Top Stock Reports for Exxon Mobil, T-Mobile US & Intuitive Surgical

Monday, October 31, 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 Exxon Mobil Corporation (XOM), T-Mobile US, Inc. (TMUS) and Intuitive Surgical, Inc. (ISRG). 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 Exxon Mobil have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+69.3% vs. +41.6%). The company’s bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play.

Exxon Mobil has made more than 30 discoveries in offshore Guyana since 2015. ExxonMobil also has a strong presence in the prolific Permian Basin, where it expects to boost production volumes by 25% in 2022. The energy major has significantly lower debt exposure than composite players belonging to the industry. XOM recently reported strong third-quarter earnings owing to higher prices and production, and strong refining margins.

However, the company has been constantly bearing the brunt of increasing expenses, adversely affecting the income. Also, the aggressive capital budget remains a headwind for the company. As such, the stock warrants a cautious stance.

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

Shares of T-Mobile have outperformed the Zacks Wireless National industry over the past year (+28.2% vs. -13.8%). The company reported relatively modest third-quarter 2022 results with industry-leading growth in postpaid and broadband customers driven by superior 5G network and focus on customers. It is on track to complete the Sprint customer network decommissioning by the year-end.

T-Mobile has augmented its 5G footprint by introducing 5G Home Internet services in several states. With healthy demand trends, T-Mobile has raised the guidance for 2022 across the board.

However, it operates in a fiercely competitive and almost saturated U.S. telecom market, which lowers its growth potential to some extent. Several promotional activities to lure additional customers are further eroding its profitability. Furthermore, it is engaging in leasing strategy to gain customers, thereby exposing it to credit risk. Debt obligation woes also persist.

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

Intuitive Surgical’s shares have declined -30.7% over the past year against the Zacks Medical - Instruments industry’s decline of -33.5%. The company is facing stiff competition in the global MedTech space and rising costs remain a concern. Nevertheless, its da Vinci procedure volume demonstrated strong recovery in the first nine months of 2022, a trend likely to continue in upcoming quarter.

Intuitive Surgical’s revenue growth in the quarter under review reflected rise in revenues from procedures, system placements and services across all markets. Per management, strong U.S. dollar, lingering supply chain issues and inflation hurt operating margin.

Despite this challenging environment, Intuitive Surgical witnessed healthy customer demand for its products in the quarter under review. A stable liquidity position is an added plus.

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

Other noteworthy reports we are featuring today include Texas Instruments Incorporated (TXN), Regeneron Pharmaceuticals, Inc. (REGN), and Infosys Limited (INFY).

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

ExxonMobil (XOM) Gains From Discoveries at Stabroek Block

T-Mobile (TMUS) Rides on Solid Customer Growth, 5G Network

Intuitive Surgical's (ISRG) da Vinci System Helps Offset Risks

Featured Reports

Texas Instruments (TXN) Banks on Solid Data Center Demand
Per the Zacks analyst, rising data center demand is accelerating Texas Instruments' revenues in the enterprise systems market.

Eylea, Dupixent Fuel Regeneron (REGN) Amid Competition
Per the Zacks analyst, solid demand for Eylea and Dupixent maintain momentum for Regeneron amid competition. However, REGEN-COV sales have plunged due to lack of efficacy against the Omicron variant.

Digital Transformation, AI Proliferation Aid Infosys (INFY)
Per the Zacks analyst, Infosys is benefiting from large deal wins and higher investments by clients in digital transformation, artificial intelligence and automation.

Market Share Gains to Aid Keurig Dr Pepper's (KDP) Sales
Per the Zacks analyst, Keurig Dr Pepper is witnessing a recovery in the coffee business as well as strong market share gains across all categories and brands. This led to sales growth of 11.4% in Q3.

Investments Aid American Electric (AEP), Weak Solvency Woes
Per the Zacks analyst, American Electric hefty investments offer a stable earnings base and tend to boost its long-term growth potential. However, its weak solvency position remains a concern

Construction Materials Segment to Drive Carlisle (CSL)
Per the Zacks analyst, solid traction of Carlisle's Construction Materials segment, led by reroofing market in the United States and new construction activity will drive the company's growth.

Vail Resorts (MTN) Banks on Strategic Investments, Traffic Dismal
Per the Zacks analyst, Vail Resorts is likely to benefit from investments in project expansion, lift capacity and technology program. However, decline in traffic from pre-pandemic levels is a concern.

New Upgrades

Booz Allen (BAH) Benefits From Differentiated Business Models
Per the Zacks analyst, Booz Allen Hamilton has developed its solutions business in a way that allows it to create differentiated business models and sales channels, and increase client acquisition.

Plexus (PLXS) Gains from Demand Environment, Program Ramps
Per the Zacks analyst, Plexus will continue to benefit from robust demand environment and new program ramps. The company's expansion in several secular growth markets and massive backlog bode well.

AMERISAFE (AMSF) Rides on Premium Growth & Policy Retention
Per the Zacks analyst, AMERISAFE's intensified focus on hazardous industries will keep fetching higher premiums. Also, its solid policy retention rates will provide a strong platform for growth.

New Downgrades

SkyWest (SKYW) Grapples With Rising Operating Expenses
The Zacks Analyst is worried about the fact that the rise in salaries, wages, and benefits is increasing SkyWest's operating expenses. This is likely to weigh on SkyWest's bottom line.

Lower Volumes are a Concern for Tyson Foods' (TSN) Top Line
Per the Zacks analyst, soft volume is a concern for Tyson Foods. Its fiscal third-quarter volumes fell 1.9% due to supply constraints and a tough macroeconomic environment affecting consumer demand.

Expenses, Tough Operating Backdrop Hurt SVB Financial (SIVB)
Per the Zacks analyst, elevated operating expenses are likely to hurt SVB Financial's bottom line. Geopolitical and recessionary fears are other headwinds, which will likely weigh on its financials.

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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
 
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
 
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
 
Infosys Limited (INFY) : Free Stock Analysis Report
 
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
 
TMobile US, Inc. (TMUS) : Free Stock Analysis Report
 
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