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Research Daily

Wednesday, March 1, 2023

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), T-Mobile US, Inc. (TMUS) and Stryker Corp. (SYK). 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 Systems were in line with the Zacks Computer - Networking industry over the past six months (+8.6% vs. +8.5%). The company has benefited from easing supply chain conditions, greater availability of components and redesigning of some products. Cisco witnessed strong demand for its products, including the Catalyst 9000 family, Cisco 8000, Wireless, Meraki, ThousandEyes and Duo.

Nevertheless, it believes this situation provides growth opportunities for low-power-consuming technologies, including IoT, Silicon One and Power over Ethernet. Cisco’s investments across its security business, focusing on cloud-based offerings, is expected to drive growth in the long haul. Cisco provided strong outlook for second-quarter fiscal 2023.    

However, Cisco witnessed cautious spending in European markets due to a dramatic increase in energy costs and market volatility.

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

Shares of T-Mobile US have outperformed the Zacks Wireless National industry over the past year (+13.2% vs. -14.3%). With industry-leading growth in postpaid and broadband customers driven by superior 5G network and focus on customers, T-Mobile is on track to complete the Sprint customer network decommissioning.

T-Mobile US has augmented its 5G footprint by introducing 5G Home Internet services in several states. T-Mobile plans to reach 300 million people within the current year. It intends to bring more competition to home broadband, especially in underserved rural markets.

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. Importantly, the costs incurred to gain customers and enhance revenues have not rewarded its shareholders yet. Debt obligation woes also persist.

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

Stryker’s shares have outperformed the Zacks Medical - Products industry over the past six months (+29.0% vs. +3.0%). The company saw strong performance across both its segments in fourth-quarter 2022. Internationally, it reported mid-single-digit organic growth, highlighted by double-digit organic growth in Europe and emerging markets. A solid solvency position is a plus.

Per management, the company managed to deliver robust growth in both of its businesses and demonstrated promising integration of Wright Medical despite the COVID-19 led disruptions. Strength in its flagship Mako platform continues to favor the company.

However, inflationary pressure and supply-chain challenges continue to plague Stryker. Stiff competition in the MedTech space remains a headwind. Contraction in both gross and operating margin is another challenge.

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

Other noteworthy reports we are featuring today Sanofi (SNY), The Progressive Corp. (PGR) and PayPal Holdings, Inc. (PYPL).

Mark Vickery
Senior Editor

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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