Top Analyst Reports for Alphabet, T-Mobile & AMD

Friday, February 4, 2022

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 Alphabet Inc. (GOOGL), T-Mobile US, Inc. (TMUS), and Advanced Micro Devices, Inc. (AMD). 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 Alphabet have outperformed the S&P 500 over the past year (+37% vs. +16.8%), with the momentum expected to continue following the blockbuster December-quarter results. The Zacks analyst believes that Alphabet has been benefiting from a dominant search market position, an expanding cloud footprint and a strengthening presence in the smart home market.

Alphabet reported strong fourth quarter results wherein both earnings and revenues grew year over year. Solid momentum across search, advertising, cloud and YouTube businesses supported the results. Major updates in its search segment have been enhancing search results. Focus on AI techniques and the home automation space should aid business growth in the long term.

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

T-Mobile shares have gained +4.1% in the year to date period against the Zacks National Wireless industry’s rise of +3.3%. Post its merger with Sprint, TMUS has been offering its existing services at a discounted rate and will continue to do so for the next three years.

The Zacks analyst believes that this new entity’s network, that has 14 times more capacity than on a standalone basis, has enabled it to leapfrog the competition in network capability and customer experience.

T-Mobile’s Ultra Capacity 5G covered 210 million people and Extended Range 5G covered 94% of people at the end of 2021. TMUS operates in a fiercely competitive and almost saturated U.S. telecom market, though. Promotional activities to lure customers from rivals have also been weighing on its margins.

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

Shares of Advanced Micro Devices have gained +6.9% in the last six months against the Zacks Computer Software industry’s gain of +2.2%. The Zacks analyst believes that AMD has been benefiting from robust performance of its Computing and Graphics, and Enterprise Embedded and Semi-Custom segments.

Increasing proliferation of AI and Machine Learning in industries like cloud, gaming and supercomputing domain remains a tailwind. Growing clout of 7 nanometer (nm) products in the data center vertical, driven by work-from-home and online learning trends, is a key catalyst. AMD provided strong 2022 guidance for revenues on the back of robust growth across all businesses.

(You can read the full research report on Advanced Micro Devices here >>>)

Other noteworthy reports we are featuring today include Mondelez International, Inc. (MDLZ), Chubb Limited (CB) and Duke Energy Corporation (DUK).

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

Alphabet (GOOGL) Benefits From Cloud & Search Initiatives

5G Leadership & Customer Growth to Drive T-Mobile (TMUS)

Robust Product Portfolio & Partnerships Aid AMD's Prospects

Featured Reports

Emerging Market Strength Aids Mondelez (MDLZ), Costs High
Per the Zacks analyst, Mondelez is gaining on emerging markets strength, wherein organic revenues grew about 11% in the fourth quarter.

Chubb (CB) Continues to Gain From Strategic Acquisitions
Per the Zacks analyst, buyouts have helped Chubb in domestic as well as international expansion, boosted the portfolio of products and services, and aided revenue growth.

Investments Aid Duke Energy (DUK), Storm Costs Pose Risk
Per the Zacks analyst, solid investments in infrastructure and expansion projects boost Duke Energy's growth.

Humana's (HUM) Solid Medical Business Aids, High Costs Ail
Per the Zacks Analyst, Humana's robust Medicaid business will help it expand the Retail portfolio, in turn boosting top-line growth.

Johnson Controls (JCI) Rides on Buyout Spree Amid High Debt
While acquisitions of Synchrony, EasyIO BEMS product line, Qolsys, and Silent-Aire are fueling Johnson Controls' revenues, the Zacks analyst is worried about the huge debt pile of $7.5 billion.

Kinder Morgan (KMI) to Benefit From Growing Demand for RNG
The Zacks analyst is upbeat about Kinder Morgan's huge growth potential in the RNG business, as North America RNG demand is expected to rise significantly in the next two decades.

Software & Technology Investments Aid Robert Half (RHI)
The Zacks analyst believes that prudent investments in software initiatives and technology infrastructure along with a broad and deep client database, ensure long-term growth for Robert Half.

New Upgrades

Pioneer Natural (PXD) Banks on the High-Margin Midland Basin
The Zacks analyst believes that Pioneer Natural's production outlook is bright since it is the leading upstream operator in the oil-rich and high-margin Midland basin.

Buyouts & Focus on Entry-Level Buyers Aid PulteGroup (PHM)
Per the Zacks analyst, PulteGroup continues to benefit from its land acquisition strategies that have resulted in higher revenues and profitability.

Rising Revenues, Expansion Strategies Aid Evercore (EVR)
The Zacks analyst views Evercore's expansion of investment banking geographically and the client base in advisory solutions as favorable. Strength in advisory fees will support revenue growth.

New Downgrades

COVID and China Hurting AstraZeneca (AZN) Sales
The Zacks analyst points out that sales of some of AstraZeneca's (AZN) medicines are being hurt due to COVID-19. Sales are also slowing down in its key market, China, due to pricing pressure

Elevated Input Costs to Weigh on Vale's (VALE) Margins
Per the Zacks analyst higher input costs, particularly diesel and freight costs will hurt Vale's margins. Also, recent production disruptions due to heavy rainfall in Brazil add to its woes.

Stiff Competition & High Costs Impair U.S. Cellular (USM)
Per the Zacks analyst, U.S. Cellular is challenged by increasing costs associated with network integration, aggressive equipment pricing, and wireless technology upgrades.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.