Top Stock Reports For Walmart, AT&T & Tesla

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 Walmart Inc. (WMT), AT&T Inc. (T) and Tesla, Inc. (TSLA). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

Walmart’s shares have outperformed the Zacks Retail - Supermarkets industry over the past one-year period (+19.6% vs. +16.0%) and the Zacks analyst believes that Walmart’s shares have outpaced the industry in the past year, backed by focus on strengthening e-commerce and store operations. These factors helped the company retain its sturdy comps trend in third-quarter fiscal 2020, wherein earnings marked its seventh straight beat and U.S. comps rose for the 21st straight time.

The company, by the way, is making efforts to improve its International unit by shifting focus to profitable countries. However, Flipkart’s addition was a drag on Walmart’s bottom line, which is expected to continue in fiscal 2020. This along with a compelling pricing strategy and tariff-related worries is a threat to margins.

Shares of AT&T have gained 24.7% in the past one-year period against the Zacks Wireless National industry’s rise of 17.8%. The Zacks analyst believes that the company remains committed to its three-year financial framework, which is expected to drive significant improvement in margins and bottom-line growth with sustained investments and debt reduction. It aims to deploy a standards-based, nationwide mobile 5G network in 2020. AT&T anticipates gaining a competitive edge over rivals through edge computing services and healthy dividend payout.

However, the company is witnessing a steady decline in linear TV subscribers and legacy services. Its wireline division is facing loss in access line due to competitive pressure from VoIP service providers.

Tesla’s shares have outperformed the Zacks Automotive – Domestic industry over the past one-year period (+142.7% vs. +45.0%). The Zacks analyst believes that with Model 3 sedan being its flagship vehicle, Tesla has established itself as a leader in the EV segment. Rising Model 3 delivery, which forms bulk of the automaker’s overall deliveries, is aiding the company’s top-line growth. Tesla’s upcoming product launches, including Model Y and Semi Truck, are expected to further boost prospects.

However, with China being an important market for Tesla, economic slowdown in the country is weighing on the firm. Tesla’s massive debt and high capex also play spoilsports.

Other noteworthy reports we are featuring today include Royal Dutch Shell plc (RDS-A), General Motors Company (GM) and Verizon Communications Inc. (VZ).

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.