Today's Must Read
Solid 5G & Fiber Momentum Aids AT&T (T) Amid High Debts
Acquisitions, Focus on Trading Revenues Aid Schwab (SCHW)
Wednesday, November 24, 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 Alphabet Inc. (GOOGL), AT&T Inc. (T) and The Charles Schwab Corp. (SCHW). 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 Alphabet have outperformed the S&P 500 over the past year (+65.3% vs. +31.9%). The Zacks analyst believes that Alphabet’s focus on innovation, strategic acquisitions and Android OS should continue to generate strong cash flow.
Alphabet's strong cloud division has also been aiding substantial revenue growth. Expanding data centers are likely to continue boosting its presence in the cloud space. Google’s mobile search is gaining solid momentum. Strong focus on innovation of AI techniques and the home automation space should also aid business growth in the long term.
AT&T shares have lost -7.4% in the year to date period against the Zacks Wireless National industry’s loss of -9.1%, but things seem to be improving for the company. The Zacks analyst believes that AT&T is well poised to benefit from a solid subscriber growth on the back of a robust cash flow position and a strong business model.
AT&T aims to spin off its media assets and merge them with the complementary assets of Discovery to focus more on core operations and unlock value by monetizing assets. AT&T is, however, witnessing a steady decline in linear TV subscribers, legacy services and wireline division, with its margins falling as it tries to entice customers with discounts and freebies.
Shares of Schwab have gained +16.1% in the past six months against the Zacks Financial - Investment Bank industry’s gain of +6.9%. The Zacks analyst expects Schwab’s inorganic growth efforts and initiatives to augment trading revenues to boost profitability.
Strategic acquisitions have helped Schwab reinforce its position as a leading brokerage firm. This is likely to boost its margins in the quarters ahead. Near-zero interest rates with no chance of a hike in the same in the near term pose a major concern though. Steadily increasing operating expenses are also expected to stress margins in the near term.
Other noteworthy reports we are featuring today include American Tower Corp. (AMT), General Electric Co. (GE) and American International Group, Inc. (AIG).
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>>>