Top Research Reports for Exxon Mobil, Coca-Cola & AstraZeneca
Thursday, February 23, 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 Coca-Cola Company (KO) and AstraZeneca PLC (AZN). 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 >>>
Shares of Exxon Mobil have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+44.8% vs. +24.1%). This reflects 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. The company has made more than 30 discoveries in offshore Guyana since 2015.
ExxonMobil also has a strong presence in the prolific Permian Basin, where it delivered record production in the third quarter. Considering the low cost of production in both assets, ExxonMobil will continue to generate handsome returns. Also, a strong presence in chemicals and refining operations is noteworthy.
However, ExxonMobil has constantly been bearing the brunt of increasing expenses, adversely affecting its income. Also, the integrated energy giant’s financials were weakened by years-long significant spending on low-return developments and the coronavirus pandemic.
(You can read the full research report on Exxom Mobil here >>>)
Shares of Coca-Cola have underperformed the Zacks Beverages - Soft drinks industry over the past year (-0.9% vs. +7.0%). The company is facing pressures from higher transportation and input costs. Higher marketing spends and currency headwinds are concerning.
Nevertheless, Coca-Cola’s sales and earnings surpassed estimates for the seventh straight quarter. KO’s results benefited from the continued momentum from the first half of 2022. Sales gained from revenue growth across its operating segments, aided by an improved price/mix and an increase in concentrate sales.
Coca-Cola gained from underlying share gains in both at-home and away-from-home channels. We estimate organic revenue growth of 14.8% and comparable earnings per share growth of 6.6%, in line with the company’s raised view for 2022. Innovations and accelerating digital investments bode well.
(You can read the full research report on Coca-Cola here >>>)
AstraZeneca shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+18.4% vs. +13.6%). The company’s key drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues. Its pipeline is strong with several phase III data readouts lined up.
AstraZeneca has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. The Alexion buyout strengthens its immunology franchise, adding several drugs that are boosting its top line.
However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales are slowing down in its key market, China. Shares have outperformed the industry in the past one year. Estimate movement is mixed ahead of the Q4 earnings release. The company has a positive record of earnings surprises in the recent quarters.
(You can read the full research report on AstraZeneca here >>>)
Other noteworthy reports we are featuring today include BlackRock, Inc. (BLK), CSX Corporation (CSX) and Activision Blizzard, Inc. (ATVI).
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) Gains From Discoveries at Stabroek Block
Coca-Cola's (KO) Digital Investments to Aid the Top Line
Cancer Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong
Featured Reports
Buyouts, Active Equity Focus Aid BlackRock (BLK), Costs Ail
Per the Zacks analyst, BlackRock's acquisition efforts and initiatives to restructure the active equity business will aid the top line. These efforts might lead to higher costs, thus hurting profits.
Dividends & Buybacks Boost CSX's Prospects Despite Cost Woes
The Zacks analyst is impressed with CSX's efforts to reward its shareholders. However, high operating expenses, mainly due to elevated fuel costs, are hurting its bottom line.
Solid Gaming Portfolio Aids Activision's (ATVI) Prospects
Per the Zacks analyst, Activision's top line is expected to benefit from a burgeoning user base on the back of a sturdy gaming portfolio and e-sports endeavors.
NXP Semiconductors (NXPI) Benefits From End-Market Momentum
Per the Zacks analyst, strengthening momentum across automotive, mobile and communication infrastructure end markets is driving NXP Semiconductors' business growth.
IDEXX (IDXX) Rides on Strong CAG Growth Amid Forex Woes
The Zacks analyst is bullish on CAG Diagnostics recurring revenues growth boosting IDEXX top-line. Yet, adverse currency movement continues to pose concerns.
Digital Transformation Driving Demand For CDW's Products
Per the Zacks analyst, CDW Corporation's product and solutions portfolio is gaining from ongoing digital transformation. High debt load and stiff competition remain concerns.
Higher Demand for Domain Names Benefits VeriSign (VRSN)
Per the Zacks analyst, VeriSign's performance is benefitting from growth in .com and .net domain name registrations. However, high debt load and stiff competition remain concerns.
New Upgrades
Robust Demand and Digital Ticketing Aids Live Nation (LYV)
Per the Zacks analyst, Live Nation is likely to benefit from robust demand for live events and increased digital ticket sales.
Innovations to Aid Textron (TXT), Supply Shortage May Hurt
Per the Zacks analyst, new product launch will enable Textron to capture more shares in the market. Yet COVID-19 induced global supply chain shortage might hurt deliveries and thereby its revenues.
AMERISAFE (AMSF) Benefits From Policy Retention & No Debt
Per the Zacks analyst, AMERISAFE's strong policy retention, conservative investment portfolio and solid financial position with no debt position it for significant growth.
New Downgrades
Falling Used Vehicle Prices & High Debt to Ail CarMax (KMX)
Declining prices of used vehicles (both wholesale and retail) are likely to limit CarMax's revenues and margins. The Zacks analyst is also worried of the firm's elevated leverage of 77%.
General Electric (GE) Hurt by Renewable Energy Weakness
Persistent weakness in the Renewable Energy segment due to lower US onshore wind volumes and inflationary pressure has made the Zacks analyst turn bearish on the stock.
Exposure to Catastrophe Loss, Rising Expenses Hurt Palomar (PLMR)
Per the Zacks analyst, higher losses from catastrophes affect Palomar's underwriting results. Also rising expenses due to underwriting and acquisition expenses weigh on margin expansion.
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AstraZeneca PLC (AZN) : Free Stock Analysis Report
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
CSX Corporation (CSX) : Free Stock Analysis Report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
