Top Analyst Reports for Chevron, Coca-Cola & General Electric

·5-min read

Tuesday, March 28, 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 Chevron Corporation (CVX), The Coca-Cola Company (KO) and General Electric Company (GE). 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 Chevron lost -4% of their value over the past year against the broader market's 14.2% pullback. The company is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up.

America’s No. 2 energy firm’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin. As a reflection of these positives, we saw CVX’s EPS jump 132% in 2022.

However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially. The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of energy produced.

(You can read the full research report on Chevron here >>>)

Shares of Coca-Cola have gained +8.4% over the past six months against the Zacks Beverages - Soft drinks industry’s gain of +13.3%. The company’s results benefited from the continued momentum in its business. Sales gained from revenue growth across its operating segments, aided by an improved price/mix and a rise in concentrate sales. It is poised to gain from innovations and accelerating digital investments.

It provided an upbeat guidance for 2023. However, shares of Coca-Cola lagged the industry year to date. Pressures from higher supply chain costs, including transportation and input costs hurt gross margin. Higher marketing spends and currency headwinds are also concerning.

(You can read the full research report on Coca-Cola here >>>)

General Electric’s shares have outperformed the Zacks Diversified Operations industry over the past six months (+48.7% vs. +5.0%). The company is riding on the strong performance of the aerospace segment, driven by continued recovery in the commercial market and robust consumer demand is aiding General Electric’s growth.

Rebound in the Power segment after months of softness is encouraging. Investments in innovation and productivity improvement should fuel the company’s growth. Also, its shareholder-friendly policies are praiseworthy.

However, supply-chain disruptions, including labor and material shortages and high logistics costs, are weighing on General Electric’s performance. Raw material cost inflation poses a threat to the company’s bottom-line performance. Weakness in the Renewable Energy segment due to lower volumes is concerning. Foreign currency headwinds are hurting the company’s top line.

(You can read the full research report on General Electric here >>>)

Other noteworthy reports we are featuring today include Oracle Corporation (ORCL), CME Group Inc. (CME) and Cadence Design Systems, Inc. (CDNS).

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

Chevron (CVX) to Gain from Massive Permian Acreage

Coca-Cola's (KO) Digital Investments to Aid the Top Line

Aerospace Segment Aids General Electric (GE) Amid Forex Woes

Featured Reports

Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships
Per the Zacks analyst, Oracle is benefiting from solid adoption of its cloud infrastructure solutions. Also, partnership with Accenture is helping the company rapidly expand its cloud-based clientele.

Solid Top Line Aids CME Group (CME), Elevated Expenses Hurt
Per the Zacks analyst, CME's strong revenues driven by organic growth, strong market position and diverse product lines have led to significant growth. However, escalating expenses remain a concern.

Cadence (CDNS) Benefits from Product Portfolio & Acquisitions
Per the Zacks analyst, Cadence's performance is gaining from robust demand for the company's diversified product portfolio. Synergies from recent acquisitions also bode well.

Robust Product Sales Aids West Pharmaceuticals' (WST) Prospects
Per the Zacks analyst, continued strength in West Pharmaceuticals' proprietary products segment will drive prospects amid uncertainty in global economy which includes recession or slow economic growth

Healthy Demand, Portfolio Strength to Aid Monolithic Power (MPWR)
Per the Zacks analyst, healthy demand trends in 5G, automotive, storage and cloud computing domains along with investments for infrastructure upgrade are likely to yield benefits for Monolithic Power.

Loan Growth Aids Bank of Hawaii (BOH), Increasing Costs a Woe
Per Zacks analyst, Bank of Hawaii's rising loans and deposits balances is likely to strengthen the company's balance sheet. Yet, rising costs keep bottom-line under pressure.

Qinlock Boosts Deciphera (DCPH), Competition A Woe
Per the Zacks Analyst, Deciphera is expected to continue to witness growth in revenue driven by Qinlock sales. However, overdependence on Qinlock and stiff competition remain a woe.

New Upgrades

Avis Budget (CAR) Benefits From Connected Vehicles Fleet
Per the Zacks analyst, Avis Budget's connected car program enables customers to manage their entire rental through the Avis mobile app, and allows streamlining of operations and cost reduction.

Loan Growth, Acquisitions Support F.N.B. Corp (FNB) Top Line
Per the Zacks analyst, supported by robust loan balances and strategic acquisitions, F.N.B. Corp is poised for top-line growth. Its technological advancements and capital deployments are impressive.

Solid Demand, Margin Expansion Efforts to Aid O-I Glass (OI)
Per the Zacks analyst, O-I Glass will gain from the growing consumer preference for glass as the healthy, premium and sustainable packaging option. Its margin-expansion initiative will aid earnings.

New Downgrades

Rising Costs, Soft Cash Flows Hurt Fidelity National (FIS)
Per the Zacks analyst, a rise in expenses due to higher selling, general and administrative expenses might dent the company's margins. A decline in free cash flows remains a concern.

Housing Market Softness & High Inflation Hurt Leggett (LEG)
As per the Zacks analyst, persisting softness in housing market, high inflationary pressures, increased input, labor and freight costs, and supply chain disruptions impact Leggett's growth.

Children's Place (PLCE) Soft Margin Trend is a Concern
Per the Zacks analysts, Children's Place (PLCE) has been witnessing weak margin trends for a while. Increased supply chain costs and lower merchandise margins are weighing on the same.

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General Electric Company (GE) : Free Stock Analysis Report

CME Group Inc. (CME) : Free Stock Analysis Report

Chevron Corporation (CVX) : Free Stock Analysis Report

CocaCola Company (The) (KO) : Free Stock Analysis Report

Oracle Corporation (ORCL) : Free Stock Analysis Report

Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report

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