Top Analyst Reports for Tesla, Comcast & Intuit
Monday, July 31, 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 Tesla, Inc. (TSLA), Comcast Corporation (CMCSA) and Intuit Inc. (INTU). 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 >>>
Tesla shares have outperformed the Zacks Automotive - Domestic industry over the past six months (+46.6% vs. +32.1%). In the last reported quarter, the electric vehicle (EV) giant witnessed record production, deliveries and revenues. We expect deliveries to see an annualized growth of around 36% in 2023.
Production ramp-up at gigafactory 4 (in Berlin) and 5 (in Austin) and introduction of new models, including Semi and Cybertruck, are set to support long-term deliveries growth. The Zacks analyst anticipates automotive revenues to rise more than 18% this year. Additionally, Tesla’s energy generation and storage revenues outlook is promising.
Falling debt levels and solid potential of its charging business are other positives. While shrinking margins remain a near-term concern, we expect Tesla to deliver outsized returns in the long run on the back of output ramp-up and introduction of new models.
(You can read the full research report on Tesla here >>>)
Shares of Comcast have outperformed the Zacks Cable Television industry over the past year (+24.9% vs. +4.5%). The company is benefiting from a growing wireless subscriber base as witnessed in the second quarter of 2023. Comcast’s plan to transition to DOCSIS 4.0 is noteworthy. The technology will help it in expanding much faster and at a lower cost compared to competitors.
Recovery in park and movie business bodes well for Comcast’s profitability. Its streaming service Peacock is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.
However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Moreover, broadband prospects are suffering from increased competition from fixed wireless as well as fiber. Additionally, a leveraged balance sheet is a major concern.
(You can read the full research report on Comcast here >>>)
Shares of Intuit have gained +15.4% over the past year against the Zacks Computer - Software industry’s gain of +24.7%. The company is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues. The TurboTax Live offering is also driving growth in the Consumer tax business.
Solid momentum in the company’s lending product, QuickBooks Capital, remains a positive. Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run.
Nonetheless, macroeconomic and geopolitical headwinds might significantly hurt small businesses operations, thereby posing risks for Intuit’s top-line growth. Additionally, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting bottom-line results in the near term.
(You can read the full research report on Intuit here >>>)
Other noteworthy reports we are featuring today include Intel Corporation (INTC), Carrier Global Corporation (CARR) and Old Dominion Freight Line, Inc. (ODFL).
Director of Research
Sheraz Mian
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>>>
Today's Must Read
Tesla (TSLA) Rides High on Robust Model 3/Y Deliveries
Wireless Subscriber Gain Drives Comcast's (CMCSA) Prospects
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Featured Reports
Intel (INTC) Rides on Portfolio Strength, Mobileye Traction
Per the Zacks analyst, Intel is likely to benefit from solid traction of the Mobileye business along with a strong focus on market diversification, innovation and a comprehensive product portfolio.
Carrier (CARR) Benefits From Strength in the HVAC Segment
Per the Zacks analyst, strength in the North America residential, light commercial and commercial Heating, Ventilating and Air Conditioning (HVAC) businesses is driving Carrier's HVAC segment.
Old Dominion (ODFL) Dividends, Buybacks Aid Amid Sales Woes
The Zacks analyst is impressed with the company's efforts to reward its shareholders. Weakness pertaining to less-than-truckload revenues represents a huge concern.
Hess (HES) to Gain From Guyana's Uaru Development Project
Hess' Uaru development in the Stabroek block offshore Guyana will develop an estimated resource of more than 800 million oil barrels. Yet, its aggressive capital budget concerns the Zacks analyst.
Solid Investments Aid PSEG (PEG) Growth, Weak Solvency Woes
Per the Zacks analyst, Public Service Enterprise Group's, also known as PSEG, consistent investments in infrastructure projects may aid its growth. Yet, its weak solvency position remains a bottleneck
Dr. Reddy's (RDY) Global Generics Business to Boost Sales
Per the Zacks analyst, Dr. Reddy's has a strong foothold in the generics market with new product launches and pending filings. The company's strategic initiatives are expected to mitigate challenges.
Growing Patient Volumes Aid Acadia Healthcare (ACHC), Costs Ail
Per the Zacks analyst, improving patient volumes driven by strong demand will boost Acadia Healthcare's profits. However, escalating expenses remain a concern for the company.
New Upgrades
Church & Dwight (CHD) Benefits From Strategic Pricing Action
Per the Zacks analyst, Church & Dwight is gaining on efficient pricing actions. Its second-quarter organic sales growth was backed by a favorable product mix and pricing to the tune of 5.8%.
Booz Allen (BAH) Benefits From Differentiated Business Models
Per the Zacks analyst, Booz Allen Hamilton has developed its solutions business in a way that allows it to create differentiated business models and sales channels, and increase client acquisition.
Spec Strategy & Housing Demand Benefit Meritage Homes (MTH)
Per the Zacks analyst, robust spec strategy, improved cycle times and normalizing housing market aid Meritage Homes. Also, lower cancellation rates add to the tailwinds.
New Downgrades
Silgan (SLGN) Remains Troubled by Low Volumes & Higher Costs
The Zacks analyst is concerned that Silgan's top-line results will continue to bear the brunt of low volume and mix, while elevated costs and the ongoing supply-chain challenges will hurt margins.
High Cost & Loan Concentration to Hurt UMB Financial (UMBF)
Per the Zacks analyst, UMB Financial's high costs are likely to limit bottom-line growth. Also, intense competition and commercial loan concentration are concerning.
Lower Transactions Amid High Rates to Hurt CBRE Group (CBRE)
Per the Zacks analyst, lower commercial real estate transactions amid persistent macroeconomic uncertainty and high interest rates offer a bleak prospect for CBRE Group's transaction-based businesses.
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Intel Corporation (INTC) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Carrier Global Corporation (CARR) : Free Stock Analysis Report
