Monday, July 31, 2023

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 Tesla, Inc. (TSLA), Comcast Corporation (CMCSA) and Intuit Inc. (INTU). 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 >>>

Tesla shares have outperformed the Zacks Automotive - Domestic industry over the past six months (+46.6% vs. +32.1%). In the last reported quarter, the electric vehicle (EV) giant witnessed record production, deliveries and revenues. We expect deliveries to see an annualized growth of around 36% in 2023.

Production ramp-up at gigafactory 4 (in Berlin) and 5 (in Austin) and introduction of new models, including Semi and Cybertruck, are set to support long-term deliveries growth. The Zacks analyst anticipates automotive revenues to rise more than 18% this year. Additionally, Tesla’s energy generation and storage revenues outlook is promising.

Falling debt levels and solid potential of its charging business are other positives. While shrinking margins remain a near-term concern, we expect Tesla to deliver outsized returns in the long run on the back of output ramp-up and introduction of new models.

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

Shares of Comcast have outperformed the Zacks Cable Television industry over the past year (+24.9% vs. +4.5%). The company is benefiting from a growing wireless subscriber base as witnessed in the second quarter of 2023. Comcast’s plan to transition to DOCSIS 4.0 is noteworthy. The technology will help it in expanding much faster and at a lower cost compared to competitors.

Recovery in park and movie business bodes well for Comcast’s profitability. Its streaming service Peacock is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.

However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Moreover, broadband prospects are suffering from increased competition from fixed wireless as well as fiber. Additionally, a leveraged balance sheet is a major concern.

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

Shares of Intuit have gained +15.4% over the past year against the Zacks Computer - Software industry’s gain of +24.7%. The company is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues. The TurboTax Live offering is also driving growth in the Consumer tax business.

Solid momentum in the company’s lending product, QuickBooks Capital, remains a positive. Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run.

Nonetheless, macroeconomic and geopolitical headwinds might significantly hurt small businesses operations, thereby posing risks for Intuit’s top-line growth. Additionally, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting bottom-line results in the near term.

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

Other noteworthy reports we are featuring today include Intel Corporation (INTC), Carrier Global Corporation (CARR) and Old Dominion Freight Line, Inc. (ODFL).

Director of Research

Sheraz Mian

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>>>