Top Analyst Reports for Apple, Amazon & T-Mobile

Thursday, November 5, 2020

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 Apple (AAPL), Amazon.com (AMZN) and T-Mobile US (TMUS). 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 >>>

Apple shares have outperformed the S&P 500 index in the year-to-date period (+56.5% vs. +7.4%) on the back of continued momentum in the Services business, strong adoption of Apple Pay and growing Apple Music subscriber base.

Apple’s fourth-quarter fiscal 2020 results reflected continued momentum in the Services segment, driven by a robust performance of App Store, Apple Music, video, and cloud services. Moreover, iPad, Mac and Wearables contributed strongly to the quarterly results. However, iPhone sales declined due to weakness in China and absence of the new iPhone.

Apple did not provide any guidance due to uncertainties triggered by the pandemic. However, the company expects iPhone sales to grow in the first quarter of fiscal 2021. Apple’s near-term prospects are bright, driven by new iPhones that support 5G, revamped iPad and Mac line-up of devices, health-focused Apple Watch 6 and robust growth in the Services business. 

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

Shares of Amazon have gained +80.5% over the past year against the broader market’s rise of +12.7%, with the company benefiting from coronavirus-led spike in online orders which drove growth in its online stores sales. Moreover, surge in online grocery shopping was a major positive.

Additionally, solid Prime momentum owing to ultrafast delivery services and expanding content portfolio remained tailwind. Further, strengthening AWS services and its growing adoption rate contributed well. Additionally, improving Alexa skills and features remained a major positive.

Expanding smart home products offerings were tailwinds. The stock has outperformed its industry on a year-to-date basis. However, accelerating coronavirus related expenses remain major concerns. Also, foreign exchange headwinds and rising cloud competition are risks.

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

T-Mobile’s shares have gained +34% over the past six months against the Zacks National Wireless industry’s rise of +9%. The Zacks analyst believes that the company is likely to gain from the deployment of a mid-band 5G spectrum in multiple locations.

T-Mobile has deployed its mid-band 5G spectrum in about 410 cities and towns across the United States. The company has the largest nationwide 5G network, covering more than 250 million people across 1.3 million square miles. It surpassed AT&T in total branded customers in postpaid and prepaid to become America’s #2 wireless operator.

T-Mobile aims to deliver $43 billion of synergies and achieve $6 billion of annualized cost savings from its merger with Sprint. It plans to continue lighting up the 5G spectrum at an aggressive pace through 2020 and beyond. However, the company operates in a fiercely competitive and almost saturated U.S. telecom market. Low-priced service plans for consumers and small enterprises have not improved the bottom line.

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

Other noteworthy reports we are featuring today include UnitedHealth Group (UNH), Mondelez International (MDLZ) and Automatic Data Processing (ADP).

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Sheraz Mian

Director of Research                                                             

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

Robust Portfolio, Services Strength to Benefit Apple (AAPL)

Surge in Online Orders & AWS Momentum Benefit Amazon (AMZN)

T-Mobile (TMUS) Rides on Sprint Merger Synergies Amid Rivalry

Featured Reports

Solid Top Line & Strong Cash Flows Drive UnitedHealth (UNH)

Per the Zacks analyst, strategic initiatives have enhanced the company's capabilities, which in turn have bolstered the top line.

Mondelez (MDLZ) Organic Sales Gain on Solid Pricing Actions

Per the Zacks analyst, Mondelez's organic sales have been gaining from its strategic pricing initiatives. During the third quarter, balanced pricing aided organic sales growth of 4.4%.

ADP Rides on Strategic Buyouts Amid Technological Challenges

The Zacks analyst likes ADP's buyout strategy to boost its position in the human capital management market.

Vertex's (VRTX) Trikafta Ups 2020 Sales, Focus on Pipeline

Per the Zacks analyst, Vertex's triple combo cystic fibrosis pill, Trikafta has been a key top-line driver. Its non-CF pipeline is progressing rapidly with multiple data readouts expected by 2021.

Buyouts, Diversification Aid Moody's (MCO), High Costs a Woe

Per the Zacks analyst, synergies from strategic acquisitions and efforts to diversify revenues will support Moody's. Yet, mounting costs remain a concern.

Marriott (MAR) Banks on Expansion Initiatives, RevPAR Dismal

Per the Zacks analyst, Marriott continues to focus on acquisitions in order to expand its footprint globally. However, dismal revenue per available room and occupancy rate remains a concern.

U.S. Pharmaceutical Arm Aids McKesson (MCK), Costs a Woe

Per the Zacks analyst, strength in U.S. Pharmaceutical and Specialty Solutions unit driven by market growth continues to aid McKesson. However, an increase in operating expenses raises concern.

New Upgrades

Arthur J. Gallagher (AJG) Banks on Strategic Acquisitions

Per the Zacks analyst, a number of acquisitions have aided Arthur J. Gallagher to enhance its capabilities, witness inorganic growth, which in turn, position it well for growth.

CDW Rides on Digital Shift, Remote Working Tools Demand

Per the Zacks analyst, CDW is benefiting from the ongoing digital transformation and increased demand for products that aid remote working and operation continuity plans amid the coronavirus crisis.

Robust Wireless Unit Drives Telephone and Data Systems (TDS)

Per the Zacks analyst, Telephone and Data Systems is benefiting from a network modernization program that includes the deployment of 5G technology at its wireless subsidiary - U.S. Cellular.

New Downgrades

Low Production Volume & High Costs to Hurt Magna (MGA)

Declining light vehicle production amid coronavirus is likely to reduce the demand for Magna's products. Soaring commodity costs will also dent the firm's bottom line, per the Zacks analyst.

Pacira's (PCRX) Exparel Aids Growth, High Dependence a Woe

Per the Zacks analyst, Pacira's flagship product Exparel has been driving revenues. Its label expansion studies are also promising. However, heavy dependence on Exparel for growth remains a concern.

Corcept's (CORT) High Reliance On Korlym for Revenues a Woe

Per the Zacks analyst, Corcept is solely dependent on its Cushing's syndrome drug, Korlym for revenues, which is a concern. Stiff competition in the target market remains a headwind too.

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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
 
TMobile US, Inc. (TMUS) : Free Stock Analysis Report
 
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
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