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Top Analyst Reports for Verizon, Lockheed & American Express

Mark Vickery

Thursday, June 25, 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 Verizon Communications (VZ), Lockheed Martin (LMT) and American Express (AXP). 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 >>>

Verizon’s shares have underperformed the Zacks Wireless National industry’s over the past year (-5.3% vs. -1.4%). The Zacks analyst believes that the company’s focus on online content delivery, mobile video and online advertising should stoke growth. Verizon's 5G Ultra Wideband network build-up is likely to accelerate a 5G rollout.

Despite crisis stemming from the coronavirus pandemic, Verizon started 2020 on a positive note primarily owing to the wireless business. It is also changing revenue mix toward newer growth services like cloud, security and professional services.

However, Verizon continues to struggle in a competitive U.S. wireless market with muted demand and tweaked 2020 guidance amid the coronavirus-led turmoil. The company's wireline division is struggling with losses in access lines due to competitive pressure from VoIP service providers. Also, Verizon is spending heavily on promotion and lucrative discounts to woo customers, which further erodes profitability.

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

Shares of Lockheed Martin have lost -8.9% over the past six months against the Zacks Aerospace Defense industry’s fall of -31.6%. The Zacks analyst believes that Lockheed Martin faces intense global competition for its broad portfolio of products and services. Furthermore, forced cost reduction initiatives for the F-35 program might hamper its operating results.

Lockheed Martin enjoys strong demand for its high-end military equipment in domestic and international markets, being the world's largest defense contractor. Expansionary budgetary provisions made by the current U.S. administration will immensely boost this defense prime's business. It continues to be a strong cash generator.

Furthermore, forced cost reduction initiatives for the F-35 program might hamper its operating results. America and Turkey's tiff on the latter accepting Russian products may hurt Lockheed’s component supply from Turkey. It is also facing performance issues in relation to some of its products, which in turn may hurt its results.

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

American Express’ shares have gained +3.3% over the past three months against the Zacks Financial Miscellaneous Services industry’s rise of +12.8%. The Zacks analyst believes that American Express’ strategic initiatives will help it in achieving growth and recover from the current weak market environment.

A decline in marketing expenses and card member service is likely to aid margins. The company’s investment grade rating along with a stable outlook places it in a favorable position to secure funding at reasonable costs and keep intact its borrowing capacity.

Nevertheless, maintenance of sufficient level of capital will provide flexibility to support future business growth. However, due to the COVID-19 outbreak, American Express is persistently witnessing weakness in spending volumes, which is likely to hurt its full-year operating performance. Drained profitability might continue given the adverse operating scenario.  

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

Other noteworthy reports we are featuring today include Boeing (BA), Zoom Video Communications (ZM) and Micron Technology (MU).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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>>>

Today's Must Read

Verizon (VZ) Rides on Wireless Networks Amid COVID-19 Hiccups

Order Growth Aids Lockheed (LMT), Tiff With Turkey May Hurt

Decline in Expenses to Aid American Express' (AXP) Margins

Featured Reports

Strategic Acquisitions Aids Boeing (BA), Low Deliveries Hurt

Per the Zacks Analyst, strategic acquisitions made by Boeing, such as overtaking KLX, boosts growth. However, risks related to lower 737 deliveries raises concerns.

Work-From-Home & Online Learning Wave Aids Zoom Video (ZM)

Per the Zacks analyst, Zoom Video is benefiting from the coronavirus-induced remote working and Internet-based education wave.

Micron (MU) Benefits from Growing Memory-Chip Demand

Per the Zacks Analyst, Micron is growing on solid memory-chip demand from PC manufacturers and data-center operators as the lockdown has boosted the work-and-learn-from-home trend.

Favorable Budget to Aid Northrop (NOC) Amid Supplier Issue

Per the Zacks analyst, encouraging spending plans in U.S. defense budget boost Northrop's growth prospects.

Solid Medicare Business Aids, High Costs Ail Humana (HUM)

Per the Zacks analyst, Humana's Medicare business has been performing strongly from past many quarters, which contributes to its overall growth.

General Mills' (GIS) Gains From Coronavirus-Led Demand

Per the Zacks analyst, General Mills' (GIS) is gaining from higher demand due to coronavirus-led stockpiling. Notably, the company expects organic sales to grow double digits in fiscal fourth-quarter.

New Features & Security Focus Drives Twitter's (TWTR) Growth

Twitter adds new features and ramps up its security efforts to lower abuse, which per the Zacks analyst is boosting user growth.

New Upgrades

Owens Corning (OC) Rides on High Insulation Product Demand

Per the Zacks analyst, strong demand for insulating products owing to rising construction activity, and improving remodeling and repair activity raises hope for Owens Corning.

Robust U.S. Spine Arm, HEDRON Uptake Aid Globus Medical (GMED)

The Zacks analyst is impressed with robust demand for various products in Globus Medical's HEDRON line of 3D printed interbody spacers.

Solid Codman Business Aids Integra (IART) on Product Uptakes

The Zacks analyst is positive about the fact that despite the pandemic-led slowdown, Integra's Codman Specialty Surgical arm is showing organic growth across neurosurgery franchises on new launches.

New Downgrades

Weak Markets, High Costs Ail International Flavors (IFF)

Per the Zacks analyst, International Flavors' results will bear the brunt of the slowdown in demand in few of its end markets and higher costs owing to the coronavirus pandemic.

C.H. Robinson (CHRW) Stung by Flagging Freight Backdrop

The Zacks analyst is anxious about depleting truckload volumes due to weak freight environment. The company's feeble liquidity also bothers.

Lower Lithium Prices, Soft Demand to Hurt Albemarle (ALB)

Per the Zacks analyst, Albemarle faces headwind from lower lithium prices due to oversupply in the market. Weak demand across major markets including automotive will also hurt its sales volumes.

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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
The Boeing Company (BA) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
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