Top Analyst Reports for Comcast, CME & Charter Communications

Friday, May 6, 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 Comcast Corp. (CMCSA), CME Group Inc. (CME), and Charter Communications, Inc. (CHTR). 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 >>>

Comcast shares have declined -29.8% over the past year against the Zacks Cable Television industry’s decline of -29.5%. The Zacks analyst believes that Comcast persistently suffers from video-subscriber attrition due to cord cutting. Moreover, a leveraged balance sheet is a major concern.

However, Comcast is also benefiting from strength in broadband subscriber base and strong momentum in the wireless business. Its strategy to provide high-speed Internet at an affordable price plays a pivotal role in providing connectivity, improving customer wins and experience.

Media consumption and the work-from-home and online-learning waves bode well for Comcast’s Internet business due to the recent pandemic. The company’s streaming service Peacock gained significant traction within a short span and is a key catalyst in driving broadband sales.

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

Shares of CME Group have outperformed the Zacks Securities and Exchanges industry over the past year (+6.5% vs. -12.6%). The Zacks analyst believes that CME Group’s strong market position driven by varied derivative product lines bodes well. Efforts to expand and cross sell through strategic alliances, acquisitions, new product initiatives and a stable global presence bode well.

Product innovation and growing proportion of volume from customers outside the U.S. have been aiding results. The company intends to focus more on over-the-counter clearing services
 
However, escalating expenses due to higher technology cost are likely to put pressure on the company's margin expansion. Diversified product portfolio is significantly exposed to volatile interest rate, firm government regulations and limited credit availability in unstable capital and credit market. Also, stiff competition poses financial risk for the company.

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

Charter Communications shares have declined -33.6% over the past year as against the Zacks Cable Television industry’s decline of -29.5%. The company persistently suffers video-subscriber attrition, primarily due to cord-cutting and stiff competition from streamers like Netflix and Disney+. Internet user base expansion has started to slow down with lifting of COVID curbs. This along with a leveraged balance sheet are major concerns.

However, benefit from growth in residential, mobile and commercial revenues as reflected by first-quarter 2022 results. The company continues to witness a spike in Internet usage due to the pandemic-induced work-from-home and online-learning wave.

Charter’s expanding mobile-subscriber base has been a key catalyst. The momentum is likely to continue in the near term. Charter’s broadband service has gained traction among small and medium businesses.

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

Other noteworthy reports we are featuring today include Merck & Co., Inc. (MRK), Airbnb, Inc. (ABNB), and Edwards Lifesciences Corp. (EW).

Mark Vickery
Senior Editor
 
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

Broadband Subscriber Gain Drives Comcast's (CMCSA) Prospects

Improving Clearing and Transaction Fees Aid CME Group (CME)

Mobile & Internet Subscriber Gain Benefits Charter (CHTR)

Featured Reports

Keytruda to Remain Merck's (MRK) Key op Line Driver in 2022
With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver, per the Zacks analyst.

Edwards' (EW) Critical Care Business Grows amid Forex Woes
The Zacks analyst is impressed with Edwards' Critical Care business growth in the first quarter led by strong sales of the HemoSphere monitoring platform. Yet, foreign exchange woes remain a concern.

Strategic Initiatives Aid Aon (AON), High Debt Level Hurts
Per the Zacks analyst, several acquisitions and collaborations are helping Aon enhance its capabilities, growing its bottom line. Yet, rising debt impacting financial flexibility remains a concern.

Investments & Expanding Customer Base Aid Xcel Energy (XEL)
Per the Zacks analyst, Xcel's investment of $26 billion in 2022-2026 period to fortify infrastructur, while expanding electric and natural gas customer base will boost demand and profitability.

Improved Air-Travel Demand Aids Delta (DAL) Amid Cost Woes
Improved air-travel demand, particularly on the domestic front, is driving Delta's top line. However, the Zacks analyst is concerned about the bottom line being hurt by escalating fuel costs.

Diversification Efforts Aid Ally Financial (ALLY), Costs Ail
Per the Zacks analyst, Ally Financial's efforts to diversify revenue base and the rise in consumer loans will aid profits. Elevated costs due to inorganic growth efforts might hurt the bottom line.

Long-Term Strategic Plan Aid Leggett (LEG), Volumes Soft
Per the Zacks analyst, Leggett benefits from long-term strategic plan, which includes divesture, improving margins and top-line growth of 6-9% annually. Yet, lower volume and inflation are concerns.

New Upgrades

Airbnb (ABNB) Banks on Strong Nights & Experiences Bookings
Per the Zacks analyst, strengthening gross nights booked in non-urban areas, and recovery in both long-distance and cross-border travel are benefiting Airbnb's Nights & Experience bookings.

Imperial (IMO) to Gain from Majority Holding by ExxonMobil
The Zacks analyst believes that Imperial Oil's financial backing by majority owner ExxonMobil adds to the company's financial stability and helps it to access cheap capital.

Monolithic (MPWR) Rides on Swift 5G Infrastructure Upgrade
Per the Zacks analyst, Monolithic Power is likely to gain from the fast pace of 5G deployment due to a solid portfolio of legacy routers, wireless applications and 5G infrastructure-related products.

New Downgrades

Soft Industrial Segment & Competition to Hurt Woodward (WWD)
Per the Zacks analyst, stiff competition and weak Industrial unit as a result of the global supply chain disruptions strain Woodward's margins. Volatility in regional markets is another major concern.

Low Mainland China Sales Hurt The Estee Lauder Companies (EL)
Per the Zacks analyst, The Estee Lauder Companies is hurt by pandemic-led restrictions in China. Its organic sales fell in mid-single-digit across Mainland China during third-quarter fiscal 2022.

Rising Commodity Costs Hurts Stanley Black & Decker (SWK)
Per the Zacks analyst, Stanley Black & Decker' revenue growth and operational efficiencies are being dampened by a steep rise in commodity costs, which is hurting the company's bottom line.

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CME Group Inc. (CME) : Free Stock Analysis Report
 
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
 
Comcast Corporation (CMCSA) : Free Stock Analysis Report
 
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
 
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
 
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
 
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