Tuesday, March 5, 2024

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 Home Depot, Inc. (HD), T-Mobile US, Inc. (TMUS) and General Electric Co. (GE). 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 >>>

Home Depot’s shares have outperformed the Zacks Building Products - Retail industry over the past year (+31.1% vs. +30.0%). The company has been witnessing benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.

The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. It is on track with its strategic investments to build a Pro ecosystem.

However, Home Depot's top and bottom-lines declined year over year in third-quarter fiscal 2023. Results were impacted by deflation in lumber and copper prices and pressures from softness in big-ticket discretionary categories, which weighed on comps.

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

Shares of T-Mobile have outperformed the Zacks Wireless National industry over the past year (+14.6% vs. +6.6%). The company recorded 5.7 million postpaid net customer additions and 2.1 million high-speed Internet net customer additions in fiscal 2023. Both metrics are the best in the industry.

T-Mobile’s 5G coverage exceeds 330 million people, a greater footprint than AT&T and Verizon combined. A higher adjusted free cash flow highlights efficiency in operations and implies that the company is well-positioned to invest in growth initiatives, pay debts and dividends.

However, lower sales of prepaid and Assurance Wireless devices affected revenue from Equipment sales. Weak demand for prepaid services and declining prepaid ARPU is a headwind. A high debt burden and macroeconomic challenges remain concerns.

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

General Electric’s shares have outperformed the Zacks Diversified Operations industry over the past year (+85.3% vs. +13.2%). The company has been witnessing strength in its Aerospace segment, driven by robust demand for commercial engines and services. With strength in GE Gas Power services and growth in Grid and Onshore Wind businesses in North America, signs of improvement in GE Vernova (the combined operations of GE Power and Renewable) hold promise.

Acquisitions made over time are also likely to be beneficial. Shares of the company have outperformed the industry in the past six months. However, it has been dealing with high costs and operating expenses, which might affect its margins and profitability.

Softness in the company’s Offshore wind business acts as a hindrance to the Renewable Energy segment. Supply chain disruptions in the defense market continue to take a toll on its operations. Also, foreign exchange headwinds might be worrying.

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

Other noteworthy reports we are featuring today include Qualcomm Inc. (QCOM), Lockheed Martin Corp. (LMT) and ICICI Bank Ltd. (IBN).

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>>>