Top research reports for PepsiCo, T-Mobile and BlackRock

Monday, April 4, 2022

Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including PepsiCo, Inc. (PEP), T-Mobile US, Inc. (TMUS) and BlackRock, Inc. (BLK). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.

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

Shares of PepsiCo outperformed the soft drink industry Zacks Beverages over the past one-year period (+21.9% vs. +16.7%) on the back of strong operational performance, as evidenced by the recent quarterly report when growth volumes and the strength of the price/mix ratio led to an outperformance . Earnings were in line with estimates and improved year over year. The company also benefits from investments in brands, go-to-market systems, supply chains, manufacturing capacity and digital capabilities to create competitive advantages. It also benefits from the resilience and strength of global convenience food and beverage companies.

In 2022, it expects to maintain the strength and momentum seen in 2021. However, PepsiCo experienced margin pressures in the fourth quarter of 2021 due to the effects of supply chain disruptions and the negative effects of inflation in the cost of labour, transport and raw materials.

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

Shares of T-Mobile have outperformed the Zacks Wireless National industry year-to-date (+12.7% vs. +3.7%). The company continues to expand its 5G network to deliver fast and affordable service nationwide. He announced a series of steps to accelerate 5G developer innovation. Initiatives include a new developer platform, innovation hub, venture capital investments, T-Mobile Accelerator participants, and 5G partnerships with Disney and Red Bull. The Zacks analyst believes that dubbed 5G Forward, these moves will strengthen the 5G innovation ecosystem and help creators build the future of 5G. T-Mobile’s commitment to building the world’s best nationwide 5G network has the potential to bring superfast speeds to urban and rural areas.

However, it operates in a fiercely competitive and nearly saturated U.S. telecommunications market. Low-cost plans for consumers and small businesses did not improve the bottom line. Promotional activities aimed at attracting rivals’ customers have hurt its profitability.

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

Shares of black rock have outperformed the Zacks Financial – Investment Management sector over the past year (+0.2% vs -9.7%). The Zacks analyst believes the company has an impressive track record of earnings surprises. Its earnings have exceeded Zacks’ consensus estimate in each of the past four quarters. Supported by a solid liquidity position, BlackRock continues its efforts to restructure the equity business. This, coupled with strategic acquisitions, will likely continue to contribute to revenue growth and expand its market share and footprint globally. The steady improvement in the balance of assets under management (AUM) will probably further support the turnover.

Its capital deployment activities appear to be sustainable, through which it will continue to build shareholder value. However, high expenses (due to higher administrative costs) could hurt profits to some extent. The company’s heavy reliance on foreign revenue is another concern.

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

Other noteworthy reports we feature today include Automatic Data Processing, Inc. (ADP), Charter Communications, Inc. (CHTR), and Block, Inc. (SQ).

Sheraz Mian

Director of Research

Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Earnings overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>

To read today

Dynamism of the snacking activity of PepsiCo (PEP) to promote growth

5G leadership and customer growth to drive T-Mobile (TMUS)

Redemptions, AUM Balance Aid BlackRock (BLK), High Costs Garlic

Featured Reports

ADP bets on strategic acquisitions in a context of technological challenges
The Zacks analyst likes ADP’s buyout strategy to strengthen its position in the human capital management market. The pressure to stay technologically up-to-date to meet diverse customer demands remains a concern.

Charter of Benefits for Mobile and Internet Subscribers (CHTR)
According to the Zacks analyst, growing subscribers in residential and business Internet services as well as an expanding Spectrum Mobile user base are driving Charter’s revenue.

Block (SQ) Banks on Solid Cash App Adoption, Bitcoin Growth
According to the Zacks analyst, Block is benefiting from strong Cash App engagement and its growing active customer base. Additionally, the growing revenue from bitcoin thanks to the robustness of the Cash app helps well.

Illumina (ILMN) bets on strategic pacts amid strong rivalry
The Zacks analyst is optimistic about recent Illumina partnerships, including the Agendia pact to advance the use of NGS for decentralized oncology testing. Fierce competition remains a concern.

Investments Aid Ameren (AEE), misfortune of high program spending
According to the Zacks analyst, systematic investment in infrastructure projects is driving Ameren’s growth. Still, the stock incurs high expenses to comply with air emissions regulations that can hurt its bottom line.

HR bets on strategic initiatives in the face of supply chain challenges
HR’s focus on strategic initiatives to improve profit margins as well as the strong performance of new galleries is encouraging, according to the Zacks analyst. Yet supply chain disruptions are risks.

Acquisitions boost Humana (HUM), high costs hurt
The Zacks analyst says the buyouts have helped the company expand its business and achieve long-term growth. However, escalating spending continues to weigh on margins.

New upgrades

Cactus (WHD) to benefit from higher wellhead equipment sales
The Zacks analyst is optimistic about higher sales of wellheads and production-related equipment at Cactus due to increased customer drilling activity. This will result in increased cash flow.

Dow (DOW) Cost Stock Earnings, Project Investment
According to the Zacks analyst, Dow is well positioned to benefit from cost savings and productivity initiatives and from its investment in high-return growth projects.

Acquisitions and expansion moves Aid Steel Dynamics (STLD)
According to the Zacks analyst, the acquisitions will expand the company’s product portfolio and shipping capabilities. Expansion actions should also increase its capacity and increase its profitability.

New downgrades

Biogen (BIIB) injured by slow launch of Aduhelm, competition
The Zacks analyst believes the launch of Aduhelm has been slow due to reimbursement uncertainty. Increased competition is hurting Spinraza’s sales. Several generic launches are hurting sales of Tecfidera.

Burlington (BURL) stores grapple with higher SG&A spending
According to the Zacks analyst, Burlington Stores has witnessed an increase in SG&A spending due to increased product supply costs as well as high transportation costs. This has hurt margins for a while now.

Higher costs of taking over Rasmussen Garlic American Public (APEI)
According to the Zacks analyst, American Public faced higher costs and expenses, primarily attributed to the inclusion of Rasmussen University, increased professional fees and advertising costs.

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Automatic Data Processing, Inc. (ADP): Free Inventory Analysis Report

BlackRock, Inc. (BLK): Free Stock Analysis Report

PepsiCo, Inc. (PEP): Free Stock Analysis Report

Charter Communications, Inc. (CHTR): Free Stock Analysis Report

TMobile US, Inc. (TMUS): Free Stock Analysis Report

Block, Inc. (SQ): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.