Trefis Top 5 – June 8 Insights (VZ, WMT, SLB, F, ARO)
In today’s action, we look at Verizon’s (NYSE:VZ) move to unbundle its FiOS broadband and TV offerings to cater to those wanting higher broadband speeds and more flexibility in their plans. Wal-Mart’s (NYSE:WMT) is offering home delivery services in select markets, and we ponder whether this could help drive sales. We launch coverage recently with a $105 price estimate for Schlumberger N.V (NYSE:SLB), one of the world’s largest providers of upstream oil & gas exploration and production services. Ford (NYSE:F) truck sales are getting a lift from its EcoBoost engines and its new Explorer underscoring our positive view on its outlook. And finally, we look at what fundamental and defensive drivers that support our very optimistic stance on Aeropostale (NYSE:ARO) despite the fact that many apparel retailers have been getting hammered in the market recently.
Verizon is Unbundling TV in FiOS Packages to Capture Broadband Demand
Verizon (NYSE:VZ) recently announced new FiOS package bundles that allow customers greater flexibility and cost savings while choosing a plan by adding flexibility to its national triple play packages. [1] The goal to give customers greater flexibility – for instance those who want Internet and voice services but don’t need cable TV. So what does this indicate for Verizon and competitors like AT&T (NYSE:T), Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC)? Below we take a quick look.
- With Mid-Band 5G Gaining Momentum, What To Expect From Verizon’s Q1 Results?
- Up 8% Year To Date As 5G Gains Traction, What’s Next For Verizon Stock?
- Up 25% Over The Last Three Months, Will Verizon See Further Gains Following Q4 Results?
- Down 50% From Covid Highs, Will Verizon Stock Recover Post Q3 Results?
- Will Verizon Stock Recover To Its Pre-Inflation Shock Highs?
- Verizon Stock Has Over 60% Upside If It Recovers To Its Pre-Inflation Shock Highs
Will Home Delivery be Next Growth Driver to Wal-Mart?
Wal-Mart’s (NYSE:WMT) latest move to venture into customers’ home could play a big role in bringing new growth opportunities to the world’s largest retailer. It launched an online grocery delivery service “Walmart To Go” that allows customers to purchase food, health-and-beauty products, medicine and other basic household goods online and have them delivered to their doorsteps for fees starting at $5. However, a minimum order of $49 is required. Wal-Mart competes with other big-name retailers like Target (NYSE:TGT), Costco (NASDAQ:COST), Amazon (NASDAQ:AMZN) and Best Buy (NYSE:BBY).
New Coverage: $105 Trefis Price Estimate for Schlumberger N.V.
Schlumberger N.V (NYSE:SLB) is one of the world’s largest providers of upstream oil & gas exploration and production services. Its oilfield services division has a presence in over 80 countries that are classified into 4 ‘geo-divisions’. Schlumberger’s oilfield revenues are evenly divided across these divisions with none of them accounting for more than 27% of the overall revenues. Competitors include Halliburton Company (NYSE:HAL), Baker Hughes (NYSE:BHI) and, in the offshore and deepwater sector, Transocean (NYSE: RIG) is another player with significant presence.
EcoBoost Engine & Explorer Boost Ford Truck Sales
Ford (NYSE:F) increased U.S. sales of trucks and utilities by 11% year-on-year in April 2011 as the EcoBoost engine helped drive sales in an economy beset by increasing oil prices. [2] We believe that the continued success of Ford trucks and crossovers will help Ford expand its North American market share. Ford mainly competes with auto manufacturers like BMW (GR:BMW), GM (NYSE:GM), Daimler (ETR:DAI), Audi (NSU:GR), Honda (NYSE:HMC), and Toyota (NYSE:TM).
Notes:
- Verizon’s Bundle Builder shows the power of broadband, June 6 2011, GigaOm [↩]
- Ford U.S. April Sales Up [↩]