Today's Must Read
Robust Revenues & Cash Flows Aid American Express (AXP)
Mobile & Internet Subscriber Gain Benefits Charter (CHTR)
Tuesday, December 7, 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 SAP SE (SAP), American Express Co. (AXP), and Charter Communications, Inc. (CHTR). 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 SAP have underperformed the Zacks Computer Software industry over the past year (+8.3% vs. +41.4%), however, things seem to be improving for it. The Zacks analyst believes that SAP has been benefiting from strength in its cloud business, especially in the "Rise with SAP" solution.
Momentum in SAP’s Business Process Intelligence platform, S/4HANA solutions, as well as SuccessFactors Employee Central, Ariba and Fieldglass offerings is noteworthy. SAP's alliances with IBM, Microsoft and Verizon are a major positive. Solid demand for Qualtrics, e-commerce, digital supply chain and other cloud platform solutions, also bodes well. Soft uptake of software licenses and support offerings and higher investments to enhance cloud-based offerings are major concerns, however.
American Express shares have gained +34.4% in the year to date period against the Zacks Financial Miscellaneous Services industry’s gain of +17.4%. The Zacks analyst believes that American Express is poised to benefit from improving revenues, a strong balance sheet and a solid capital position.
Consumer spending on travel and entertainment remains strong and this bodes well for AXP. Solid cash generation abilities and a strong balance sheet enables business investments and prudent capital deployment activities. An increase in the utilization of AXP’s cards, however, is likely to increase expenses in the form of card member services and card member rewards. Marketing and business development expenses are expected to rise as well.
Shares of Charter Communications have lost -0.8% in the last six months against the Zacks Cable TV industry’s loss of -5.7%. Charter operates in a saturated & competitive multi-channel U.S. video market. Intense competition, eroding video subscriber base and leveraged balance sheet are key concerns.
The Zacks analyst, however, believes that the expanding customer base of residential and commercial Internet plus small & medium business (SMB) as well as the new 5G service offerings bode well for Charter. CHTR continues to witness strong spike in Internet usage due to the coronavirus-induced work-from-home and online-learning wave.
Other noteworthy reports we are featuring today include Blackstone Inc. (BX), Fidelity National Information Services, Inc. (FIS) and Northrop Grumman Corp. (NOC).
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>>>