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Research Daily

Sheraz Mian

Top Research Reports for Bank of America, T-Mobile & ConocoPhillips


Trades from $3

Tuesday, December 6, 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 Bank of America Corporation (BAC), T-Mobile US, Inc. (TMUS) and ConocoPhillips (COP). 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 Bank of America have modestly underperformed the Zacks Banks - Major Regional industry over the past year (-22.9% vs. -20.4%). The company’s over-dependence on trading revenues for fee income is a key concern. The volatile nature of the capital markets might adversely impact fee income growth.

However, Bank of America’s earnings outpaced the Zacks Consensus Estimate in three and lagged in one of the trailing four quarters. Its third-quarter 2022 results were primarily aided by higher rates and loan growth. The opening of new financial centers, enhancement in digital capabilities and cost-saving efforts are expected to keep aiding the company’s financials.

Moreover, supported by continued loan growth, Bank of America's top line is expected to improve further. Given the rise in interest rates, the company is expected to keep witnessing growth in margins in the near term.

(You can read the full research report on Bank of America here >>>)

T-Mobile's shares have outperformed the Zacks Wireless National industry over the past year (+28.5% vs. -10.4%). The company’s industry-leading growth in postpaid and broadband customers is driven by superior 5G network. It is on track to complete the Sprint customer network decommissioning by the year-end.

The company 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-Mobile here >>>)

ConocoPhillips’s shares have gained +60.1% over the past year against the Zacks Oil and Gas - Integrated - United States industry’s gain of +65.2%. The company holds a bulk of acres in the unconventional plays of Eagle Ford shale, Permian Basin and Bakken shale. Significant opportunities are there for the firm in the Bakken Shale, where it owns about 750 undrilled locations that could provide access to huge reserves.

COP projects its 2022 production at 1.74 million barrels of oil equivalent per day (MMBoe/d), suggesting an increase from 1.6 MMBoe/d last year. COP’s balance sheet is significantly less leveraged than the industry it belongs to. Also, it approved a $20-billion increase in the existing share repurchase program to $45 billion.

However, COP is highly exposed to oil price fluctuations, which makes things challenging for the company. Also, it been generating lower dividend yield than the industry over the past few years. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include Starbucks Corporation (SBUX), Prologis, Inc. (PLD), and Sysco Corporation (SYY).

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>>>

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