Top Analyst Reports for Schlumberger, Becton Dickinson & Marathon Petroleum
Thursday, March 2, 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 Schlumberger Limited (SLB), Becton, Dickinson and Company (BDX) and Marathon Petroleum Corporation (MPC). 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 >>>
Schlumberger shares have outperformed the Zacks Oil and Gas - Field Services industry over the past year (+42.5% vs. +24.3%), reflecting the company's status as the largest oilfield services player, with a presence in every energy market across the globe. Being the leading provider of technology for complex oilfields, the firm is well-poised to take up new offshore projects in international markets.
Higher oil prices is aiding its overall business. SLB reported strong fourth-quarter results driven by strong activities in land and offshore resources in North America and Latin America. It made significant progress in its sustainability initiatives in 2022. SLB expects its Transition Technologies portfolio to cross the $1 billion revenue mark in 2023.
However, the company’s balance sheet has massive debt exposure compared with the composite stocks in the industry. Also, the aggressive capital budget remains a headwind for the company. As such, the stock warrants a cautious stance.
(You can read the full research report on Schlumberger here >>>)
Shares of Becton, Dickinson have underperformed the Zacks Medical - Dental Supplies industry over the past year (-14.9% vs. -9.3%). The company has reported year-over-year fall in revenues, BD Life Sciences and international revenues were worrying. Lower COVID-only testing revenues are discouraging from a business perspective. BD’s operations in a highly consolidated medical technology industry and a stiff competitive space are worrying. Forex woes prevail.
Nevertheless, BD’s improvement in the overall base revenues and the year-over-year uptick in bottom-line results in fourth-quarter fiscal 2022 were impressive. Robust results by majority arms and in the United States were promising. The expansion of both margins bodes well.
Regulatory approvals and launches were encouraging. BD’s strategic deals augur well. A strong solvency position is an added plus. BD’s results in fiscal fourth quarter were better than expected.
(You can read the full research report on Becton, Dickinson here >>>)
Marathon Petroleum shares have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past year (+67.0% vs. +23.5%). The company’s sale of its Speedway retail business for $21 billion provided the downstream operator with a much-needed cash infusion. The deal also comes with a 15-year fuel supply agreement per which Marathon Petroleum will supply 7.7 billion gallons of gasoline per year to 7-Eleven, thus ensuring a steady revenue stream.
But while refining fundamentals have certainly brightened from the covid lows, the sector is not out of the woods yet in terms of cash flows that remain anaemic and well below the pre-crisis levels. In particular, the weakness in business travel demand remains a complicating factor.
The continued increase in costs and expenses over the past few quarters and execution risks related to renewables foray are other negatives in the Marathon Petroleum story. As such, the stock warrants a cautious stance.
(You can read the full research report on Marathon Petroleum here >>>)
Other noteworthy reports we are featuring today include Northern Trust Corporation (NTRS), Twilio Inc. (TWLO) and Molson Coors Beverage Company (TAP).
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
SLB (SLB) Banks on Robust Demand for Well Completion
Product Launches, Regulatory Nods Continue to Aid BD (BDX)
Marathon (MPC) to Gain from Sale of Speedway Retail Unit
Featured Reports
Rising Revenues Aid Northern Trust (NTRS), Rising Costs Ail
Per Zacks analyst, Northern Trust's revenue growth due to rising interest rates and focus on expanding client base reflect strong organic growth. Yet, investment in technology keep costs high.
Twilio (TWLO) Banks on Growing Active Customer Accounts
Per the Zacks analyst, Twilio's continued focus on introducing products as well as its go-to-market sales strategy is helping it grow its active customer accounts, which is driving top-line growth.
Brand Strength to Drive Molson Coors' (TAP) Performance
Per the Zacks analyst, Molson Coors has been gaining from strength in Coors Light and Miller Lite brands. Also, its above premium portfolio and gains from Revitalization Plan act as growth drivers.
Ryder (R) Benefits From Dividends & Buyback, Expenses Ail
The Zacks analyst likes the shareholder-friendly measures adopted by Ryder. However, capital expenditures are concerning as they are likely to keep the bottom line under pressure.
Alkermes (ALKS) Diversified Portfolio Should Fuel Growth
Per the Zacks analyst, marketed drugs like Vivitrol, Aristada, and new drugs like Lybalvi should fuel growth for Alkermes. However, Alkermes is highly dependent on manufacturing and royalty revenues.
Energy Systems Segment Aids EnerSys (ENS), High Costs Hurts
Per the Zacks analyst, solid traction of EnerSys' Energy Systems segment, driven by robust broadband and data center businesses will drive the company's growth. High operating costs remain concerning.
U.S Cellular (USM) Rides on Broadband Demand, Customer Growth
Per the Zacks analyst, U.S. Cellular anticipates healthy customer growth, additional demand for data and migration through equipment installment plans and competitive pricing.
New Upgrades
Solid Momentum Across Business Units Benefits WESCO (WCC)
Per the Zacks analyst, strength across Electrical & Electronic Solutions, Communications & Security Solutions, and Utility & Broadband Solutions businesses is driving WESCO's top-line growth.
Brighthouse (BHF) Continues to Gain From Life & Annuity Products
Per the Zacks analyst, Brighthouse is set to grow on compelling suite of life and annuity products, growing insurance market. New sales of life insurance products, wide distribution network bode well.
CNO Financial (CNO) Rides on Rising Premiums & Lower Costs
Per the Zacks analyst, improving annuity collected premiums coupled with lower benefits and expenses poise CNO Financial well for growth. Also, strategic buyouts will boost its distribution reach.
New Downgrades
Huntsman (HUN) Hurt by Weak demand & Higher destocking
Per the Zacks Analyst, Huntsman faces headwinds from weak demand stemming from soft economic conditions in Europe & China. High levels of consumer destocking are hurting volumes for its segments.
Lower Demand & High Inflation Hurt Armstrong's (AWI) Growth
Per the Zacks analyst, lower demand, and increased input and transportation costs hurt Armstrong's growth prospects.
High Costs Likely to Hurt Marriott Vacations (VAC) Prospects
Per the Zacks analyst, inflationary environment as well as escalated marketing and sales expenses are likely to hurt Marriott Vacations. In fourth-quarter 2022, total expenses rose 5.6% year over year
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Schlumberger Limited (SLB) : Free Stock Analysis Report
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
Northern Trust Corporation (NTRS) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
Twilio Inc. (TWLO) : Free Stock Analysis Report
