Top Research Reports for Verizon, ICICI Bank & MercadoLibre
Friday, August 4, 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 Verizon Communications Inc. (VZ), ICICI Bank Limited (IBN) and MercadoLibre, Inc. (MELI). 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 Verizon have declined -11.8% over the year-to-date period against the Zacks Wireless National industry’s decline of -13.0%. The company’s continued retail prepaid and postpaid net losses are hindering its top-line growth. Stiff competition from other major players and saturation in the U.S. wireless market is hurting profits.
Heavy spending on promotional activities to attract customers is also weighing on margins. It has reiterated its soft guidance for 2023 due to a challenging macroeconomic environment. Nevertheless, Verizon is witnessing significant 5G adoption and fixed wireless broadband momentum.
It is offering various mix and match pricing in both wireless and home broadband plans that has led to solid customer additions. Strong demand for Fios and fixed wireless products are tailwinds. Healthy traction in wireless business augurs well.
(You can read the full research report on Verizon here >>>)
ADRs of India's ICICI Bank have outperformed the Zacks Banks - Foreign industry over the past six months (+14.1% vs. +5.4%) reflecting the favorable growth outlook for the country. The company's first-quarter fiscal 2024 (ended Jun 30) results show higher revenues, robust loans and deposit balance and a rise in provisions. Increased dependence on domestic loans, a rise in retail loan demand, higher interest rates and a stable funding base are expected to support the company's financials.
Furthermore, efforts of digitizing banking operations will help generate non-interest income, thereby supporting revenue growth. However, weak asset quality remains a major near-term headwind. Macroeconomic concerns, including high inflation across the globe, make us apprehensive.
Moreover, elevated operating expenses, mainly on the back of technology investments and ongoing branch expansion initiatives, will likely impede the bottom-line growth.
(You can read the full research report on ICICI Bank here >>>)
Shares of Argentina-based MercadoLibre have outperformed the Zacks Internet - Commerce industry over the past year (+29.1% vs. -3.5%). The company’s revenues were driven by accelerating commerce and fintech revenues. Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company.
MercadoLibre’s rising gross merchandise volume (GMV) remained another positive. Strong shipment growth also contributed well to the reported results. MercadoLibre is benefiting from strength in its commerce and fintech businesses. Further, robust mobile-point-of-sale business and growing adoption of MercadoPago are driving the TPV.
Also, rapid adoption of Mobile Wallet remains a positive. Shares have outperformed the industry year to date. However, mounting expenses related to warehousing, free shipping subsidies and mPOS discounts are major concerns.
(You can read the full research report on MercadoLibre here >>>)
Other noteworthy reports we are featuring today include O'Reilly Automotive, Inc. (ORLY), Chipotle Mexican Grill, Inc. (CMG) and MetLife, Inc. (MET).
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
Verizon (VZ) Rides on Wireless Traction, Customer Additions
Technology, Loans Support ICICI Bank (IBN), High Costs Ail
MercadoLibre (MELI) Gains From Total Payment Volume Growth
Featured Reports
Store Expansion Aids O'Reilly's Sales (ORLY), High Costs Ail
While O'Reilly's revenues are getting a boost from store openings and distribution centers in profitable regions, the Zacks analyst is concerned about high SG&A costs and rising capex.
Strong Comps & Digital Efforts Aid Chipotle (CMG), High Cost Ail
Per the Zacks analyst, Chipotle (CMG) benefits from strong comparable restaurant sales growth, digital initiatives, and expansion efforts. However, commodity and wage inflation are a concern
MetLife's (MET) Cost-Cut Efforts & Strategic Buyouts Aid
Per the Zacks analyst, MetLife's cost-control measures are driving margins, while acquisitions are expanding its portfolio. However, lower variable investment income is concerning.
Biogen's (BIIB) Potential New Drugs Can Revive Growth
The Zacks analyst expects Biogen's potential new products, like Leqembi in Alzheimer's disease, Qalsody in ALS and zuranolone in depression, can help revive growth
Wabtec (WAB) Dividends, Buybacks Aid Amid Cost Troubles
The Zacks analyst is impressed by the company's efforts to reward its shareholders. High operating expenses are hurting the bottom line.
TechnipFMC (FTI) To Benefit from Next-Gen Subsea Suite
The Zacks analyst believes that TechnipFMC's Subsea 2.0 platform would enjoy fast-track adoption and produce further opportunities. However, limited offshore activity is a concern.
Sabre (SABR) Rides on Gradual Recovery in Travel Industry
Per the Zacks analyst, Sabre's Travel Solutions business is benefiting from the gradual recovery in global travel industry which is driving international and corporate bookings.
New Upgrades
New Product Development, Wide Market Reach Aid Eaton (ETN)
Per the Zacks analyst Eaton's operations in 175 countries across the world and development of new products through ongoing R&D investments will continue to drive demand and boost profitability.
Molson Coors (TAP) Gains From Brand Strength & Business Units
Per Zacks analyst, Molson Coors is gaining from strong performance across its portfolio, strength in business units and Revitalization Plan. Its worldwide brand volumes rose 5% in the second quarter.
Favorable Budget, Strategic Partnerships Aid Kratos (KTOS)
Per the Zacks analyst, strengthening U.S. defense fiscal budget should boost Kratos' growth momentum. Its strategic partnerships with other industry players will bolster its global footprint
New Downgrades
Lower Prices, Weak Demand Ail Huntsman (HUN)
Per the Zacks analyst, lower selling prices due to competitive pressure will weigh on the company's margins. Softer demand in all regions will also hurt sales volumes.
Lower IT Spending to Hurt Atlassian's (TEAM) Prospects
Per the Zacks Analyst, Atlassian's growth prospects might be hurt by soft IT spending as organizations are pushing back their large IT investment plans amid the macroeconomic headwinds.
Higher Debt Level, Commercial Loans to Hurt Webster (WBS)
Per the Zacks analyst, high debt levels and low liquidity make Webster Financial vulnerable to default on debt obligations. Unsustainable capital deployments and commercial loan concentration are woes
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
MetLife, Inc. (MET) : Free Stock Analysis Report
O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
ICICI Bank Limited (IBN) : Free Stock Analysis Report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
