Monday, November 25, 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 Costco Wholesale Corp. (COST), T-Mobile US, Inc. (TMUS) and Uber Technologies, Inc. (UBER), as well as two micro-cap stocks, SandRidge Energy, Inc. (SD) and Elite Pharmaceuticals, Inc. (ELTP). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Costco’s shares have outperformed the Zacks Retail – Discount Stores industry over the last six months (+19.0% vs. +9.5%). The Zacks analyst believes that strategic investments, a customer-centric approach, merchandise initiatives and an emphasis on membership growth have been helping the company.

However, Costco faces stiff competition from BJ’s Wholesale Club and Sam’s Club, a division of Walmart Stores. These two rivals follow similar business models. Also, Costco's global presence exposes an inherent vulnerability to foreign currency fluctuations.

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

T-Mobile US’s shares have outperformed the Zacks Wireless National industry over the past year (+60.1% vs. +39.1%). The Zacks analyst believes that solid demand for postpaid services, solid growth in free cash flow and efficient capital management have aided the company.

Yet, the highly competitive and saturated nature of the U.S. wireless market could adversely affect its financial results. Declining prepaid ARPU remains a concern.

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

Shares of Uber have outperformed the Zacks Internet - Services industry over the past two years (+157.6% vs. +73.5%). Per the Zacks analyst, the company’s efforts to expand its delivery operations through successive acquisitions are encouraging. Continued recovery in Mobility operations is also aiding the company.

However, Uber continues to witness high costs and expenses owing to a rise in sales and marketing expenses and cost of revenues. Increased spending on driver incentives is also pushing up costs. High debt levels are bothersome as well.

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

Shares of SandRidge Energy have underperformed the Zacks Oil and Gas – Integrated – United States industry over the past year (-14.4% vs. -2.0%). Per the Zacks analyst, the company faces significant challenges due to declining natural gas prices and production volumes, which are pressuring revenues, cash flow and profitability. Its heavy reliance on the Mid-Continent region increases its exposure to regional risks.

Yet, recent strategic acquisitions targeted at enhancing the company’s stature are a part of SandRidge's ongoing efforts to optimize its asset base.

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

Shares of Elite Pharma have outperformed the Zacks Medical – Drugs industry over the past year (+300.5% vs. +5.5%). Per the Zacks analyst, success of the Elite label products and expanding portfolio like high-value Abbreviated New Drug Applications for medications like Methotrexate and controlled substances have benefited. Its recent facility expansion enhances manufacturing capacity, supporting future product launches.

Yet, risks include customer concentration, pricing pressure from large buyers, intense competition, and regulatory challenges related to controlled substances. Supply chain vulnerabilities and potential overextension in product launches are other concerns.

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

Other noteworthy reports we are featuring today include NVIDIA Corp. (NVDA), Chubb Ltd. (CB) 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>>>