Top Research Reports for Chevron, Amgen & HSBC

Tuesday, October 11, 2022

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Chevron Corporation (CVX), Amgen Inc. (AMGN) 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 >>>

Chevron shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+46.7% vs. +11.2%). The company seems poised for further capital appreciation based on a slew of tailwinds.

The supermajor is considered one of the best placed integrated oil firms to achieve sustainable production growth, thanks to its premier position in the lucrative Permian Basin. Chevron’s Noble Energy takeover expanded its footprint in the region and the DJ Basin along with the addition of cash generating offshore assets in Israel.

In shareholder friendly moves, the integrated major recently hiked its dividend and boosted the stock repurchase program. Considering all of these factors, we expect the company’s EPS to grow 148% this year. Consequently, Chevron is viewed as a preferred energy major to own now.

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

Amgen shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+15.0% vs. -32.8%). The company’s key drugs like Prolia, Repatha and Xgeva are driving sales, increasing competition for its legacy products is hurting the same.

Amgen’s new drugs Lumakras and Tezspire, are off to an encouraging start. The acquisition of ChemoCentryx, if successfully closed, will add a strategic new growth asset in Tavneos to Amgen’s portfolio. Amgen boasts a strong biosimilars portfolio with potential new products expected to drive long-term growth.

However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products including some biosimilars. The IRS tax litigation is an overhang on Amgen shares. Estimates have declined slightly ahead of Q3 results.

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

HSBC's shares have declined -12.3% over the past year against the Zacks Banks - Foreign industry’s decline of -18.1%. The company’s initiatives to improve market share in the U.K. and China will continue to support financials, these might lead to a rise in expenses, which will likely hurt HSBC’s profits.

Nevertheless, HSBC’s product and service leadership in many of the cross-border banking services helps it in widening its customer base. Its strong capital position, initiatives to strengthen digital capabilities, an extensive network and improvement in operating efficiency through business restructuring will likely keep aiding the company's growth.

Moreover, exiting from the U.S. and French retail banking operations is expected to help HSBC focus more on Asia. In sync with this, the acquisition of AXA Singapore insurance assets will expand business in the region.

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

Other noteworthy reports we are featuring today include ConocoPhillips (COP), CVS Health Corporation (CVS), and S&P Global Inc. (SPGI).

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

Chevron (CVX) Boosts Permian Position with Noble Buy

Amgen (AMGN) New Drugs Off to Good Start; Pipeline Strong

Expansion Efforts, Restructuring to Aid HSBC Holdings (HSBC)

Featured Reports

ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets
The Zacks analyst is upbeat about 750 undrilled Bakken Shale play locations of ConocoPhillips, which will drive oil production growth. Yet, rising production and operating costs are concerning.

CVS Health (CVS) Pharmacy Arm, Digital Capabilities Expand
The Zacks analyst is upbeat about CVS Health's above-expectation growth in pharmacy services arm. Amid pandemic, its digital health services like testing, vaccination and omni channel are expanding.

IHS Markit Buyout Aids S&P Global (SPGI) Amid Rising Costs
Per the Zacks analyst, the IHS Markit buyout is expected to significantly enhance S&P Global's data and analytics offerings. However, escalating expenses is worrisome.

Target's (TGT) Omnichannel & Store Expansion to Boost Sales
Per the Zacks analyst, Target's focus on enhancing omni-channel capacities, coming up with new brands, remodeling stores and expanding same-day delivery options are likely to fuel top-line growth.

Fortinet (FTNT) Rides on Product Strength, Marketing Efforts
Per the Zacks analyst, Fortinet is gaining from solid contributions of its growth-oriented products Security Fabric, cloud and SD-WAN. Increasing marketing efforts are also a positive.

Telefonica (TEF) To Benefit From Strong Product Portfolio
Per the Zacks analyst, Telefonica's performance benefitted from strong revenue growth across all business segments. However, pandemic-related supply-chain issues remain concerns

Cincinnati Financial (CINF) Benefits From Commercial Lines
Per the Zacks analyst, consistent progress at the Commercial Lines Insurance segment backed by solid premiums earned and several growth initiatives contributes to revenue growth of the company.

New Upgrades

Efficiency and Inorganic Initiatives to Aid UBS Group (UBS)
Per the Zacks analyst, UBS Group's focus on efficiency programs to support financials are encouraging. Solid capital position aiding opportunistic expansion strategies will likely aid long-term growth

Solid Investments & Rate Base Growth to Aid PG&E Corp (PCG)
Per the Zacks Analyst, solid capital expenditures in infrastructure bode well for PG&E Corp in the long haul. Also, favorable decision from CPUC is expected to boost its rate base growth.

Fee-based Contracts & Wide Spread Assets Aid ONEOK (OKE)
Per the Zacks analyst ONEOK's midstream assets in the high-production region and fee-based earnings commitments in its all three segments will drive its performance over the long run.

New Downgrades

Soaring Cost Inflation & Chip Crisis Hurt Toyota (TM)
Toyota faces the brunt of the ongoing chip crisis worsened by the Ukraine conflict. Also, per the Zacks analyst, cost inflation adds to the woes and is expected to dent fiscal '23 income and profit.

Helen of Troy (HELE) Troubled by Beauty Segment Softness
Per the Zacks analyst, Helen of Troy is seeing softness in its Beauty unit, wherein sales fell 15.4% in the second quarter. Beauty Core business net sales are likely to decrease 19-21% in fiscal 2023.

Higher Rates & Supply-Chain Woes Hurt Meritage Homes (MTH)
Per the Zacks analyst, Meritage Homes have been grappling with rising rates and a softer demand environment, labor shortages and supply chain disruptions.

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Chevron Corporation (CVX) : Free Stock Analysis Report
 
ConocoPhillips (COP) : Free Stock Analysis Report
 
Amgen Inc. (AMGN) : Free Stock Analysis Report
 
CVS Health Corporation (CVS) : Free Stock Analysis Report
 
HSBC Holdings plc (HSBC) : Free Stock Analysis Report
 
S&P Global Inc. (SPGI) : Free Stock Analysis Report
 
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