Today's Must Read
5G Leadership & Customer Growth to Drive T-Mobile (TMUS)
Buyouts, AUM Balance Aid BlackRock (BLK), High Costs Ails
Monday, April 4, 2022
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 PepsiCo, Inc. (PEP), T-Mobile US, Inc. (TMUS), 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 PepsiCo have outperformed the Zacks Beverages - Soft drinks industry over the past one year period (+21.9% vs. +16.7%) on the back of strong operating performance, as reflected in the recent quarterly report when volume growth and robust price/mix drove outperformance. Earnings were in line with estimates and improved year over year. The company also benefits from investments in brands, go-to-market systems, supply chains, manufacturing capacity, and digital capabilities to build competitive advantages. It also gains from the resilience and strength of global beverage and convenient food businesses.
In 2022, it expects to retain the strength and momentum witnessed in 2021. However, PepsiCo witnessed margin pressures in fourth quarter 2021 driven by impacts of supply-chain disruptions and the negative effects of the inflationary labor, transportation and commodity costs.
(You can read the full research report on PepsiCo here >>>)
Shares of T-Mobile have outperformed the Zacks Wireless National industry over the year to date basis (+12.7% vs. +3.7%). The company continues to expand its 5G network to bring fast and affordable service across the country. It announced a series of steps to accelerate 5G developer innovation. Initiatives include a new developer platform, innovation center, venture investments, T-Mobile Accelerator participants and 5G partnerships with Disney and Red Bull. The Zacks analyst believes that dubbed 5G Forward, these moves will strengthen the 5G innovation ecosystem and help creators build the 5G future. T-Mobile’s commitment to building the world’s best nationwide 5G network is likely to bring superfast speeds to urban and rural locations.
However, it operates in a fiercely competitive and almost saturated U.S. telecom market. Low-priced plans for consumers and small enterprises have not improved the bottom line. Promotional activities to lure customers from rivals hurt its profitability.
Shares of BlackRock have outperformed the Zacks Financial - Investment Management industry over the past one year period (+0.2% vs. -9.7%). The Zacks analyst believes that the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Supported by a strong liquidity position, BlackRock continues with efforts to restructure the equity business. This, along with strategic acquisitions, will likely keep aiding revenue growth and help in expanding its market share and footprints globally. Steadily improving assets under management (AUM) balance will likely further support the top line.
Its capital deployment activities look sustainable, through which it will keep enhancing shareholder value. However, elevated expenses (owing to higher administration costs) might hurt profits to some extent. The company’s high dependence on overseas revenues is another concern.
Other noteworthy reports we are featuring today include Automatic Data Processing, Inc. (ADP), Charter Communications, Inc. (CHTR) and Block, Inc. (SQ).
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>>>