Friday, June 10, 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 Exxon Mobil Corporation (XOM), The Coca-Cola Company (KO), and Thermo Fisher Scientific Inc. (TMO). 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 >>>
Exxon Mobil
shares have outperformed the Zacks Oil and Gas – Integrated – International industry over the past year (+71.4% vs. +55.9%). The company’s bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play. The company made three oil discoveries in the Stabroek Block, which will increase its recoverable resources estimates to 11 billion oil-equivalent barrels. It also has a strong presence in the prolific Permian Basin, where it continues to lower its fracking & drilling costs.
To capitalize on mounting demand for clean energy, ExxonMobil is making efforts to create more efficient fuels while reducing emissions. Notably, it has significantly lower debt exposure than other integrated majors. ExxonMobil has increased its stock repurchase program from $10 billion to $30 billion. The energy giant has planned to execute the repurchases through next year.
(You can
read the full research report Exxom Mobil here >>>
)
Coca-Cola
shares have outperformed the Beverages – Soft drinks industry over the past year (+14.0% vs. +8.2%). The company benefited from the strategic transformation and ongoing recovery around the world. Strength across the majority of the markets, investments in the marketplace, recovery in certain markets as well as the cycling of last year’s pandemic-led impacts aided volumes. The company retained its upbeat 2022 view. It is poised to gain from innovations and accelerating digital investments.
However, pressures from higher supply chain costs, including transportation and input costs remain. Higher marketing spending are also concerning. Also, the unfavorable currency is expected to hurt the top and bottom lines in the second quarter and 2022.
(You can
read the full research report Coca-Cola here >>>
)
Thermo Fisher
shares have outperformed the Medical – Instruments industry over the past year (+16.4% vs. -21.1%). The company’s robust year-over-year revenue growth in the Analytical Instruments and the Laboratory Products and Biopharma Services segments appears promising. The company’s strategic acquisitions of PPD, Inc. and PeproTech raise investors’ confidence. Thermo Fisher’s accelerated investments to expand bioproduction capacity also buoy optimism. The upbeat guidance for 2022 is indicative that this growth momentum will continue.
However, the year-over-year decline in revenues in the Specialty Diagnostics segment is disappointing. The contraction of both margins does not bode well either.
(You can
read the full research report Thermo Fisher here >>>
)
Other noteworthy reports we are featuring today include PepsiCo, Inc. (PEP), The Progressive Corporation (PGR), and Dominion Energy, Inc. (D).
Sheraz Mian
Director of Research
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
ExxonMobil (XOM) Gains From Discoveries at Stabroek Block
Coca-Cola’s (KO) Digital Investments to Aid the Top Line
Thermo Fisher (TMO) Grows Internationally Amid Forex Woes
Featured Reports
PepsiCo’s (PEP) Business Investments to Bolster Performance
Per the Zacks analyst, PepsiCo gains from investments in brands, go-to-market systems, supply chains, and manufacturing and digital capabilities to build competitive advantages. This aided Q1 results.
Progressive’s (PGR) Solid Policies in Force Aid, Cat Loss Ail
Per the Zacks analyst, Progressive is set to grow on, solid policies in force, competitive rates and leadership position. However, cat loss exposure inducing underwriting volatility ails.
Investment on Infrastructure & Clean Assets Aid Dominion (D)
Per the Zacks analyst, Dominion’s investment of $37 billion through 2026 to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.
Permian Basin Focus, Cost Management Aid Occidental (OXY)
Per the Zacks analyst Occidental’s acquisition of Anadarko expanded its operation in resource rich Permian Basin and efficient cost management will drive its performance over the long run.
Elevated Expenses and Stiff Competition Hurt Moody’s (MCO)
Per the Zacks analyst, Moody’s efforts to grow inorganically are likely to keep costs high, thus hurting bottom line growth. Also, stiff competition across the credit rating industry remains a woe.
Fortinet (FTNT) Rides on Product Strength, Marketing Efforts
Per the Zacks analyst, Fortinet is gaining from solid contributions of its growth-oriented products Security Fabric, cloud and SD-WAN. Increasing marketing efforts are also a positive.
Agilent (A) Gains from Strength in Chemical & Energy Market
Per the Zacks analyst, Agilent’s solid momentum in the chemical and energy market is helping it strengthen its Life Sciences & Applied Markets Group segment.
New Upgrades
Global Expansion Efforts Aid SVB Financial (SIVB) Top Line
Per the Zacks analyst, supported by a solid balance sheet position, SVB Financial continues to take efforts to expand globally. These initiatives are expected to keep supporting revenue growth.
Aspen (AZPN) to Gain From Product Portfolio & Acquisitions
Per the Zacks analyst, Aspen will benefit from rapid adoption of cloud-based solutions. The integration with Emerson’s OSI Inc and the Geological Simulation Software business also bodes well.
United Natural (UNFI) Benefits From Cross Selling Revenue
Per the Zacks analyst, United Natural is benefiting from cross selling gains. During fiscal third-quarter, cross selling gains with existing customers added incremental $95 million of revenue.
New Downgrades
Lower Orders & High Input Costs to Hurt Manitowoc
The Zacks Analyst is concerned that the ongoing supply chain challenges, inflationary costs and skilled labor shortages as well as the recent drop in order levels will hurt Manitowoc’s results.
Qorvo (QRVO) Plagued by Supply Chain Woes, Price Volatility
Per the Zacks analyst, Qorvo is likely to be plagued by fresh lockdown restrictions in China, raw material price volatility and supply chain disruptions owing to the prolonged Russia-Ukraine war.
MAXIMUS (MMS) Continues to Grapple With Higher Expenses
The Zacks Analyst is worried about MAXIMUS’s rising selling, general, and administrative expenses that are likely to weigh on the company’s bottom line.
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