Today's Must Read
Verizon (VZ) Rides on 5G, Customer-Centric Business Focus
Buyouts, Active Equity Focus Aid BlackRock (BLK), Costs Ail
Monday, December 27, 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 Cisco Systems, Inc. (CSCO), Verizon Communications Inc. (VZ), and BlackRock, Inc. (BLK). 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 Cisco have outperformed the Zacks Computer Networking industry over the past year (+42.7% vs. +40.4%), with this legacy Tech leader benefiting from strength in its product portfolio, customer segments and momentum in product order growth.
Strength in Webscale business and solid uptake of switching solutions, especially Catalyst 9000 and Meraki offerings, are other key catalysts for growth. The buyout of Acacia Communications also bodes well for the long haul. Component shortages and ongoing supply chain issues, however, are likely to persist through the second half of fiscal 2022. This might dent revenues as well as margin expansion.
Verizon shares have lost -6.2% in the year-to-date period against the Zacks Wireless National industry’s loss of -7.4%, however, things seem to be improving for the company. The Zacks analyst believes that Verizon remains well-poised to benefit from a disciplined network strategy and a customer-centric business model.
Verizon expects this momentum to continue on the back of diligent execution of operational plans along with dedicated 5G endeavors. The proposed sale of Verizon Media reaffirms its focus on its core wireless business. Hefty expenses on promotions, lucrative discounts to attract customers, and an intensely competitive U.S. wireless market are some of the major headwinds though.
Shares of BlackRock have gained +5% in the last six months against the Zacks Investment Management industry’s loss of -5%. The Zacks analyst believes that BlackRock is well-poised to capitalize on opportunistic acquisitions and steadily improving AUM balance.
BLK’s initiatives to restructure the equity business along with strategic acquisitions are expected to keep aiding revenue growth, and, hence, expand its global reach and market share. High administration costs as well as heavy dependence on overseas revenues, however, remain concerning for BlackRock.
Other noteworthy reports we are featuring today include HSBC Holdings plc (HSBC), General Electric Company (GE) and Carvana Co. (CVNA).
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>>>