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Friday, March 8, 2024
Zacks Research Daily presents the best research from our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including Chevron Inc. (CVX), Verizon Communications Inc. (VZ), and Eaton Inc. plc (ETN). These research reports are culled from approximately 70 reports published today by our analyst team.
you can All of today’s research reports can be found here >>>
shares of chevron Over the past year, it has underperformed the Zacks Oil & Gas – Composite – International industry (-4.6% vs. +0.9%). Zacks analysts believe that Chevron appears to be a risky bet given its many near-term challenges. Over the past year, the energy giant’s stock has fallen more than 10%, compared with a 21% rise in the S&P 500.
Very large companies with 60% liquid-weighted production are highly exposed to oil price fluctuations. While reserve replacement rates remain low, there are also concerns about lower profits in downstream sectors due to the impact of lower margins, indicating challenges in replenishing produced energy.
Additionally, costs as a percentage of revenue are increasing. Finally, Chevron has been slower to jump on the clean energy bandwagon than its European peers. Given these factors, the company is unlikely to regain support any time soon. This requires a bearish stance on Chevron.
(you can Click here to read the full research report on Chevron >>>)
verizon’s Over the past year, the stock has outperformed the Zacks Wireless National industry (+13.3% vs. +7.5%). The company reported strong fourth-quarter 2023 results, with revenue and bottom line exceeding the respective Zacks Consensus Estimates, driven by significant 5G adoption and wireless traction.
The company offers a variety of pricing combinations for both wireless and home broadband plans, leading to robust customer growth. Focusing on emerging growth services such as cloud, security, and professional services can yield long-term benefits. Its mmWave footprint delivers a revolutionary experience for the densest parts of your network.
However, the decline in wireline and wireless equipment revenues is a major concern. Huge promotional costs and favorable discounts to expand the customer base are putting pressure on profits. Headwinds include significant capital expenditures for nationwide network upgrades and deployment of fiber assets. The lackluster outlook for 2024 is somewhat worrying.
(you can Click here for the full research report on Verizon >>>)
shares of Eaton Over the past year, Zacks Manufacturing – Electronics has outperformed the industry (+72.1% vs. +41.9%). Continuous research and development enables the company to develop new products that provide efficient power management solutions.
It will benefit from improved end market conditions, increased demand from new AI data centers, and contributions from its organic assets. Eaton is expanding through acquisitions, and its growing backlog shows demand for its products. The company’s strategy of manufacturing locally in its end markets helps reduce costs.
However, because Eaton operates globally, it is exposed to unpredictable currency translations, cybersecurity threats, changes in tax rates, security breaches, etc. that could affect its business. there is. Raw material shortages or supplier bankruptcy could impact production and operations.
(you can Click here to read the full research report on Eaton >>>)
Other notable reports featured today include NVIDIA Corp. (NVDA), Canadian Pacific Kansas City Ltd. (CP), and Ford Motor Co. (F).
Mark Vickery
senior editor
Note: Sheraz Mian is the head of Zacks Equity Research and a respected total returns expert. He is frequently quoted in print and electronic media and publishes a weekly magazine. Performance trends and Earnings Preview I will report. If you would like to receive email notifications every time Sheraz publishes a new article, Click here>>>
Today’s must-read
Chevron (CVX) gains foothold in Guyana with Hess Bye
Verizon (VZ) steadily adds subscribers and shows 5G traction
New product development, broad market reach Aton (ETN)
Featured reports
Canadian Pacific KC (CP) starts paying dividends amid rising costs
Zacks analysts are impressed with the company’s efforts to reward shareholders. However, rising operating costs are a headwind.
Ford’s (F)Pro business unit will be a key growth driver
Ford Pro, Ford’s commercial division, will boost earnings in 2024 on strong mix and sales volumes, according to Zacks analysts. The segment’s pre-tax profit is expected to increase 18.5% year-on-year at the midpoint of the outlook.
Interest rate hikes and business transformation to support BNY Mellon (BK)
Global influences and rising interest rates will continue to support BNY Mellon, according to Zacks analysts. Business transformation programs will also increase market share, leading to higher profit margins.
Acceleration of non-trade revenue-based aid NASDAQ (NDAQ)
According to Zacks analysts, Nasdaq plans to grow with a focus on its market technology and information services businesses. However, there may be concerns that increased expenses will weigh on profit expansion.
Verisk (VRSK) gains from Opta acquisition, but operational risks remain
According to Zacks analysts, the Opta acquisition is expected to expand Verisk’s footprint in the Canadian market. Potential security breaches remain a concern.
New Customer, Robust Omnipod 5 Sales Aid Insulet (PODD)
Zacks analysts are bullish on Insulet’s solid new customer acquisition and volume growth through its U.S. pharmacy channel. It’s also encouraging that Omnipod 5 is seeing strong global adoption.
Strategic acquisition to support Lisure (LAD), mounting debt woes
Zacks analysts are optimistic that Lithia’s strategic acquisition will help the auto retailer expand its market share and strengthen its portfolio. However, rising debt levels remain a concern.
new upgrade
NVIDIA (NVDA) leverages strong GPU adoption and partnerships
According to Zacks analysts, the rapid adoption of NVIDIA’s GPUs in the gaming and data center markets is a key growth driver. Furthermore, partnerships with companies such as Arrow, Baidu, and Daimler are also a tailwind.
NetApp (NTAP) benefits from growing demand for hybrid cloud
According to Zacks analysts, NetApp’s results are driven by continued strength in its Hybrid Cloud business segment. The company’s frequent product launches are also a tailwind.
Renal cancer treatment drug Cabometyx drives sales of Exelixis (EXEL)
Zacks analysts say sales of Cabometyx, its lead kidney cancer drug, are driving the company’s earnings and helping it maintain market share despite stiff competition in the market.
new downgrade
Cactus (WHD) addresses conservative customer spending
According to Zacks analysts, Cactus faces challenges as conservative customer spending impacts demand for its services. Investor demand for higher returns increases cash flow concerns.
Aarons (AAN) witnessed a slump in its namesake segment
Aaron’s namesake segment has seen a decline in lease portfolio size and lease renewal rates, according to Zacks analysts. Aaron’s business unit sales decreased 8.7% year-over-year in the fourth quarter.
Strong free cash flow generation supports WESCO (WCC) outlook
According to Zacks analysts, WESCO benefits from its ability to generate solid free cash flow, which helps it capitalize on market-beating growth.
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Ford Motor Company (F): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Verizon Communications Inc. (VZ): Free Stock Analysis Report
Eaton Corporation, PLC (ETN): Free stock analysis report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Canadian Pacific Kansas City Limited (CP): Free Stock Analysis Report
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