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Top Analyst Reports for Alibaba, Chevron & Shopify

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·6-min read
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Tuesday, May 26, 2020

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 Alibaba Group (BABA), Chevron (CVX) and Shopify (SHOP). 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 >>>

Alibaba shares have lagged Amazon (AMZN) only modestly over the past year (+31.5% vs. +33.5%), but the underperformance is far more pronounced in the year-to-date period (-3.9% vs. +31.7%), likely reflecting a 'China discount'. Overall, the company remains a standout performer. 

Alibaba’s strengthening cloud business with its expanding customer base continues to drive its performance. Its New Retail strategy is also gaining momentum. This is aiding growth in Tmall Import, Hema fresh food grocery business and Intime Department Stores.

However, higher costs associated with new initiatives remain a major concern. Also, COVID-19 related economic uncertainties and macro headwinds in China are major concerns. In addition, rising competition from e-commerce players poses a risk.

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

Chevron's -20.6% decline in the year-to-date period (vs. -7.4% decline for the S&P 500 index) reflects the tough oil-price environment. But the stock has handily outperformed Exxon (XOM) and the broader super majors group. 

The company's worldwide production averaged a record 3,058 MBOE/d in 2019, reflecting an increase of 4.4% thanks to expansion in the lucrative Permian Basin. Chevron’s well economics in the play also continues to improve as the company has been able to achieve a 40% reduction in its development and production costs since 2015.

However, Chevron is not immune to this historic oil price crash, forcing it to cut capex and suspend buybacks. The company’s high oil price sensitivity is a concern too.

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

Shopify’s shares have gained +88.2% over the past three months against the Zacks Internet Services industry’s rise of +11.6%. The Zacks analyst believes that increasing investments on product development and platform are likely to limit margin expansion in the near term. Moreover, the company suspended its guidance for 2020 due to COVID-19 induced uncertainties prevailing in the market.

Shopify delivered stellar first-quarter results. The top line benefited from growth in the number of merchants and increased buying of essentials due to COVID-19 induced lockdowns. Moreover, robust performance of Shopify Shipping, Shopify Payments and Shopify Capital are key catalysts.

The company continues to launch merchant-friendly applications to cater to the demands of a dynamic retail environment, thereby bolstering merchant base. Initiatives aimed at international expansion also remain noteworthy.  

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

Other noteworthy reports we are featuring today include Duke Energy (DUK), Biogen (BIIB) and Walgreens Boots Alliance (WBA).

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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

Alibaba (BABA) Drives On Cloud Growth; Investments Hurt

Chevron (CVX) Buoyed by Improving Permian Well Economics

Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)

Featured Reports

Renewable Growth Aids Duke Energy (DUK), Demand Decline a Woe

Per the Zacks analyst, Duke Energy's expanding solar and wind portfolio is reducing its global carbon footprint.

Biogen (BIIB) Drug Sales to Show Mixed Impact of COVID-19

The Zacks analyst notes that while COVID-19 is unlikely to significantly weigh on sales of Biogen's key drug, Tecfidera in 2020, sales of Tysabri and Spinraza may be hurt by the same.

US Retail Growth Aids Walgreens (WBA) Amid Coronavirus Impact

The Zacks analyst is bullish about Walgreens' new alliances and boost in prescription growth in Retail Pharmacy USA.

Solid Assets Growth Aid BNY Mellon (BK) Amid Lower Rates

Per the Zacks analyst, solid assets under management growth, global diversification and manageable expense levels aid BNY Mellon.

Valero (VLO) Banks on Distillate Fuels, Ethanol Unit Hurts

Valero is well positioned to capitalize on growing demand for distillate fuels. However, a weak ethanol business concerns the Zacks analyst.

Robust Product Portfolio & Strategic Deals Aid ANSYS (ANSS)

Per the Zacks analyst, ANSYS is benefiting from expanding portfolio of simulation solutions, product enhancements and acquisitions.

Nokia (NOK) Rides on Commercial 5G Deals Amid COVID-19 Crisis

Per the Zacks analyst, Nokia is likely to gain from strong operational performance and the competitiveness of its offerings despite the negative impact of COVID-19 on the overall market environment.

New Upgrades

Solid Gaming Portfolio Aids Activision's (ATVI) Prospects

Per the Zacks analyst, Activision's top line is expected to benefit from a burgeoning user base on the back of a sturdy gaming portfolio and e-sports endeavors.

Ericsson (ERIC) Benefits from Robust 5G Networks Business

Per the Zacks analyst, Ericsson is currently seeing a strong momentum for 5G in North America, Saudi Arabia and Japan. Moreover, the combination of T-Mobile and Sprint is likely to boost investments.

Puma Biotech (PBYI) Rides High on Robust Performance of Nerlynx

Per the Zacks analyst, sales of Puma Biotech's breast cancer drug, Nerlynx has improved steadily with a strong uptake year over year. The recent label expansion should also drive its sales in future.

New Downgrades

No Approved Products in Moderna's (MRNA) Portfolio a Concern

Per the Zacks analyst, with no approved product in Moderna's portfolio, it has no sales and depends on collaborations and grants for its revenues.

Weak Demand, Higher Costs to Dent WestRock's (WRK) Results

The Zacks analyst remains concerned that WestRock's results will bear the brunt of higher recycled fiber costs and weak demand in some of its markets amid the COVID-19 pandemic.

Stericycle (SRCL) Grapples With Declining CRS businesses

The Zacks Analyst is worried about the top line being hurt by weak Communication and Related Services (CRS) business due to decline in recall events and lower call volumes in communication solutions.

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Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Biogen Inc. (BIIB) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
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