Monday, October 31, 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 Exxon Mobil Corporation (XOM), T-Mobile US, Inc. (TMUS) and Intuitive Surgical, Inc. (ISRG). 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 Exxon Mobil have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+69.3% vs. +41.6%). The company’s bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play.

Exxon Mobil has made more than 30 discoveries in offshore Guyana since 2015. ExxonMobil also has a strong presence in the prolific Permian Basin, where it expects to boost production volumes by 25% in 2022. The energy major has significantly lower debt exposure than composite players belonging to the industry. XOM recently reported strong third-quarter earnings owing to higher prices and production, and strong refining margins.

However, the company has been constantly bearing the brunt of increasing expenses, adversely affecting the income. Also, the aggressive capital budget remains a headwind for the company. As such, the stock warrants a cautious stance.

(You can read the full research report on Exxom Mobil here >>>)

Shares of T-Mobile have outperformed the Zacks Wireless National industry over the past year (+28.2% vs. -13.8%). The company reported relatively modest third-quarter 2022 results with industry-leading growth in postpaid and broadband customers driven by superior 5G network and focus on customers. It is on track to complete the Sprint customer network decommissioning by the year-end.

T-Mobile has augmented its 5G footprint by introducing 5G Home Internet services in several states. With healthy demand trends, T-Mobile has raised the guidance for 2022 across the board.

However, it operates in a fiercely competitive and almost saturated U.S. telecom market, which lowers its growth potential to some extent. Several promotional activities to lure additional customers are further eroding its profitability. Furthermore, it is engaging in leasing strategy to gain customers, thereby exposing it to credit risk. Debt obligation woes also persist.

(You can read the full research report on T-Mobil here >>>)

Intuitive Surgical’s shares have declined -30.7% over the past year against the Zacks Medical - Instruments industry’s decline of -33.5%. The company is facing stiff competition in the global MedTech space and rising costs remain a concern. Nevertheless, its da Vinci procedure volume demonstrated strong recovery in the first nine months of 2022, a trend likely to continue in upcoming quarter.

Intuitive Surgical’s revenue growth in the quarter under review reflected rise in revenues from procedures, system placements and services across all markets. Per management, strong U.S. dollar, lingering supply chain issues and inflation hurt operating margin.

Despite this challenging environment, Intuitive Surgical witnessed healthy customer demand for its products in the quarter under review. A stable liquidity position is an added plus.

(You can read the full research report on Intuitive Surgical here >>>)

Other noteworthy reports we are featuring today include Texas Instruments Incorporated (TXN), Regeneron Pharmaceuticals, Inc. (REGN), and Infosys Limited (INFY).

Sheraz Mian
 
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>>>