Yahoo Finance Top Analyst Reports for Chevron, SAP & United Parcel Service
Friday, December 8, 2023
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 Chevron Corp. (CVX), SAP SE (SAP) and United Parcel Service, Inc. (UPS). 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 >>>
Chevron’s shares have underperformed the Zacks Oil and Gas - Integrated - International industry over the past year (-11.9% vs. -0.5%). The company has grappled with the 2020 commodity price crash, leading to substantial spending cuts. Concerns include high sensitivity to oil prices and a 10-year reserve replacement ratio of 100%, indicating challenges in replenishing produced energy. Considering all these factors, investors are advised to wait for a better entry point.
Nevertheless, Chevron is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin. Further, the recent acquisition of Hess Corp. is expected to significantly strengthen Chevron's presence in oil-rich Guyana.
(You can read the full research report on Chevron here >>>)
Shares of SAP have outperformed the Zacks Computer - Software industry over the year-to-date period (+56.3% vs. +55.2%). The company’s performance is benefiting from continued strength in its cloud business (especially the new Rise with SAP and Grow with SAP solutions) across all regions.
Momentum in SAP’s business technology platform, particularly the S/4HANA solution along with opportunities presented by proliferation of generative AI bode well. Management also reaffirmed its 2023 guidance as well as its long-term targets. Frequent product launches, and strategic acquisitions and collaborations are other tailwinds.
However, continued softness in the Software license and support business segment coupled with global macroeconomic weakness and geopolitical instability remain concerning. Also, increasing research & development costs, and stiff competition in the cloud space are headwinds.
(You can read the full research report on SAP here >>>)
Shares of United Parcel Service have underperformed the Zacks Transportation - Air Freight and Cargo industry over the past year (-8.4% vs. +6.7%). The company now expects revenues in 2023 to be between $91.3-$92.3 billion. The new forecast is not only below the previous outlook of around $93 billion but also much lower than 2022's actual figure.
Management trimmed its revenue forecast for the full year due to weak e-commerce delivery demand and lost clients during the turbulent labor negotiations. The five-year deal with the International Brotherhood of Teamsters for better pay and working conditions is worth less than $30 billion. It is likely to keep labor cost at high levels.
UPS is looking to drive growth in this uncertain scenario by improving efficiencies. Efforts to reward its shareholders also bode well for UPS stockholders. The company's strong free cash flow generating ability is encouraging and supports its shareholder-friendly activities.
(You can read the full research report on United Parcel Service here >>>)
Other noteworthy reports we are featuring today include Citigroup Inc. (C), Regeneron Pharmaceuticals, Inc. (REGN) and TransDigm Group Inc. (TDG).
Mark Vickery
Senior Editor
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
Chevron (CVX) to Gain Guyana Foothold with Hess Buy
Solid Momentum in Cloud Business Driving SAP's Performance
UPS Banks on Dividends & Buybacks Amid Shipping Volume Woes
Featured Reports
Citigroup (C) Progresses on Strategic Sales Amid Rising Costs
Per the Zacks analyst, Citigroup's progress on the consumer banking business exit will help focus on core operations. Yet, revamping technology and risk management framework might elevate expenses.
Dupixent Profits Fuels Regeneron (REGN), Eylea Decline A Woe
Per the Zacks analyst, stellar performance of Dupixent fuel, REGN even as lead drug Eylea faces disruption. The company's progress with the oncology portfolio & other candidates is also impressiv
Norfolk Southern (NSC) Strong on Dividends Amid Volume Woes
The Zacks analyst likes the company's efforts to reward its shareholders. However, below-par volumes due to weak freight-demand scenario remain a concern.
YUM! Brands (YUM) Banks on Digital Efforts Amid High Costs
Per the Zacks analyst, YUM! Brands focus on digital initiatives and refranchising efforts bode well. However, challenging macro environment, high labor costs and commodity inflation are concerns.
Zscaler (ZS) Benefits From Acquisitions & Product Refreshes
Per the Zacks analyst, Zscaler is benefiting from its strategic acquisitions like Canonic Security and ShiftRight. Moreover, frequent product refreshes are helping it in gaining new customers.
GenAI-Enabled PCs to Aid HP (HPQ) Personal Systems Revenues
Per the Zacks analyst, growing interest in generative artificial intelligence-enabled PCs might give a fresh boost to HP's Personal Systems segment revenues in fiscal 2024 and beyond.
Cardinal Health's (CAH) Diverse Products Gives Competitive Edge
Per the Zacks analyst, Cardinal Health's diversified portfolio represents long-term opportunities. Its products provide the company with a competitive edge in the niche space with fierce competition.
New Upgrades
Solid Defense Budget, Air Travel to Benefit TransDigm (TDG)
Per the Zacks analyst, expansionary defense budgetary policy adopted by the U.S. administration should benefit TransDigm. Also recovering air travel should boost its commercial aftermarket revenues.
Strength in Intelligent Devices Unit Benefits Emerson (EMR)
Per the Zacks analyst, Emerson's Intelligent Devices unit is driven by strength in the measurement and analytical businesses due to strong demand in the hybrid and process end markets.
Abercrombie & Fitch's (ANF) Hollister Brand Exhibits Momentum
Per the Zacks analyst, Abercrombie & Fitch has been experiencing momentum in its Hollister label. In third-quarter fiscal 2023, the Hollister brand registered sales growth of 11% year over year.
New Downgrades
Rising Interest Rates to Hit SunPower's (SPWR) Bookings
Per the Zacks analyst, rising interest rates have led to increased solar installation expenses thereby impacting bookings for SunPower. This in turn may hurt its future revenue growth.
Weakness in Energy Systems Segment to Hurt EnerSys (ENS)
Per the Zacks analyst, EnerSys is experiencing weakness across its Energy Systems segment due to decrease in capital spending of the telecommunication and broadband customers.
Weak Premium Retention & High Debt Affect ProAssurance (PRA)
Per the Zacks analyst, volatility in ProAssurance's premium retention in physician business can hinder top-line growth. Also, a high debt level is concerning.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Citigroup Inc. (C) : Free Stock Analysis Report
Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
