Top Stock Reports for Costco, Coca-Cola & T-Mobile US

Friday, October 25, 2024The 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 Costco Wholesale Corp. (COST), The Coca-Cola Co. (KO) and T-Mobile US, Inc. (TMUS), as well as a micro-cap stock Preformed Line Products Co. (PLPC). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.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 >>>Costco’s shares have outperformed the Zacks Retail - Discount Stores industry over the year-to-date period (+36.3% vs. +19.9%). The company being a consumer defensive stock, has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth. These factors have been helping it register decent sales and earnings numbers.The Zacks analyst expect the company to register a 10% adjusted earnings per share improvement in fiscal 2025 on 7% revenue growth. This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates.A favorable product mix, steady store traffic, pricing power, and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.(You can read the full research report on Costco here >>>)Shares of Coca-Cola have outperformed the Zacks Beverages - Soft drinks industry over the year-to-date period (+13.4% vs. +10.7%). The company experiences positive business trends, as evidenced by its strong track record of beating expectations. In third-quarter 2024, the company exceeded sales and earnings estimates for the seventh consecutive quarter, with earnings showing year-over-year improvement.Results benefited from continued business momentum, aided by higher pricing across markets facing intense inflation and favorable mix. KO is well-poised to benefit from its marketing and innovation strategy, and growing digital investments.Coca-Cola has provided an optimistic view for 2024. It expects organic revenue growth of 10% for 2024, with comparable EPS to grow 5-6%. However, Coca-Cola faces inflationary cost pressures due to higher commodity and material costs, as well as increased marketing investments.(You can read the full research report on Coca-Cola here >>>)T-Mobile US’ shares have outperformed the Zacks Wireless National industry over the year-to-date period (+53.6% vs. +36.0%). The company reported impressive third-quarter 2024 results, with the bottom and top lines surpassing the Zacks Consensus Estimate. Solid demand for postpaid services drove the top line.In the third quarter, the company added 1.6 million postpaid net customers while postpaid net account additions were 315,000, both metrics being the best in the industry. Solid growth in free cash flow accentuates efficient capital management and implies that the company is well-positioned to invest in growth initiatives and pay debt and dividends.However, the highly competitive and saturated nature of the U.S. wireless market could adversely affect its financial results. Its strategy of introducing several promotional activities to outperform competition strains margin. Declining prepaid ARPU is a concern. We are reiterating our Neutral recommendation.(You can read the full research report on T-Mobile US here >>>)Shares of Preformed Line Products have underperformed the Zacks Electronics - Miscellaneous Products industry over the year-to-date period (-4.2% vs. -4.0%). This microcap company with market capitalization of $615.14 million is facing near-term risks, including declining sales driven by weakness in the communications market, margin compression, foreign exchange challenges and reduced cash flow. The slowdown in customer deployments, delays in stimulus funding and ongoing inventory management challenges weigh on the company’s outlook.Nevertheless, Preformed Line Products offers a strong investment case due to its robust market position, diverse product portfolio and solid financial health. The company’s extensive range of products for energy, telecommunications and other industries, backed by strategic global manufacturing facilities, ensures a competitive edge.PLPC’s focus on innovation and manufacturing efficiency positions it to benefit from anticipated infrastructure investments, particularly in the energy and communications sectors.(You can read the full research report on Preformed Line Products here >>>)Other noteworthy reports we are featuring today include Amgen Inc. (AMGN), HSBC Holdings plc (HSBC) and Marriott International, Inc. (MAR).Mark VickerySenior EditorNote: 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 ReadDecent Comparable Sales Run to Fuel Costco's (COST) Top LineCoca-Cola's (KO) Digital Investments to Aid the Top LineT-Mobile (TMUS) Rides on Solid Postpaid Customer Growth Featured ReportsAmgen (AMGN) Well-Poised for Growth on a Solid PipelineThe Zacks analyst believes that Amgen has key pipeline assets in obesity and inflammation, indications that have a large market opportunity. Several data readouts are expected in the next 12 monthsRestructuring Efforts, Buyouts to Aid HSBC Amid Rising CostsPer the Zacks analyst, HSBC's restructuring efforts to boost efficiency, strategic buyouts alongside a solid capital position will aid its financials. Yet, high costs and subdued revenues are woes.Marriott (MAR) Banks on Expansion Efforts, China Woes AilPer the Zacks analyst, Marriott is likely to benefit from solid leisure demand, a loyalty program and unit-expansion efforts. However, soft demand in China is a concern.TE Connectivity (TEL) Rides on Strong Transportation GrowthPer the Zacks analyst, TE Connectivity is benefiting from strong growth transportation segment. The growing proliferation of EVs and strong content trends in electronification are driving sales.Booz Allen (BAH) Gains From Recurring Contracts, Costs HighPer the Zacks analyst, Booz Allen's multi-year contracts provide a steady revenue stream and reduce its exposure to market volatility. Rising expenses is concerning.Strength in Aerospace Unit Buoys Plexus (PLXS) PerformancePer the Zacks analyst, continued strength in the Aerospace/Defense sectors is driving Plexus' performance. Weakness in the industrial market sector and the EMEA region are concerning. Myriad Genetics (MYGN) Banks on MyRisk Test, Cost Woes StayPer the Zacks analyst, expanded guidelines and acceleration in upcoming EMR integrations should sustain the growth of Myriad Genetics' MyRisk hereditary cancer test. Yet, macro woes escalate costs. New UpgradesHigh Volume, Focus on Growth Aid International Flavors (IFF)Per the Zacks Analyst, International Flavors will gain from the improved volumes across all its segments in recent quarters. The company's focus on growth will also boost its margins.Growth Projects, Higher Gold Prices Aid Kinross Gold (KGC)Per the Zacks analyst, Kinross will benefit from the progress of its key development projects, which will boost production and cash flows. Higher gold prices will also drive its margins.SWP Demand, Buyouts, Robust AUM Aid SEI Investments (SEIC)Per the Zacks analyst, rising demand for the SWP, solid assets under management balance, SEI Investments' partnership interest in LSV, strategic acquisitions and global presence will support growth.New DowngradesHeavy Dependence on Large Customers to Hurt Liberty (LBRT)The Zacks analyst believes that with top four customers contributing some 40% to Liberty Energy's revenues, it is susceptible to financial strain from the potential loss of one of these key clients.Supply Chain Issues, Rising Fuel Price to Hurt Hexcel (HXL)Per the Zacks analyst, supply chain challenges plaguing the aerospace sector have been hurting Hexcel's performance. Moreover, rising fuel prices may hurt demand for the company's productsLow Spending, E-Commerce Shift to Hurt SITE Centers (SITC)Per the Zacks analyst, limited customers' willingness to spend amid macroeconomic uncertainties, rising e-commerce adoption and potential tenant bankruptcies offer a bleak prospect for SITE Centers.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis Report Marriott International, Inc. (MAR): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report T-Mobile US, Inc. (TMUS): Free Stock Analysis Report HSBC Holdings plc (HSBC): Free Stock Analysis Report Preformed Line Products Company (PLPC): Get Free ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks