Top Stock Reports for ConocoPhillips, Applied Materials & Airbnb
Friday, July 14, 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 ConocoPhillips (COP), Applied Materials, Inc. (AMAT) and Airbnb, Inc. (ABNB). 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 >>>
ConocoPhillips shares have outperformed the Zacks Oil and Gas - Integrated - United States industry over the past year (+40.1% vs. +28.4%). The company holds the bulk of acres in the unconventional plays of Eagle Ford shale, Permian Basin and Bakken shale. Significant opportunities are there for the company in the Bakken Shale, where it owns about 750 undrilled locations that could provide access to huge reserves.
ConocoPhillips projects its 2023 production at 1.78-1.8 MMBoe/d, suggesting an increase from 1.74 MMBoe/d last year. COP’s balance sheet is significantly less leveraged than the industry it belongs to. Additionally, the company announced its 2023 planned return of capital to shareholders of $11 billion.
However, ConocoPhillips is highly exposed to oil price fluctuations, which makes things challenging for the company. Also, the company been generating lower dividend yield than the industry for the past few years. As such, the stock warrants a cautious stance.
Shares of Applied Materials have outperformed the Zacks Semiconductor Equipment - Wafer Fabrication industry over the past six months (+30.3% vs. +22.2%). The company is benefiting from strong momentum across Semiconductor Systems and Applied Global Services. Further, solid demand for silicon in several applications across various markets remains a tailwind.
Increased customer spending in foundry and logic on the back of rising need for specialty nodes in automotive, power, 5G rollout, IoT, communications and image sensor markets, is a major positive. Strong momentum in conductor etches is benefiting the company’s position in DRAM and NAND.
However, sluggishness in its Display and Adjacent Market segment remains a concern. Softness in the segment is expected to continue in the days ahead. Further, mounting expenses and rising competition pose a risk to the company’s market position.
(You can read the full research report on Applied Materials here >>>)
Airbnb shares have outperformed the Zacks Internet - Content industry over the past year (+48.3% vs. +34.1%) as well as the Zacks Hotels industry (+48.3% vs. +26.9%). The company is benefiting from a strong demand in the travel industry. Also, continued strength in Nights & Experiences Booked across all regions, especially in the Asia-pacific region remains a tailwind. Moreover, increasing gross nights booked in high-density urban areas is a major positive.
Further, strengthening guest demand for non-urban nights is driving active listings for non-urban destinations. Additionally, recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions is continuously propelling the top-line growth.
However, uncertainties related to the ongoing coronavirus pandemic remain overhangs. Further, macroeconomic headwinds and rising competition in the online travel booking market continue to remain concerns.
(You can read the full research report on Airbnb here >>>)
Other noteworthy reports we are featuring today include Micron Technology, Inc. (MU), Freeport-McMoRan Inc. (FCX) and Constellation Brands, Inc. (STZ).
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
ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets
Applied Materials (AMAT) Rides on Foundry & Logic Spending
Strong Demand for Travel Benefits Airbnb's (ABNB) Prospects
Featured Reports
Rising High-Value Solution Mix Aids Micron Technology (MU)
Per the Zacks analyst, Micron's rising mix of high-value solutions and 5G adoption in IoT devices is expected to partially offset the negative impact of declining memory chip demand from PC vendors.
Exploration Progress, Debt Reduction to Aid Freeport (FCX)
Per the Zacks analyst, Freeport will gain from its progress in exploration activities to expand production capacity and efforts to deleverage balance sheet amid headwind from higher costs.
Organic Growth Supports U.S. Bancorp (USB) Amid High Cost
Per the Zacks analyst, U.S. Bancorp's organic growth is driven by solid loan and deposit balances. Its inorganic growth efforts support revenues. Yet, high costs and loan concentration are concern.
Beer Business to Boost Constellation Brands' (STZ) Feat
Per the Zacks analyst, Constellation Brands is gaining from solid demand in beer business, particularly Modelo Especial and Corona Extra. Sales likely to grow 7-9% for the beer segment in fiscal 2024.
Las Vegas Sands (LVS) Banks on Macao Business to Drive Growth
Per the Zacks analyst, Las Vegas Sands is likely to benefit from revenue diversification efforts and strategic investments in Macao region. Also, focus on non-gaming segments bode well.
Paychex (PAYX) Gains From Segmental Growth, Rising Costs Ail
Per the Zacks analyst, growing service revenue driven by impressive performance from Management Solutions and PEO and Insurance Solutions aids Paychex. Rising expenses remain a concern.
Biogen's (BIIB) Potential New Drugs Can Revive Growth
The Zacks analyst expects Biogen's potential new product launches, Leqembi in Alzheimer's disease, tofersen in ALS and zuranolone in depression, can help revive growth
New Upgrades
Meritor Buyout & Investor Friendly Moves Fuel Cummins (CMI)
The acquisition of Meritor has enhanced Cummins' Components segment and is set to offer financial, commercial and operational synergies. The Zacks analyst also likes Cummins' hot dividend streak.
Greater User Engagement, New Ad Tools Buoy Pinterest (PINS)
Per the Zacks analyst, Pinterest is likely to benefit from a greater engagement on the platform and strong emphasis on developing new ad tools and formats that unlock new monetization opportunities.
Programs Aid Hexcel Corporation (HXL), Inflation Impacts Woe
Per the Zacks analyst, impressive set of programs tend to boost Hexcel's long-term growth prospects. Yet supply chains, and inflationary pressures still remain a challenge for the stock
New Downgrades
Magnolia Oil & Gas (MGY) Hurt by Higher Expenses
The Zacks analyst believes that the jump in operating expenses experienced by Magnolia Oil & Gas might pressure its earnings and cash flows.
Virtu Financial (VIRT) Hurt by Lower Commission & High Costs
Per the Zacks Analyst, Virtu Financial's declining commissions are affecting its top line. Also, elevated expenses are putting pressure on its margins.
Rising Costs and Contraction of Margins Ail Walgreens (WBA)
The Zacks analyst is worried about increased reimbursement pressure and generic drug cost inflation have been hampering Walgreens' margin on a significant level. Stiff rivalry remains a concern.
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ConocoPhillips (COP) : Free Stock Analysis Report
Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
Constellation Brands Inc (STZ) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
