Yahoo Finance Top Analyst Reports for Exxon Mobil, PepsiCo & HSBC
Monday, March 10, 2024
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), PepsiCo, Inc. (PEP) and HSBC Holdings plc (HSBC). 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 (+5.4% vs. +4.9%). The company being a reliable player in the energy sector, boasts a resilient integrated capital structure and a track record of prudent CAPEX management. Its strategic discoveries in the Stabroek Block and Permian Basin promise growth and lower greenhouse gas intensity.
With a robust balance sheet, ExxonMobil prioritizes shareholder returns, evidenced by substantial buybacks and a strategic acquisition of Pioneer Natural Resources. XOM reported better-than-expected quarterly earnings due to increased liquids production.
However, challenges loom, notably in upstream operations susceptible to volatile oil prices and regulatory hurdles like the $2B impairment in California. While committed to shareholders, XOM faces scrutiny for lagging industry peers in dividend yield and enduring financial strain from low-return investments and pandemic impacts.
(You can read the full research report on Exxon Mobil here >>>)
Shares of PepsiCo have underperformed the Zacks Beverages - Soft drinks industry over the past year (-2.1% vs. +7.4%). The company banks on strength and resilience in its categories, diversified portfolio, modernized supply chain, improved digital capabilities, flexible go-to-market distribution systems and robust consumer demand trends.
These factors along with robust pricing aided PepsiCo’s earnings and organic revenues fourth-quarter 2023. The company witnessed organic revenue growth across the global beverage and convenient food businesses. Additionally, the company’s productivity and cost-management initiatives bode well. For 2024, PEP expects to deliver organic revenues revenue growth of at least 4%.
However, PepsiCo witnessed soft volume trends across both businesses, which impacted reported revenues in the fourth quarter. Adverse currency rates also remain headwinds.
(You can read the full research report on PepsiCo here >>>)
Shares of HSBC have gained +16.0% over the past year against the Zacks Banks - Foreign industry’s gain of +27.7%. The company’s strong capital position, higher interest rates, an extensive network and business restructuring initiatives will keep supporting HSBC. The company is winding down its retail operations in Canada and is in the process of fully exiting Russia (gets Russia unit sale approval).
In order to focus more on Asia, the company is set to acquire Citigroup’s wealth business in China. However, HSBC’s fourth-quarter 2023 results were hurt by lower revenues. While its efforts to improve market share in the Asia region will aid financials in the long run, it might lead to a rise in near-term costs.
Because of its growth strategy and higher technology-related expenses, HSBC expects 2024 expense growth of 5%. The current tough macroeconomic backdrop is another near-term headwind.
(You can read the full research report on HSBC here >>>)
Other noteworthy reports we are featuring today include Cadence Design Systems, Inc. (CDNS), CrowdStrike Holdings, Inc. (CRWD) and Vulcan Materials Company (VMC).
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 Resilient Capital Structure
PepsiCo's (PEP) Investments in Business Drive the Top Line
Restructuring to Aid HSBC Holdings (HSBC) Amid Cost Woes
Featured Reports
Cadence (CDNS) Benefits from Diversified Product Portfolio
Per the Zacks analyst, Cadence's performance is gaining from solid demand for the company's diversified product portfolio. Frequent product launches and strategic collaborations are tailwinds.
CrowdStrike (CRWD) Rides on Product Strength, Acquisitions
Per the Zacks analyst, CrowdStrike is gaining from solid contributions of its growth-oriented products, primarily Falcon platform. Also, strategic buyouts like Bionic and Reposify are positive.
Strategic Tie-Ups Aid Global Payments (GPN), High Costs Ail
Per the Zacks analyst, Global Payments gains from its healthy revenue stream on the back of buyouts, partnerships and electronic payment transactions. However, high expense level continues to bother.
Investments & Clean Power Generation Aid AVANGRID (AGR)
Per the Zacks analyst, AVANGRID's consistent investments will assist in upgrading its infrastructure. An expanding wind and solar generation portfolio will boost the company's performance.
eSignature Strength Boosts DocuSign (DOCU) Despite Expenses
The Zacks analyst is positive about DocuSign's top line, as it is significantly benefiting from continued customer demand for eSignature. However, escalating expenses are creating headwinds.
Paramount Global (PARA) Banks on Paramount+, PlutoTV Growth
Per the Zacks analyst, Paramount Global is benefiting from strong viewership for its solid portfolio of streaming services including Paramount+ and PlutoTV.
Rocket's (RCKT) Progress With Gene Therapies Encouraging
The Zacks Analyst is impressed with Rocket's encouraging gene therapy pipeline. An approval for the company's first product Kresladi, to treat leukocyte adhesion deficiency-I, is expected in June.
New Upgrades
Robust Public Sector Demand to Aid Vulcan's (VMC) Prospects
Per the Zacks Analyst, Vulcan is likely to benefit from strong public sector demand. Also, strong aggregate-led business performance, and large industrial project demand bode well.
Solid Bookings & Fleet Expansion to Aid Royal Caribbean (RCL)
Per the Zacks analyst, Royal Caribbean is likely to benefit from robust booking trends, fleet expansion and digital initiatives. Also, strength in consumer onboard spending bodes well.
Decent Comps Run to Fuel Sprouts Farmer' (SFM) Top Line
Per the Zacks analyst, Sprouts Farmers' focus on product innovation, emphasis on e-commerce and expansion of private label offerings bode well. Comps are likely to rise 1.5-3.5% in 2024.
New Downgrades
Rising Expenses and Lower Order backlog to Ail Thor (THO)
The Zacks analyst is worried about Thor's rising SG&A expenses as a percentage of sales amid high investments in automation and innovation strategies. Declining backlog remains a concern.
Weakness in Industrial Business Unit to Hurt Plexus (PLXS)
Per the Zacks analyst, weakness in the Healthcare/Life Sciences and Industrial sectors is affecting Plexus' performance. Also, stiff competition and volatile macro environment is concerning.
Softness in Biopharma Business Impedes Bio-Rad (BIO) Growth
The Zacks analyst is worried about Bio-Rad witnessing reduced demand from biopharma customers for its process chromatography resins, resulting slower growth in Life Science Segment.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
Vulcan Materials Company (VMC) : Free Stock Analysis Report
Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
HSBC Holdings plc (HSBC) : Free Stock Analysis Report
CrowdStrike (CRWD) : Free Stock Analysis Report
