Thursday, July 8, 2021
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 Amazon.com (AMZN), PepsiCo (PEP) and Chevron (CVX). 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 Amazon have underperformed the broader market in the year-to-date period (+12% vs. +17.6%). The Zacks analyst believes that the company has been gaining from solid Prime momentum on the back of ultra-fast delivery services and a strong content portfolio.
Moreover, a surge in online grocery shopping is another positive. A strong adoption rate of AWS is aiding the company’s cloud dominance, and an expanding AWS services portfolio is helping Amazon gain further momentum among its customers. However, accelerating coronavirus-related expenses remain a major risk for the company’s margin expansion.
(You can read the full research report on Amazon here >>>)
PepsiCo’s shares have gained +6.8% over the last six months against the Zacks Soft Drinks Beverages industry’s gain of +8.5%. The Zacks analyst believes that despite the pandemic, PepsiCo remains financially sound to run its business and meet obligations. As of Mar 20, 2021, the company’s long-term debt declined 3.4% sequentially to $38,991 million.
Also, the robust fourth quarter results were driven by resilience and strength in the global snacks/foods business, along with accelerated growth in the beverage category. However, it witnessed soft margins on international acquisitions and unforeseen weather-related costs in the United States in February. Adverse currency rates remain a headwind.
(You can read the full research report on PepsiCo here >>>)
Shares of Chevron have gained +1.3% in the past three months against the Zacks Integrated Oil industry industry’s gain of +2.2%. The Zacks analyst believes that Chevron’s acquisition of Noble Energy for $5 billion, has expanded its presence in the DJ Basin as well as the Permian Basin.
While the company has struggled with depressed demand, it recently hiked its dividend by 3.9% in a shareholder-friendly move. However, last year’s commodity price crash forced it to cut capital spending and suspend buybacks. Moreover, its reserve replacement ratio of 74% indicates its inability to add reserves to replace the amount of oil and gas produced.
(You can read the full research report on Chevron here >>>)
Other noteworthy reports we are featuring today include American Tower (AMT), CME Group (CME) and Fiserv (FISV).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Mark Vickery
Senior Editor
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
Amazon (AMZN) Banks on Prime Momentum & Growing AWS Adoption
Momentum in PepsiCo’s (PEP) Snacking Business to Aid Growth
Chevron (CVX) Boosts Permian Position with Noble Buy
Featured Reports
American Tower (AMT) to Gain From 4G LTE & 5G Investments
Per the Zacks analyst, American Tower will benefit from increased investments by wireless carriers in 4G LTE and 5G networks, though stiff competition and tenant concentration are concerning.
CME Group (CME) Banks on Improving Top Line, Expenses Hurt
Per the Zacks analyst, its strong revenues driven by organic growth, steady market position, and diverse product lines have led to significant growth.
Fiserv (FISV) Gains From Ondot Systems Buyout, Debt Woes Ail
Per the Zacks analyst, the Ondot Systems acquisition strengthens Fiserv’s digital capabilities and competitive position.
Investment on Clean Assets & Infrastucture Aid Dominion (D)
Per the Zacks analyst, Dominion’s planned investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.
Buyouts, Investment in Technology Aid Global Payments (GPN)
Per the Zacks analyst, numerous acquisitions, alliances, partnerships, and joint ventures are aiding its growth. Investment in technology boosts its payment technology and software solutions.
Veeva Systems (VEEV) Rides on a Robust Product Portfolio
The Zacks analyst is upbeat about Veeva Systems’ solid product portfolio, which Veeva Vault and Veeva CRM among others.
Cost Management, Permian Basin Focus Aid Occidental (OXY)
Per the Zacks analyst, Occidental’s acquisition of Anadarko expanded its operation in the resource-rich Permian Basin and efficient cost management will drive its performance over the long run.
New Upgrades
Square (SQ) Banks on Solid Cash App Adoption, Bitcoin Growth
Per the Zacks analyst, Square is benefiting from strong Cash App engagement and its growing active customer base. Further, growing bitcoin revenues owing to robust Cash App are contributing well.
Exploration Progress, Debt Reduction to Aid Freeport (FCX)
According to the Zacks analyst, Freeport will benefit from its progress in exploration activities to expand production capacity and efforts to deleverage its balance sheet.
Business Restructuring Plans Support CIT Group (CIT) Profits
Per the Zacks analyst, CIT Group’s initiatives to restructure and streamline business operations, solid balance sheet position, and efforts to diversify revenues will continue to support financials.
New Downgrades
Weakness in Foodservice Unit a Woe For Post Holdings (POST)
Per the Zacks analyst, lower demand from foodservice customers amid COVID-19 is a woe for Post Holdings. Sales in the Foodservice segment declined 2.4% year over year in the fiscal second-quarter.
Ionis (IONS) Faces Stiff Competition for Spinraza Royalties
The Zacks analyst points out that the competitive environment for Ionis’ products, mainly Spinraza is intense, which can hurt the royalties it receives on the drug from Biogen.
AZUL Grapples With Coronavirus-Led Weak Air-Travel Demand
The Zacks analyst is concerned about coronavirus-led suppressed air-travel demand and devaluation of the Brazilian real against the U.S. dollar weighing on AZUL’s operations.
PepsiCo, Inc. (PEP): Free Stock Analysis Report
Fiserv, Inc. (FISV): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
CME Group Inc. (CME): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
American Tower Corporation (AMT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
