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Research Daily

Wednesday, July 28, 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, Inc. (TSLA), The Walt Disney Company (DIS), and Wells Fargo & Company (WFC). 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 Tesla shares have responded favorably to the better-than-expected Q2 earnings report, buthe stock has otherwise struggled this year, down -8.6% this year vs. -4.1% decline for the Zacks Auto sector and +18.4% gain for the S&P 500 index. Tesla bulls consider the stock's recent struggle as nothing more than a temporary breather after last year's phenomenal run and expect the uptrend to eventually return. 

The Zacks analyst believes that rising Model 3/Y delivery has been aiding the company’s prospects. Construction of gigafactories in Berlin and Texas are well on track, and production is expected to commence this year.

While Tesla’s high range vehicles and superior technology bode well, it is not immune to the global microchip deficit, which is likely to weigh on the firm’s near-term prospects. Massive capex due to capacity investments in gigafactories and the development of battery tech might strain near-term financials.

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

Disney shares have gained +6.8% over the last six months against the Zacks Media Conglomerates industry’s loss of -29.4%. The Zacks analyst believes that Disney has been benefiting from the growing popularity of Disney+, on the back of strong content portfolio and a cheaper bundle offering. Reopening of California theme parks is likely to boost its top-line growth.

Disney’s studio business is expected to gain from the reopening of theaters as COVID-19 restrictions are eased. The company will, however, take time to recover from the pandemic-led disruptions as its cruise line business remains closed and the re-opened resorts are operating at a lower capacity. A leveraged balance sheet is another headwind.

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

Shares of Wells Fargo have gained +50.5% in the year to date period against the Zacks Major Regional Banks industry’s gain of +24.4%. The Zacks analyst believes that its second-quarter results were supported by continued economic recovery, efficiency initiatives and lower allowance for credit losses.

Wells Fargo’s efforts to enhance compliance and risk-management capability along with streamlining initiatives is encouraging. The company’s robust liquidity position is evident from its strong deposit balance. Revenues, however, are affected by low interest rates. Federal Reserve’s asset growth restrictions have been weighing on the company's loan growth capacity.

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

Other noteworthy reports we are featuring today include Intel Corporation (INTC), Lockheed Martin Corporation (LMT) and FedEx Corporation (FDX).

Sheraz Mian

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>>>

Featured Reports

FedEx (FDX) Benefits from Higher Package Volumes

Per the Zacks analyst, higher package volumes, mainly due to e-commerce demand, are aiding FedEx. Additionally, the company's efforts to reward shareholders through dividends are impressive.

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