. 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.
The company is aiming to augment its mid-band spectrum capacity and has emerged as the largest bidder, with $45.5 billion worth of bids in the recently-concluded C-Band spectrum auction. The acquisition of incubed IT will enable it to develop new business opportunities for enterprises and scale up robotic automation.
However, Verizon operates in an intensely competitive U.S. wireless market that strains margins. Adoption of unlimited data plans has resulted in reduction of wireless service revenues. Hefty expenses on promotion and lucrative discounts to attract customers further hampers its profitability.
Other noteworthy reports we are featuring today include Novartis (NVS), Costco Wholesale (COST) and Intuit (INTU).
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
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>>>