Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Microsoft, Tesla, AT&T, Apple and Oracle

Read MoreHide Full Article

For Immediate Release

Chicago, IL – October 28, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft Corporation (MSFT - Free Report) , Tesla, Inc. (TSLA - Free Report) , AT&T Inc. (T - Free Report) , Apple Inc. (AAPL - Free Report) and Oracle Corporation (ORCL - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Top Stock Reports to Microsoft, Tesla and AT&T

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 Microsoft, Tesla and AT&T. 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 >>>

Microsoft shares have outperformed the S&P 500 in the year-to-date period (+33.7% vs. +5.8%) on the back of continued momentum in Azure, impressive Teams user growth triggered by coronavirus crisis led work-from-home, the online learning wave and tele healthcare trends.

Solid uptake of Surface devices and Xbox Game Pass aided growth. The company is gaining from growing user base of its different applications including Office 365 commercial, and Dynamics. Also, it is well poised to expand the total addressable market through acquisitions of GitHub and ZeniMax Media.

The company has positive record of earnings surprises in recent quarters. However, macroeconomic weakness in job market and lower spend on advertising due to coronavirus pandemic are likely to weigh on LinkedIn and Search revenues. Also, delays in consulting business are anticipated to limit growth.

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

Shares of Tesla have literally been on fire lately, up +551.4% over the past year against the Zacks Domestic Automotive industry’s rise of +162.9%. The Zacks analyst believes that Tesla has a first-mover advantage in the EV space with high range vehicles, superior technology, and software edge.

Robust Model 3 demand, ramp up of Model Y production, Shanghai Gigafactory prospects, amazing line-up of upcoming products and aggressive expansion efforts bode well for the firm. However, high R&D, SG&A costs and massive capex may clip the margins.

Tesla is investing heavily to boost production capacity and sales as well as build gigafactories in Berlin and Austin, which are likely to strain its near-term prospects. Waning margins for Model S/X is another concern. Thus, investors are recommended to wait for a better entry point.

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

AT&T shares have lost -11.7% over the past six months against the Zacks Wireless National industry’s rise of +4.1%. The Zacks analyst believes that AT&T is well placed to benefit from the streaming services of its newly launched HBO Max and nationwide 5G deployment.

AT&T reported relatively healthy third-quarter 2020 results with solid subscriber growth backed by a resilient business model and robust cash flow position driven by a diligent execution of operational plans. While adjusted earnings marginally missed the Zacks Consensus Estimate, revenues beat the same despite coronavirus hitting top-line growth.

However, AT&T is witnessing a steady decline in linear TV subscribers, legacy services and wireline division. Continued cord-cutting remains a challenge as consumers cancel pay TV packages for cheaper streaming options. As it tries to woo customers with discounts, freebies and cash credits, margins tend to fall. Spectrum crunch in a saturated wireless market is another concern.

(You can read the full research report on AT&T here >>>)

Other noteworthy reports we are featuring today include Apple and Oracle.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                      

https://www.zacks.com                                          

 

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.