Top Stock Reports for Alphabet, Marsh & McLennan & Pioneer Natural Resources
Thursday, July 28, 2022
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 Alphabet Inc. (GOOGL), Marsh & McLennan Companies, Inc. (MMC), and Pioneer Natural Resources Company (PXD). 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 >>>
Alphabet shares have declined -16.7% over the past year against the Zacks Internet - Services industry’s decline of -32.0%. The company’s growing litigation issues and increasing expenses are concerns. However, strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space.
Further, major updates in its search segment are enhancing the search results. Moreover, Google’s mobile search is gaining solid momentum. Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term.
Further, its deepening focus on the wearables category remains a tailwind. Furthermore, the company’s growing efforts to gain a foothold in the healthcare industry are other positives. Also, Alphabet’s expanding presence in the autonomous driving space is contributing well.
(You can read the full research report on Alphabet here >>>)
Marsh & McLennan shares have outperformed the Zacks Insurance - Brokerage industry over the past year (+9.2% vs. -1.9%). The company is well-poised to grow on the back of significant investments and acquisitions made within its operating units, the launch of new products, digital capabilities and branching out into new businesses. Its increased stake in Marsh India will further buoy growth.
Its revenues have been increasing thanks to a wide geographic presence and strong client retention. The Risk and Insurance Services unit has been contributing to its revenue growth. It reported strong second-quarter results on improved performance of both the segments. Enhanced operations in Latin America, Asia Pacific and EMEA were major positives.
It has plans to deploy roughly $4 billion capital in 2022. However, its escalating operating expenses might weigh on the margins. High debt levels remain a concern. Its valuation remains stretched at the current level.
(You can read the full research report on Marsh & McLennan here >>>)
Pioneer Natural Resources shares have gained +66.1% over the past year against the Zacks Oil and Gas - Exploration and Production - United States industry’s gain of +69.4. This company’s divestment of its Delaware Basin assets has established itself as the only large-cap exploration and production pure play in the Midland Basin.
For 2022, the company projects total production at 623-648 MBoe/d, marking an increase from 617.3 MBoe/d reported last year. Coupled with higher oil prices, increased production will boost its bottom line. For the second quarter, the company announced a dividend payment of $7.38 per share of common stock, suggesting a 95.2% hike. Also, its debt to capitalization has been persistently lower than the industry over the past few years.
However, PXD has been bearing the brunt of increasing costs for the past few quarters. Also, the upstream energy player realized hedging losses of $135 million in the first quarter amid rising oil prices. As such, the stock warrants a cautious stance.
(You can read the full research report on Pioneer Natural Resources here >>>)
Other noteworthy reports we are featuring today include Texas Instruments Incorporated (TXN), Air Products and Chemicals, Inc. (APD), and Palo Alto Networks, Inc. (PANW).
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
Alphabet (GOOGL) Benefits From Cloud & Search Initiatives
Marsh & McLennan (MMC) Strategic Buyouts Aid, Expenses High
Pioneer Natural (PXD) Banks On Oil-Rich Permian Basin Assets
Featured Reports
Automotive & Industrial Growth Aids Texas Instruments (TXN)
Per the Zacks analyst, Texas Instruments is gaining from solid growth in automotive market owing to continued market recovery. Also, strong demand environment in the industrial market is a positive.n
Project Investments, Productivity to Aid Air Products (APD)
While Air Products faces headwinds from higher power and fuel costs, it should gain from investments in high-return industrial gas projects and productivity actions, per the Zacks analyst.n
Alnylam's (ALNY) Marketed Drugs Aid Growth Amid Competition
Per the Zacks analyst, Alnylam's portfolio of approved drugs is witnessing strong uptake since launch, while the pipeline progresses well. However, stiff competition in the target market remains a woe
High Margin Assets & Cost Management Aid Devon Energy (DVN)
Per the Zacks analyst Devon's strong production from its high margins assets and efficient cost management will drive performance over the long run.n
Increased Demand & Expansion Efforts to Aid Hilton (HLT)
Per the Zacks analyst, Hilton is likely to benefit from strong leisure demand and easing of travel restrictions. This and emphasis on luxury portfolio expansion bode well.n
Palo Alto (PANW) Rides on Product Strength, Marketing Effort
Per the Zacks analyst, Palo Alto Networks is gaining from solid contributions of its growth-oriented products including Strata, Prisma and Cortex. Increasing marketing efforts are also positive.n
RPM Benefits From Bolt-on Acquisitions & Cost-Saving Moves
Per the Zacks analyst, RPM's focus on investments in the fastest-growing areas via acquisitions, cost-saving moves and improved pricing are benefiting its top-line.n
New Upgrades
Capacity Expansion, Cost Reduction to Aid Albemarle (ALB)
According to the Zacks analyst, Albemarle should gain from its actions to boost its global lithium derivative capacity. Its cost-saving actions will also support margins.
Tie-Up With Walmart & Expanding Market Aid Green Dot (GDOT)
The Zacks analyst is positive about Green Dot's long-standing relationship with Walmart as its key operating revenue driver. Also, its extending addressable market is a tailwind.
Delek (DK) to Gain from Strong Refining Margins
The Zacks analyst believes that a marked improvement in oil products consumption, plus rising refining profitability, will drive Delek's earnings and cash flows going forward.
New Downgrades
Roper (ROP) Hurt by Supply-Chain Constraints & High Costs
The Zacks analyst is concerned about Roper's operations being hurt by supply-chain woes. High cost of sales, and selling, general and administrative expenses might weigh on the company's bottom line.
Macro Headwinds, Component Shortages Drag Down Seagate (STX)
Per the Zacks analyst, Seagate's performance is likely to be affected by uncertainty prevailing over global macroeconomic conditions along with non-HDD component shortages in the near term.
Soft Gross Margin a Concern for Urban Outfitters (URBN)
Per the Zacks analyst, supply-chain issues are fueling freight costs. Urban Outfitters views 500 bps decline in second-quarter gross margin due to higher markdowns and lower initial product margins.
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Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
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