Today's Must Read
Verizon (VZ) Rides on 5G Network, Healthy Customer Additions
Cost Control Aids Wells Fargo (WFC) Amid Declining Revenues
Tuesday, September 27, 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 The Procter & Gamble Company (PG), Verizon Communications Inc. (VZ) and Wells Fargo & Company (WFC). 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 >>>
Procter & Gamble shares have declined -3.5% over the past year against the Zacks Soap and Cleaning Materials industry’s decline of -7.6%. The unfavorable mix of commodity cost inflation, increase in freight costs, product and packaging investments and other impacts hurt margins. It expects higher commodity and freight costs to persist in fiscal 2023.
However, earnings and sales improved year over year. Results have been driven by higher sales, robust pricing and a favorable mix. Improved productivity amid cost headwinds also aided the results.
Management issued a favorable view for fiscal 2023. It witnessed SG&A expense leverage, owing to savings from overhead and marketing expenses, and cost leverage gains due to higher sales and real estate.
(You can read the full research report on Procter & Gamble here >>>)
Verizon’s shares have declined -28.1% over the past year against the Zacks Wireless National industry’s decline of -24.7%. The company have lowered its guidance for 2022 due a to challenging macroeconomic environment. An intensely competitive market and hefty expenses on promotions and lucrative discounts to attract customers are likely to hurt its profitability. High auctioning expenses for the mid-band spectrum are expected to further compromise margins.
However, Verizon plans to accelerate the availability of the 5G Ultra Wideband network with C-Band deployment, focusing on 5G mobility, nationwide broadband, mobile edge compute and business solutions. It is offering various mix-and-match pricing in both wireless and home broadband plans which led to solid customer additions.
It continues to deploy the latest 4G LTE Advanced technologies to deliver faster peak data speeds and capacity for customers driven by customer-focused planning, disciplined engineering and investments.
(You can read the full research report on Verizon here >>>)
Wells Fargo shares have declined -12.9% over the past year against the Zacks Banks - Major Regional industry’s decline of -27.9%. Due to legal hassles, Wells Fargo has been penalized with business restrictions and a monetary fine. Restrictions on asset growth will continue to limit loan expansion ability. A decline in originations might limit mortgage banking income.
However, the company’s progress on efficiency initiatives propelled expense control and savings, which are likely to support its bottom line in upcoming period. Strength in the deposit balance will aid the bank’s liquidity position.
The company’s solid liquidity position will help to meet its debt obligations if the economic situation worsens. Also, capital deployment activities seem sustainable.
(You can read the full research report on Wells Fargo here >>>)
Other noteworthy reports we are featuring today include Advanced Micro Devices, Inc. (AMD), Infosys Limited (INFY), and Uber Technologies, Inc. (UBER).
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>>>