Monday, November 25, 2024

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 Costco Wholesale Corp. (COST), T-Mobile US, Inc. (TMUS) and Uber Technologies, Inc. (UBER), as well as two micro-cap stocks, SandRidge Energy, Inc. (SD) and Elite Pharmaceuticals, Inc. (ELTP). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Costco’s shares have outperformed the Zacks Retail – Discount Stores industry over the last six months (+19.0% vs. +9.5%). The Zacks analyst believes that strategic investments, a customer-centric approach, merchandise initiatives and an emphasis on membership growth have been helping the company.

However, Costco faces stiff competition from BJ’s Wholesale Club and Sam’s Club, a division of Walmart Stores. These two rivals follow similar business models. Also, Costco's global presence exposes an inherent vulnerability to foreign currency fluctuations.

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

T-Mobile US’s shares have outperformed the Zacks Wireless National industry over the past year (+60.1% vs. +39.1%). The Zacks analyst believes that solid demand for postpaid services, solid growth in free cash flow and efficient capital management have aided the company.

Yet, the highly competitive and saturated nature of the U.S. wireless market could adversely affect its financial results. Declining prepaid ARPU remains a concern.

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

Shares of Uber have outperformed the Zacks Internet - Services industry over the past two years (+157.6% vs. +73.5%). Per the Zacks analyst, the company’s efforts to expand its delivery operations through successive acquisitions are encouraging. Continued recovery in Mobility operations is also aiding the company.

However, Uber continues to witness high costs and expenses owing to a rise in sales and marketing expenses and cost of revenues. Increased spending on driver incentives is also pushing up costs. High debt levels are bothersome as well.

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

Shares of SandRidge Energy have underperformed the Zacks Oil and Gas – Integrated – United States industry over the past year (-14.4% vs. -2.0%). Per the Zacks analyst, the company faces significant challenges due to declining natural gas prices and production volumes, which are pressuring revenues, cash flow and profitability. Its heavy reliance on the Mid-Continent region increases its exposure to regional risks.

Yet, recent strategic acquisitions targeted at enhancing the company’s stature are a part of SandRidge's ongoing efforts to optimize its asset base.

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

Shares of Elite Pharma have outperformed the Zacks Medical – Drugs industry over the past year (+300.5% vs. +5.5%). Per the Zacks analyst, success of the Elite label products and expanding portfolio like high-value Abbreviated New Drug Applications for medications like Methotrexate and controlled substances have benefited. Its recent facility expansion enhances manufacturing capacity, supporting future product launches.

Yet, risks include customer concentration, pricing pressure from large buyers, intense competition, and regulatory challenges related to controlled substances. Supply chain vulnerabilities and potential overextension in product launches are other concerns.

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

Other noteworthy reports we are featuring today include NVIDIA Corp. (NVDA), Chubb Ltd. (CB) and ICICI Bank Ltd. (IBN).

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

Decent Comparable Sales Run to Fuel Costco's (COST) Top Line

T-Mobile (TMUS) Rides on Healthy Demand for Postpaid Services

Uber (UBER) Rides on Delivery Business Amid Rising Expenses

Featured Reports

Strong Demand for Key Drugs Drive BioMarin's (BMRN) Sales
While BioMarin's key drugs like Vimzim and Naglazyme continue to drive sales, the Zacks Analyst is encouraged by rapid uptake for dwarfism drug Voxzogo which has opened up a new sales opportunity.

Copart (CPRT) to Gain From Purple Wave Buyout Amid High Costs
Per the Zacks analyst, Purple Wave's current markets provide enough opportunities for Copart to attract new sellers. However, rising G&A remains a concern.

Solid American Income Aids Globe Life (GL), Expenses Hurt
Per the Zacks analyst, Globe Life is set to grow on solid American Income distribution channel, which drives the premium income and underwriting margin. However, high costs remain a concern.

Technology, Loans Support ICICI Bank (IBN), High Costs a Woe
Per the Zacks analyst, ICICI Bank's efforts to digitize operations, rising rates and steady loan and deposit growth will aid profitability. Yet, weak credit quality and higher costs are key headwinds.

Durango Expansion Aids Red Rock Resorts (RRR), Costs High
Per the Zacks analyst, Red Rock Resorts benefits from strong performances at Las Vegas and Durango Casino Resort. Also focus on development projects bode well. However, high costs are a concern.

Better Pricing, New Business Growth Drive Chubb Limited (CB)
Per the Zacks analyst, Chubb is set to grow on better pricing, new business growth and high renewal rates. Yet, exposure to cat loss induces volatility while rising costs pressurize margins.

Solid Tower Demand & Investments Aid American Tower (AMT)
Per the Zacks analyst, American Tower is expected to gain from the network investments by wireless carriers amid decent growth in wireless data consumption. However, customer concentration ail.

New Upgrades

Investments & Clean Power Generation Aid Avangrid (AGR)
Per the Zacks analyst, Avangrid's consistent investments will assist in upgrading its infrastructure. An expanding wind and solar generation portfolio will boost the company's performance.

NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships
Per the Zacks analyst, rapid adoption of NVIDIA's GPUs in the gaming and data center end markets is a key growth driver. Partnership with companies like Arrow, Baidu, Daimler and Bosch is a tailwind.

Strength in Thrombectomy Continues to Aid Surmodics (SRDX)
The Zacks analyst is upbeat about Surmodics' continued potential in its thrombectomy products. Solid efforts to improve its research and development stature is an added plus.

New Downgrades

Heavy Reliance on One Customer to Hurt Antero Midstream (AM)
Per the Zacks analyst, Antero Midstream's heavy reliance on Antero Resources as its primary customer makes it vulnerable to any negative development in the latter's production business.

Maro Headwinds, Rising Expenses Weaken America Movil (AMX)
Per the Zacks analyst, America Movil's performance in certain regions is adversely impacted by various macroeconomic and forex woes. Increasing costs and stiff rivalry are other headwinds.

Weak End-Market Demand Hurts Skyworks' (SWKS) Prospects
Per the Zacks analyst, Skyworks is suffering from high inventory levels, uneven demand across segments, and muted global demand in automotive and industrial markets

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Chubb Limited (CB) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

ICICI Bank Limited (IBN) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report

Uber Technologies, Inc. (UBER) : Free Stock Analysis Report

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