The Zacks Analyst Blog Highlights: Starbucks, AT&T, Telefonica, Vodafone Group and Verizon Communications
CHICAGO, June 25, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Starbucks Corporation (Nasdaq:SBUX-Free Report), AT&T, Inc. (NYSE:T-Free Report), Telefonica (NYSE:TEF-Free Report), Vodafone Group Plc (Nasdaq:VOD-Free Report) and Verizon Communications Inc. (NYSE:VZ-Free Report).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
Starbucks to Raise Coffee Prices
Reuters recently reported thatStarbucks Corporation (Nasdaq:SBUX-Free Report) has decided to raise the prices of some of its coffee beverages in several of its cafes in the U.S., starting this week.
The average coffee price is expected to increase by about 1% nationally. Reuters states that this would be the first price increase in some of the regions in close to two years. However, prices are not expected to go up in some markets like California and Florida.
The prices of some beverages like Grande or Venti brewed coffee, as well as Frappuccino and Refreshers are expected to remain the same. Reuters reported that the price of some of its coffee beverages, for example, a tall brewed coffee, will increase by as much as 10 cents.
It is ironical that the coffee prices are being increased at a time when the company's profits are improving due to lower coffee costs. In the last reported quarter, the company said that its operating margins have improved due to strong sales leverage and lower coffee costs.
Last week, Starbucks announced that starting this week it will post calorie counts for its beverages and food items on its menus across all its stores in the U.S. This initiative will provide further nutritional transparency to Starbucks' customers and will allow this Zacks Rank # 3 (Hold) company to reap benefits from evolving consumer needs for healthy and nutritious products.
AT&T to Connect with Europe
AT&T, Inc. (NYSE:T-Free Report) is reportedly seeking opportunities in the European continent. According to recent Bloomberg reports, the company is in talks to buy around 29.9% in Telefonica (NYSE:TEF-Free Report). AT&T is also looking to own assets in Vodafone Group Plc (Nasdaq:VOD-Free Report) as well as digital communications company – EE, one of the largest operators in the UK and a joint venture between Deutsche Telekom AG and France Telecom S.A.
AT&T is eyeing opportunities to improve its growth profile through a number of strategic initiatives. Acquisition being one of them, has played a major role in shaping AT&T's growth trajectory. In the domestic market, the company entered into an agreement with Verizon Wireless of Verizon Communications Inc. (NYSE:VZ-Free Report) to acquire spectrum licenses. This includes 39 lower 700 megahertz (MHz) licenses, covering 42 million people in 18 states including major territories such as Chicago, Los Angeles and Miami.
AT&T also plans to buy the remaining portion of Alltel's wireless operations including spectrum licenses, retail stores and network assets from Atlantic Tele-Networks Inc. AT&T aims to enhance its high-speed wireless network to generate more profits from the growing demand for mobile Internet services for smartphones, tablets and other devices.
AT&T is experiencing strong momentum in its wireless businesses. Continued strength in smartphone and branded computing device sales are fueling growth in the wireless sector.
The company boasts the best Internet speeds in the industry as it is the only U.S. carrier that provides 4G networks through both Long Term Evolution (LTE) and High-Speed Packet Access Plus (HSPA+) technologies.
However, risk factors such as a saturated wireless market, persistent losses in access lines, labor union issues and aggressive pricing plans of direct competitors are likely to weigh on the company's revenues and margins in the near to medium term.
AT&T has a Zacks Rank #3 (Hold) rating.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on SBUX - FREE
Get the full Report on T - FREE
Get the full Report on TEF - FREE
Get the full Report on VOD - FREE
Get the full Report on VZ - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
SOURCE Zacks Investment Research, Inc.
Share this article