Monday, April 25, 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 Alphabet Inc. (GOOGL), Amazon.com, Inc. (AMZN), and Chevron Corporation (CVX). 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 >>>
Shares of
Alphabet
have outperformed the Zacks Internet – Services industry over the past year (+4.2% vs. -10.6%) on the back of the company’s strong leverage to favorable ad spending trends and leading cloud business, trends that the Zacks analyst believes will be further confirmed by the company’s Q1 earnings report this week. Moreover, expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results. Moreover, Google’s mobile search is gaining solid momentum.
The Zacks analyst believes that a strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Further, its deepening focus on the wearables category remains a tailwind. Furthermore, the company’s growing efforts to gain foothold in the healthcare industry are other positives. Alphabet is expanding its presence in the autonomous driving space is contributing well. However, its growing litigation issues and increasing expenses are concerns.
(You can
read the full research report on Alphabet here >>>
)
Amazon
shares have struggled lately, as the comapny is faced with margin pressures as a result of growing expenses associated with supply-chain constraints and labor supply shortages.
However, The Zacks analyst believes that the company is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Further, strengthening relationship with third-party sellers is a positive. Also, growing momentum across Amazon Music is contributing well. Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance.
Also, expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. Further, robust Alexa skills and expanding smart home products portfolio are positives. Additionally, the company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds.
(You can
read the full research report on Amazon here >>>
)
Shares of
Chevron
have outperformed the Zacks Oil and Gas – Integrated – International industry over the past year (+61.2% vs. +52.3%). The company is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up. America’s No. 2 energy company’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin.
However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially. The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of oil and gas produced. Finally, Chevron has been a laggard to jump into the net-zero bandwagon.
(You can
read the full research report on Chevron here >>>
)
Other noteworthy reports we are featuring today include Berkshire Hathaway Inc. (BRK.B), AstraZeneca PLC (AZN) and Danaher Corporation (DHR).
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
Alphabet (GOOGL) Benefits From Cloud & Search Initiatives
Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)
Chevron (CVX) to Gain from Massive Permian Acreage
Featured Reports
Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Ail
Per the Zacks analyst, Berkshire is posed to grow on solid insurance business that drive earnings and generates maximum return on equity. However, exposure to cat loss induces earnings volatility.
Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact
The Zacks analyst says that AstraZeneca’s cancer drugs, Lynparza, Tagrisso and Imfinzi, should keep driving revenues despite slowing sales in China and COVID impact on sales of some drugs.
Life Sciences Business Drives Danaher (DHR), High Costs Ail
Per the Zacks analyst, strength in Danaher’s Life Sciences business, fueled by solid demand for its bioprocessing products should drive its revenues. High operating costs and expenses remain concerns.
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
Per the Zacks analyst, NextEra’s planned capital investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.
Growing Top-line Aids AmEx (AXP), Escalating Expenses Hurt
Per the Zacks analyst, its growing revenues driven by strategic actions and high consumer spending has led to significant growth. However, steep expenses continue to weigh down the margins.
CSX’s Dividends and Buybacks Boost, Supply Chain Bothers
The Zacks analyst welcomes the company’s efforts to add shareholder value. However, high operating expenses are worrisome. Low overall volumes due to supply-chain disruptions are concerning as well.
A Slew of Product Launches Aid BD (BDX) Amid Stiff Competition
The Zacks analyst is upbeat about BD’s plethora of launches in recent times despite its operation in a highly competitive market.
New Upgrades
Alkermes’ (ALKS) Portfolio of Marketed Drugs Drives Revenues
Per the Zacks analyst, Alkermes’ portfolio of proprietary products is driving growth. Approval of newer drugs will generate incremental sales. The company’s robust pipeline is also progressing well.
Jabil (JBL) Rides on Solid Demand, Operational Execution
Per the Zacks analyst, Jabil is well-positioned to benefit from the increasing demand in key end markets coupled with excellent operational execution and skillful management of supply chain dynamics.
Solid Steel Demand & Investments to Aid National Steel (SID)
Per the Zacks analyst, National Steel will gain from solid steel demand across automotive, domestic and international markets as well as increased investment in infrastructure.
New Downgrades
Altice (ATUS) Impaired by Increasing Costs, Debt Burden
Per the Zacks analyst, apart from a huge debt burden, Altice is struggling with escalating programming costs per customer due to an increase in contractual rates, which can hurt its operating margin.
Dismal RevPAR & Uneven Demand Hurt Hyatt’s (H) Prospects
Per the Zacks analyst, Hyatt is likely to be hurt by coronavirus induced uneven demand and travel restrictions. Also, decline in RevPAR from pre-pandemic levels is a concern.
Declining Orders & Supply Chain Constraints Hurt Wayfair (W)
Per the Zacks analyst, Wayfair is witnessing a decrease in orders per customer. Further, it is suffering from supply chain disruptions owing to the impacts of the coronavirus pandemic.
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