Today's Must Read
AT&T (T) Rides on Solid Wireless Traction, Subscriber Growth
Military Business Aids Boeing (BA), Supply Chain Issue Woes
Monday, October 25, 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 salesforce.com, inc. (CRM), AT&T Inc. (T), and The Boeing Company (BA). 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 salesforce have modestly underperformed the Zacks Computer Software industry in the year to date period (+31.5% vs. +35.6%), however, the company continues to benefit from a robust demand environment as customers are undergoing a major digital transformation. The Zacks analyst believes that diverse cloud offerings, clientele strength, strategic acquisitions and partnerships are key drivers of the company’s growth.
The recent acquisition of Slack is likely to position the company as a leader in enterprise team collaboration solutions space. It, however, faces stiff competition from Microsoft Corp. and Oracle in the cloud-based CRM market. Unfavorable currency fluctuations along with increasing investments in international expansions and data continue to weigh on near-term profitability.
AT&T shares have gained +0.1% over the past year against the Zacks Wireless National industry’s loss of -0.3%. The Zacks analyst believes that the company has been witnessing early momentum in its core market areas, driven by strength in 5G, fiber, and HBO Max subscribers.
With a customer-centric business model, AT&T is witnessing healthy momentum in its postpaid wireless business with a lower churn rate and increased adoption of higher-tier unlimited plans. It, however, reported mixed third-quarter 2021 results as healthy wireless traction was partially offset by lower contribution from divested businesses. The company is also struggling with a decline in its legacy telephony Internet and wireline services.
Shares of Boeing have gained +19.2% over the past six month against the Zacks Aerospace & Defense industry’s gain of +11.3%. Risks related to supply chain shortages due to the ongoing pandemic as well as lower deliveries compared to Airbus have been weighing on its margins.
The Zacks analyst, however, believes that long-term prospects of global services unit and increasing fiscal defense budget are expected to boost Boeing's growth. The company’s commercial business made a notable rebound in the second quarter. The outlook for the aerospace giant’s defense business remains optimistic.
Other noteworthy reports we are featuring today include The Charles Schwab Corporation (SCHW), Biogen Inc. (BIIB) and Arthur J. Gallagher & Co. (AJG).
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>>>