Today's Must Read
T-Mobile (TMUS) Leapfrogs Competition on 5G Network Strength
ConocoPhillips (COP) Banks on Oil-Rich Permian Assets
Wednesday, October 13, 2021
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including The Home Depot, Inc. (HD), T-Mobile US, Inc. (TMUS), and ConocoPhillips (COP). 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 Home Depot have outperformed the Zacks Retail Building Products industry in the year to date period (+28% vs. +23.7%). The Zacks analyst believes that Home Depot has been witnessing significant benefits from the execution of its One Home Depot plan, which focuses on expanding supply chain, technology investments and digital enhancements.
The company has also been gaining from growth in Pro and DIY customer categories as well as the digital momentum. Increased penetration of lumber products and continued pressure from higher transportation costs weighed on its Q2 gross margin though. In the home improvement retailing business, Home Depot has been facing stiff competition from Lowe’s, Sherwin-Williams Company and other home supply retailers.
T-Mobile shares have gained +1% over the past year against the Zacks National Wireless industry’s loss of -1.5%. The Zacks analyst lauds the company’s efforts to expand its 5G network to bring fast and affordable wireless service across the country and believes that it will prove to be greatly beneficial for it in the long run.
T-Mobile’s Extended Range 5G covers 305 million people across 1.7 million square miles. The superfast Ultra Capacity 5G covers 165 million of those people and is expected to reach 200 million by the end of 2021. Fiercely competitive and an almost saturated U.S. telecom market, low-priced plans for consumers and small enterprises, and high costs related to promotional activities to lure customers from rivals have been denting its margins.
Shares of ConocoPhillips have gained +49.6% over the past six months against the Zacks U.S. Integrated Oil industry’s gain of +42.7%. The Zacks analyst believes that a huge inventory of drilling locations in the Eagle Ford Shale will likely contribute to ConocoPhillips’ production.
With an inventory of 4,700 undrilled Permian wells, the firm’s production outlook remains bright. The company recently announced an agreement to purchase all of Royal Dutch Shell’s assets in the prolific Permian. The company aims to broaden its presence in the Permian basin with this deal.
Other noteworthy reports we are featuring today include General Electric Company (GE), Illinois Tool Works Inc. (ITW) and Archer-Daniels-Midland Company (ADM).
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>>>