Yahoo Finance Top Analyst Reports for Exxon Mobil, Home Depot & Intel
Tuesday, August 29, 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 Exxon Mobil Corporation (XOM), The Home Depot, Inc. (HD) and Intel Corporation (INTC). 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 lagged the market this year (-1.2% vs. +16.4% for the S&P 500 index), but have handily outperformed fellow super major Chevron (-1.2% vs. -11.1%) given Chevron's relatively greater commodity-price leverage. 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.
In Stabroek Block, located off the coast of Guyana, ExxonMobil has made many major discoveries that significantly improve its production outlook. The advantaged growth projects of Guyana have lower greenhouse gas intensity than most of the oil and gas-producing resources across the globe. ExxonMobil also has a strong presence in the Permian Basin, the most prolific resource in the United States.
However, the firm’s dividend yield is lower than the composite stocks belonging to the industry. Moreover, weak industry margins and lower sales from the Chemical Products business especially in the United States, are hurting the energy firm’s operations.
(You can read the full research report on Exxon Mobil here >>>)
Shares of Home Depot have modestly outperformed the Zacks Building Products - Retail industry over the past six months (+13.7% vs. +13.3%). The company has been witnessing significant benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.
The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. The company remains on track with its strategic investments to build a Pro ecosystem.
However, Home Depot top and bottom-lines declined year over year in second-quarter fiscal 2023. Results were impacted by a deflation in lumber prices and pressures in several big-ticket discretionary categories. HD retained its conservative view for fiscal 2023.
(You can read the full research report on Home Depot here >>>)
Intel shares have gained +35.2% over the past six months against the Zacks Semiconductor - General industry’s gain of +71.9%. The company is expanding its manufacturing capacity in Germany and Poland to accelerate its IDM 2.0 (Integrated Device Manufacturing) strategy and create an end-to-end leading-edge semiconductor manufacturing value chain in Europe.
It is gaining rapid strides in the data center business with integrated solutions that are highly competitive in prices. Solid traction of the Mobileye business related to autonomous car technology remains a tailwind. Strong focus on market diversification, innovation and a comprehensive product portfolio are tailwinds.
However, intense market volatility, depleting customer inventory levels and continued business uncertainties continue to impact revenues. High debt burden, forex woes and geopolitical volatility are other concerns. Stiff industry competition from established players in the market are depleting margins.
(You can read the full research report on Intel here >>>)
Other noteworthy reports we are featuring today include ConocoPhillips (COP), NextEra Energy, Inc. (NEE) and Vertex Pharmaceuticals Incorporated (VRTX).
Director of Research
Sheraz Mian
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) Banks on Offshore Guyana Discoveries
Home Depot's (HD) Interconnected Strategy to Boost Sales
Intel (INTC) Poised to Benefit from Holistic Growth Model
Featured Reports
ConocoPhillips (COP) to Gain From Surmont Asset Acquisition
Acquiring Surmont will provide diversity to ConocoPhillips' portfolio and add $600 million of free cash flow in 2024. Yet, rising production and operating costs concern the Zacks Analyst.
NextEra (NEE) Gains from Steady Investment, Renewable Focus
Per the Zacks analyst, NextEra's planned investment $53 billion through 2027 to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.
Vertex (VRTX) Enjoys a Strong Non-Cystic Fibrosis Pipeline
The Zacks analyst says that though Vertex (VRTX) enjoys strong position in the cystic fibrosis (CF) market, it has a broad non-CF pipeline. Multiple clinical milestones are expected in 2023 and 2024
Aon's (AON) Robust Business Generation Aids, High Costs Hurt
Per the Zacks analyst, robust business generation and strong retention are helping AON enhance its capabilities, which, in turn, is boosting its profits. However, rising expenses remain a concern.
Autodesk (ADSK) Rides on Strong Demand for Cloud Solutions
Per the Zacks analyst, Autodesk is benefiting from higher demand for its cloud-based products, mobile solutions and design suites.
Organic Growth Aids AmerisourceBergen (ABC) Amid Competition
Per the Zacks analyst AmerisourceBergen should benefit from continued solid organic revenue growth, World Courier unit & Specialty distribution business amid cutthroat competition in the Medtech space
Improved Bookings Aid Caesars Entertainment (CZR), Costs High
Per the Zacks analyst, Caesars Entertainment is likely to benefit from pent-up demand and solid booking trends in Las Vegas. However, high costs and construction related disruptions remain concerns.
New Upgrades
Splunk (SPLK) Rides on Portfolio Strength, AI Integration
Per the Zacks analyst, Splunk will likely gain from healthy demand in cloud services, cybersecurity and observability domains. The development of premium products with advanced AI is a tailwind.
United Airlines (UAL) Benefits From Rosy Passenger Traffic
Upbeat air-travel demand is driving United Airlines' top line. The Zacks analyst also finds the company's fleet-modernization initiatives very encouraging.
O-I Glass (OI) Gains from its Margin Expansion Initiatives
Per the Zacks analyst, O-I Glass is gaining from its focus on performance improvement, margin expansion initiatives, and innovation. High selling prices are also aiding margins.
New Downgrades
Weak Demand in Few Markets, High Costs Ail John Bean (JBT)
The Zacks analyst is concerned that John Bean's results will continue to bear the brunt of weak demand in core meat and poultry end markets as well as higher input costs and supply chain issues.
Higher Inventory Shrink Ails DICK'S Sporting's (DKS) Margin
Per the Zacks analyst, DICK'S Sporting's elevated inventory shrink and continued macro-economic uncertainties dented margins which in turn resulted in 23% decline in Q2 bottom line.
Higher Expenses, Net Outflows Hurt Affiliated Managers (AMG)
Per the Zacks analyst, elevated expenses as well as steady net client cash outflows will likely hurt Affiliated Managers. The presence of substantial intangible assets on its balance sheet is a woe.
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Intel Corporation (INTC) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
