Top Research Daily for Chevron, United Technologies & Charter Communications

Wednesday, December 27, 2017

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 (CVX), United Technologies (UTX) and Charter Communications (CHTR). 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 >>>

Buy-rated Chevron’s shares have risen +6.9% in the past year, underperforming the Zacks Integrated Oil industry's +7.4%, while larger rival ExxonMobil has seen its scrip go down -7% over the same time period. The second-largest U.S. oil producer has been a beneficiary of the recovery in commodity prices and robust refining profits. More importantly, Chevron was able to cover its investment and payouts with cash from operations in the most recent quarter - something investors really want right now. Moreover, with increasing amounts of capital spending devoted to the lucrative Permian basin over the coming years, production from the region is expected to be strong. Consequently, the Zacks analyst thinks Chevron offers substantial upside potential from the current price levels and views it as a preferred energy play to own now.

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

Shares of United Technologies have outperformed the Zacks Conglomerates sector in the year-to-date period (the stock is up +16% vs. the -4.6% decline for the sector). United Technologies remains focused on four key priorities: flawless execution, innovation for growth, structural cost reduction and disciplined capital allocation. The acquisition of Rockwell Collins is further expected to offer a bigger clout in the industry and increase its bargaining power as the combined entity would emerge as one of the largest global aircraft equipment manufacturers. Management further increased its guidance for 2017 on healthy growth dynamics. However, United Technologies is exposed to market price volatility and availability risks related to raw materials, which hamper its ability to meet delivery schedules and increase operating costs. Fluctuations in foreign currency exchange rates affect its net investment in foreign subsidiaries and cause instability in cash flows. The company is also susceptible to high operating risks following the Brexit referendum.

(You can read the full research report on United Technologies here >>>).

Charter Communications’ shares have outperformed the Zacks Cable TV industry over the past three months (+1.7% vs. -2.4%). Charter plans to launch its wireless services in 2018. The company also plans to execute field trials for 5G wireless network. Charter and Altice USA have recently reached an agreement to broadcast their respective regional cable news networks. Charter and Viacom announced a multi-year renewal and expansion of their distribution relationship for the co-production of original content and collaboration around advanced advertising. Charter recently settled a pending year-long content licensing dispute with Univision Communications. However, the Zacks analyst remains concerned about the company’s operations in a saturated and competitive multi-channel U.S. video market. Charter continues to lose video customers due to cord-cutting. Further, the high debt level is a potential hazard.

(You can read the full research report on Charter Communications here >>>).

Other noteworthy reports we are featuring today include Walgreens (WBA), Marsh & McLennan (MMC) and T. Rowe Price (TROW).

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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

Cash Flow, Higher Permian Spending to Boost Chevron (CVX)

Currency Woes Mar United Technologies' (UTX) Inorganic Growth

Mobile Venture Aids Charter (CHTR), Pay-TV Remains a Concern

Featured Reports

IMAX Eyes Global Expansion Despite China Weakness

The Zacks analyst likes the multiple deals inked by IMAX to expand its presence. Efforts to check costs also raise optimism. IMAX's disappointing run at the Chinese box-office raises concerns.

Irrigation Business Aids Lindsay (LNN), Commodity Prices Ail

Per the Zacks analyst, Lindsay will gain from growth in the U.S. irrigation business led by upbeat sentiment towards investment in yield-enhancing equipment.

Cintas' (CTAS) Inorganic Growth Marred by Macroeconomic Woes

Per the Zacks analyst, G&K Services' buyout has expanded Cintas' customer profile and augmented revenues although volatility in raw material prices and third-party supply constraints remain headwinds.

On-time Renewals, Services Strength Benefits Red Hat (RHT)

Per the Zacks analyst, Red Hat benefits from improving linearity driven by on-time renewal of deals.

Hershey (HSY) Combats Sluggish Sales With Cost-Saving Plans

The Zacks analyst views Hershey's cost cutting initiatives and productivity investments as effective hedges for a weak top-line performance.

Debt-free Position & Revenue Growth Aid T. Rowe Price (TROW)

Per the Zacks analyst, debt free position with substantial liquidity has assisted in strengthening T. Rowe Price's capital leverage.

Twitter (TWTR) Drives on Improving User Engagement Levels

Per the Zacks analyst, Twitter's focus on making tweeting easier for people and more expressive is helping in improving engagement levels.

New Upgrades

Rite Aid Store Buy, Cost Cut Plan to Aid Walgreens (WBA)

The Zacks analyst is bullish on the synergy benefits to be derived from Walgreens' purchase of a number of Rite Aid stores. The company may also gain from the multi-faceted cost-reduction initiative.

Winnebago (WGO) Rides on Continued Growth of Towable Unit

Per the Zacks analyst, higher unit sales, a positive product mix and addition of Grand Design RV have enabled Winnebago to witness sustained growth of its towable segment.

Marsh & McLennan (MMC) Rides on Accretive Acquisitions

The Zacks analyst views favorably numerous purchases that has enabled the company to enter new geographies, foray into new businesses & develop new segments, leading to top line growth.

New Downgrades

Escalating Expenses Continue to Hurt AXIS Capital (AXS)

Per the Zacks analyst, rising operating expenses, which in turn will restrict operating margin expansion, will continue to hurt AXIS Capital's overall growth.

CNX Resources (CNX) to Face Challenges in Reserve Additions

The Zacks analyst expects CNX Resources to face very tough competition from existing major natural gas companies as it starts its journey as an oil and natural gas company.

Mattel (MAT) Grapples with Weakness in Girls & Boys Brands

The Zacks analyst notes that continual sluggish performance of Mattel Girls & Boys Brands is hurting Mattel's overall sales.

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Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
 
United Technologies Corporation (UTX) : Free Stock Analysis Report
 
T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report
 
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
 
Chevron Corporation (CVX) : Free Stock Analysis Report
 
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
 
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