Yahoo Finance Top Analyst Reports for Exxon Mobil, Philip Morris & General Electric
Tuesday, October 31, 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 ExxonMobil Corp. (XOM), Philip Morris International Inc. (PM) and General Electric Co. (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 ExxonMobil have underperformed the Zacks Oil and Gas - Integrated - International industry over the year-to-date period (-1.6% vs. -0.4%). The company demonstrates a higher level of operational volatility than the broader market. The firm’s dividend yield is lower than the composite stocks belonging to the industry. Thus, ExxonMobil is lagging its peers when it comes to shareholder returns.
Nevertheless, ExxonMobil's bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play.
In Stabroek Block, located off the coast of Guyana, ExxonMobil has made many major discoveries that significantly improve its production outlook. The advantaged growth projects of Guyana have lower greenhouse gas intensity than most of the oil and gas-producing resources across the globe.
(You can read the full research report on Exxon Mobil here >>>)
Philip Morris shares have outperformed the Zacks Tobacco industry over the past year (+2.8% vs. -3.6%). The company has been gaining from its pricing power. Higher pricing variance was an upside to the company’s performance in the second quarter of 2023 and is likely to remain a driver.
A focus on reduced-risk products, especially IQOS, has been working well for the company, which is witnessing a continued product mix shift from cigarettes to smoke-free products. These upsides are likely to boost organic revenues in the full-year 2023.
However, Philip Morris has been battling cost-related headwinds. The company expects to make additional growth-oriented investments in 2023, which may crimp near-term margins. Also, soft cigarette shipment volumes and volatile currency movements have been concerns.
(You can read the full research report on Philip Morris here >>>)
Shares of General Electric have outperformed the Zacks Diversified Operations industry over the past year (+78.3% vs. -5.5%). The company’s strong performance of the Aerospace unit, driven by commercial aerospace strength, significant growth in LEAP engine deliveries and higher defense engine orders, is aiding General Electric’s growth.
With strength in GE Gas Power services and growth at Grid business and Onshore Wind in North America, signs of improvement in GE Vernova (the combined operations of GE Power and Renewable) hold promise. Due to these tailwinds, the company has raised its 2023 guidance. Amid these positives, shares of General Electric have outperformed its industry in the past six months.
However, supply chain disruptions in the defense market continue to take a toll on the company’s operations. Inflationary pressure poses a threat to General Electric’s bottom line. Foreign currency challenges and lower aeroderivative shipments are other concerns for GE.
(You can read the full research report on General Electric here >>>)
Other noteworthy reports we are featuring today include BlackRock, Inc. (BLK), Arista Networks, Inc. (ANET) and Atlassian Corp. (TEAM).
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
ExxonMobil (XOM) Banks on Offshore Guyana Discoveries
Philip Morris' (PM) Pricing Aids Amid Low Cigarette Volumes
Aerospace Unit Aids General Electric (GE) Amid Cost Woes
Featured Reports
Buyouts, Robust AUM Growth Aid BlackRock (BLK), Costs Ail
Per the Zacks analyst, BlackRock's acquisition efforts along with the continued rise in its assets under management balance will aid the top line. Higher administration costs will likely hurt profits.
Arista (ANET) Rides on Cloud Demand, Output Optimization
Per the Zacks analyst, Arista is increasingly gaining traction in 200- and 400-gig high-performance switching products, while focus on optimization of manufacturing output has helped to boost margins.
Atlassian (TEAM) Gains On Rising Hybrid Working Tool Demand
Per the Zacks analyst, Atlassian is benefiting from the rising demand for remote working tools amid the hybrid work trend and accelerated digital transformation.
Investments Aid Sempra (SRE), Severe Weather Impact Woes
Per the Zacks analyst, systematic investments boost Sempra's infrastructure. Yet, its operations are subject to severe weather which can materially increase costs, and impact its earnings.
Strong Product Portfolio Buoys Optimism for Baxter (BAX)
Per the Zacks analysts, Baxter International is well poised for growth backed by a strong product portfolio. Introduction of new therapies and products likely to drive the topline growth.
Mirati (MRTX) Progress With Cancer Pipeline Encouraging
The Zacks Analyst is encouraged by data from Mirati's label expansion studies on Krazati in different stages of NSCLC. Based on these studies, Mirati received a buyout offer from Bristol Myers.
SkyWest (SKYW) Prospects Aided by Fleet-Upgrade Activities
The Zacks analyst is impressed with the company's actions to modernize its fleet. Efforts to reward its shareholders through buybacks also bode well.
New Upgrades
Strategic Efforts, Lower Costs Aid Hartford Financial (HIG)
Per the Zacks analyst, Hartford Financial's strategic initiatives, like vending of non-core businesses to focus on its U.S. operations, bode well. Lower expenses might aid its margins in the future.
Deckers (DECK) Gains From Solid Demand With Strength in DTC
Per the Zacks analyst, the impressive performance of Deckers Outdoor's direct-to-consumer (DTC) unit, fueled by robust demand for HOKA and UGG brands, will continue to lend momentum to it.
Pure Storage (PSTG) Benefits from Robust Product Portfolio
Per the Zacks analyst, Pure Storage is gaining from strong uptake of the FlashBlade portfolio coupled with robust Evergreen//One subscription sales. The proliferation of generative AI bodes well.
New Downgrades
Price Competition & Reduced Customer Activity Ail RPC (RES)
Per the Zacks analysts, RPC is grappling with challenges in service demand due to decreased investments in the North American land market. Declining customer activity adds to the concern.
Winnebago (WGO) to be Hurt by Retail Woes, Dealer Reluctance
Winnebago anticipates a formidable first half of fiscal 2024 due to ongoing retail market dynamics and dealers' hesitance to boost inventory, making the Zacks analyst bearish on the stock.
Dismal Segmental Performance & Inflation Hurt Hasbro (HAS)
Per the Zacks analyst, tepid performances of Consumer Products and Entertainment segments hurt Hasbro's growth prospects. Also, inflationary environment adds to the downtrend.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Electric Company (GE) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report
