Top research reports for Apple, Tesla and T-Mobile US

Monday, September 30, 2024

The Zacks Research Daily showcases the best research from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Tesla, Inc. (TSLA), and T-Mobile US, Inc. (TMUS), as well as one micro-cap stock, Tucows Inc. ( TCX). Zacks microcap research is unique because our research content on these small and under-the-radar companies is the only one of its kind in the country.

These research reports were handpicked from the approximately 70 reports published by our team of analysts today.

You can You can find all current research reports here >>>

Shares of Apple have gained +18.8% year to date, while the Zacks Computer – Microcomputer industry has seen a gain of +19.5%. The company benefits from strong growth in service revenue. The company now has more than one billion paid subscribers across its portfolio of services, more than double the number four years ago. Apple TV+ and Apple Arcade’s growing content portfolio helped drive subscriber growth.

Apple expects its September quarter (fiscal fourth quarter of 2024) revenue to grow year-over-year at the same rate as the June quarter. Unfavorable exchange rates are expected to impact revenue. For the services segment, Apple expects a double-digit growth rate similar to the first three quarters of fiscal 2024.

The launch of Apple Intelligence, an advanced personal intelligence system seamlessly integrated into iOS 18, iPadOS 18 and macOS Sequoia, will help Apple shares continue to rise. However, weak iPhone sales, particularly in China, are a cause for concern.

(You can Read the full Apple research report here >>>)

Teslas The stocks have outperformed the Zacks Automotive – Domestic industry year to date (+4.9% vs. +1.8%). As competition intensifies in the electric vehicle space, the company’s focus on autonomous driving and artificial intelligence (AI) is expected to be game-changing. Aiming to bring affordable vehicles to the market, transforming into an AI company is betting on its robotaxi company.

The expected launch of Tesla’s supervised full self-driving (FSD) software in China and Europe by the end of the year will improve the outlook. Additionally, TSLA’s energy generation and storage business is thriving. While short-term challenges remain, the long-term prospects appear promising, driven by major commitment to driverless software and AI.

Recently, Tesla has suffered from declining automotive margins due to aggressive price cuts and discounting. The company expects the vehicle volume growth rate for 2024 to be significantly lower than that of 2023 as the electric vehicle (EV) market cools.

(You can Read the full Tesla research report here >>>)

Shares of T Mobile USA have outperformed the Zacks Wireless National industry year to date (+30.0% vs. +29.9%). The company is benefiting from industry-leading postpaid customer growth with a record low churn rate. In the second quarter, the company added 1.3 million net postpaid customers, while net postpaid account additions reached 301,000. Both metrics were the best in the industry.

TMUS’ 2.5GHz 5G spectrum offers super-fast speeds and comprehensive coverage with signals that penetrate walls and trees. This strengthens its competitive advantage over the companies deploying 5G networks driven by mmWave spectrum.

However, given the stock’s premium valuation, we believe investors should remain cautious as macroeconomic factors, market saturation or economic downturns can have a significant impact on overvalued stocks like TMUS. The high debt burden is a cause for concern. Strong competition is putting a strain on profitability. We repeat our neutral recommendation.

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

Tucows’ Shares have gained +8.3% over the past year, while the Zacks Internet Content industry has gained +14.7%. This microcap company with a market cap of $230.64 million continues to see strong subscriber growth, with a 25% year-over-year increase to 48,200 in Q2 2024. Revenue increased 17% to $14.6 million dollars, supported by infrastructure development.

Ting’s gross margin increased 39% year over year, driven by cost management and efficiency improvements. The company completed a $63 million asset-backed securitization that helped finance its fiber expansion while reducing capital risk.

However, rising debts and liquidity concerns due to declining liquid assets increase risks. Depreciation costs and customer acquisition challenges add pressure as Ting competes with larger ISPs. Additionally, Tucows Domains saw a 3% decline in transactions, and continued pressure in this resilient business could impact its overall performance. Slower fiber optic network expansion and increasing competition can hinder growth.

(You can Read the full research report on Tucows here >>>)

Other notable reports we’re featuring today include Novartis AG (NVS), The TJX Companies, Inc. (TJX), and The Bank of New York Mellon Corp. (BK).

Mark Vickery
Senior Editor

Note: Sheraz Mian leads Zacks’ Equity Research department and is a respected total earnings expert. He is frequently quoted in print and electronic media and edits the weekly newspaper Earnings trends And Results preview Reports. If you would like to receive an email notification every time Sheraz publishes a new article, please contact us Click here>>>

The story continues

Today’s required reading

Robust portfolio, strong services benefit Apple (AAPL)

Big bets on AV and AI to drive Tesla’s (TSLA) prospects

T-Mobile (TMUS) is betting on postpaid customer growth and an AI focus

Selected reports

Kisqali and Pluvicto are driving Novartis (NVS) forward in the competition
According to the Zacks analyst, drugs such as Entresto, Kesimpta, Pluvicto, Kisqali and Leqvio continue to drive Novartis’ growth. However, generic competition and pipeline setbacks remain concerns.

Expansion efforts fuel TJX companies (TJX), high costs are a nuisance
According to the Zacks analyst, TJX Companies is on the right track with its store expansion efforts to improve performance. However, rising selling, general and administrative costs pose a challenge.

Strategic acquisitions help Vulcan (VMC) keep high costs
According to the Zacks analyst, Vulcan is benefiting from strong demand for public infrastructure and increased contract flow. In addition, strategic acquisitions improve growth prospects. However, increased costs are a concern.

Markel (MKL) is betting on acquisitions in the face of rising costs
According to the Zacks analyst, strategic acquisitions have helped the company expand its offering of reinsurance products and increase its surety capabilities. However, the high costs remain a problem.

Systematic investment assistance AES, poor financial indicators Woe
According to the Zacks analyst, AES is making systematic investments to expand its renewable energy generation portfolio. Nevertheless, the poor financial indicators indicate weak solvency.

Solid Group Demand Aid Host Hotels (HST), Leisure Demand Ail
According to the Zacks analyst, the group’s increasing business demand and Host Hotels’ (HST) capital recycling efforts bode well for growth. However, temporary demand for domestic leisure activities is weakening.

Strength in HSA Helps HealthEquity (HQY) Amid Macro Concerns
According to the Zacks analyst, HeathEquity’s unique investment platform and strength of HSAs continue to drive business. However, macroeconomic and data security issues remain.

New upgrades

Higher interest rates, assets under management and expansion efforts support BNY Mellon (BK)
According to the Zacks analyst, BNY Mellon’s strategic acquisitions to expand its overseas presence, high interest rates and robust AUM balances will benefit the company’s finances. A solid balance sheet ensures sustainable capital distributions.

Strong demand, price increases help Packaging Corporation (PKG)
According to the Zacks analyst, Packaging Corp will benefit from robust packaging demand supported by e-commerce and increasing demand for food, beverage and drug packaging, as well as pricing measures.

Charles River Associates (CRAI) benefits from diversification
According to the Zacks analyst, Charles River has a diversified business with service offerings across various disciplines and geographic regions. This contributes significantly to the return on sales.

New downgrades

High crude oil prices are hurting Valero’s (VLO) refining margins.
According to the Zacks analyst, high crude oil prices could increase Valero’s input costs and negatively impact refining margins and overall profitability.

The Estee Lauder Companies (EL) are suffering from hurdles in the Asia-Pacific region
According to the Zacks analyst, the slowdown in Asia Pacific is a concern for The Estee Lauder Companies as consumer sentiment is weaker, shopping basket sizes are smaller and consumer behavior is changing.

Weakening consumer spending hurts Micron’s (MU) sales.
According to the Zacks analyst, slowing consumer spending on PCs and smartphones is likely to negatively impact demand for Micron’s memory chips in the near term.

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Novartis AG (NVS): Free stock analysis report

Apple Inc. (AAPL): Free Stock Analysis Report

The Bank of New York Mellon Corporation (BK): Free Stock Analysis Report

The TJX Companies, Inc. (TJX): Free stock analysis report

Tucows Inc. (TCX): Free Stock Analysis Report

Tesla, Inc. (TSLA): Free Stock Analysis Report

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

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