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


Person Holding White and Blue BoxImage Source: PexelsThe 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.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.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.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.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.Other noteworthy reports we are featuring today include Amgen Inc. (AMGN), HSBC Holdings plc (HSBC), and Marriott International, Inc. (MAR).More By This Author:Markets Mixed Again; DECK, SKX Beat After The BellMarkets Up From Session Lows, Still Close In RedNetflix, Intuitive Beat Q3 Earnings Easily

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