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Top Research Reports for Walmart, Toyota Motor & Schlumberger

Thursday, December 1, 2022

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 Walmart Inc. (WMT), Toyota Motor Corp. (TM) and Schlumberger Ltd. (SLB). 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 >>>

Walmart's shares are in line with the Zacks Retail - Supermarkets industry over the past year (+12.5% vs. +12.4%). The company has been benefiting from its robust omnichannel operations due to its efforts to enhance both store and online experience. Walmart has been particularly gaining from its efforts to boost delivery services through acquisitions and partnerships.

The company’s U.S. comp sales continued to benefit from an increased market share in grocery in the third quarter of fiscal 2023, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and increased year over year. A robust third-quarter show encouraged management to raise its overall guidance for fiscal 2023.

However, its consolidated operating income and earnings per share view still suggest a decline from the year-ago period figures. The company is encountering cost inflation, and expects it to remain elevated.

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

Shares of Toyota Motors have declined -19.4% over the past year against the Zacks Automotive - Foreign industry’s decline of -40.1%. The company is facing supply-chain disruptions, logistical challenges and manufacturing inefficiencies are likely to dent profits. Operating income is projected to decline 19.8% year over year. High capex and R&D expenses are also likely to dent cash flows. Also, Toyota's rising debt pile raises concerns. As such, investors are advised to wait for a better entry point.

However, the Japan-based carmaker is one of the world’s leading automakers, with an array of brands, including Toyota, Lexus and Scion, offering solid prospects. Toyota’s electrification push is a major tailwind.

It is deepening its focus on manufacturing electric and fuel-cell vehicles, which will bolster the company’s product competitiveness. The company's raised sales view for fiscal 2023 sparked optimism. Investor-friendly moves also instill confidence.

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

Schlumberger’s shares have outperformed the Zacks Oil and Gas - Field Services industry over the past year (+75.9% vs. +20.1%). The company is the single largest oilfield services player, with a presence in every energy market across the globe. Being the leading provider of technology for complex oilfields, the company is well-poised to take up new offshore projects in international markets.

The significant increase in oil prices is aiding its overall business. Increased participation in growth of drilling and completion activities across the world brightened the company’s outlook. Also, it boasts of becoming the first company in the energy service industry to add Scope 3 emissions ambition in the net-zero emission target.  

However, the company’s balance sheet has massive debt exposure compared with the composite stocks in the industry. Also, the aggressive capital spending budget remains a headwind for the company. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include Lululemon Athletica Inc. (LULU), DexCom, Inc. (DXCM), and Enphase Energy, Inc. (ENPH).

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

Walmart (WMT) Benefits from Impressive E-Commerce Operations

Electrification Drive Aids Toyota Motor (TM) Amid Inflation

Schlumberger (SLB) to Gain on Rising Oilfield Service Demand

Featured Reports

Strong Product Portfolio Aids DexCom (DXCM) Fight Competition
Per the Zacks analyst, DexCom strong product portfolio targeting the large and growing diabetes market is helping the company fight intensifying competition with entry new competing products.

Solid Adoption of ESG Solution Aids MSCI's (MSCI) Progress
Per the Zacks analyst, MSCI is benefiting from strong demand for custom and factor index modules and the increasing adoption of the ESG solution into the investment process.

Atlassian (TEAM) Gains On Rising Remote Working Tool Demand
Per the Zacks analyst, Atlassian is benefiting from the COVID-19 pandemic-led work-from-home wave, which is spurring demand for offsite-working software and hardware tools.

Old Dominion (ODFL) Rides on Dividends & Buyback, Expenses Ail
The Zacks analyst likes the shareholder-friendly measures adopted by Old Dominion. However, rising operating expenses are concerning as they are likely to keep the bottom line under pressure.

Willis Towers (WTW) Rides on Buyouts & Strong Balance Sheet
Per the Zacks analyst, a number of buyouts have helped Willis Towers expand its geographical footprint and ramp up product portfolio. Its healthy balance sheet enables it to fulfill debt obligations.

Global Reach Buyout Benefits FLEETCOR (FLT), Liquidity Low
Per the Zacks analyst, Global Reach buyout strengthens FLEETCOR's global position as a non-bank cross-border provider by increasing its scale of payments. However, low current ratio is a headwind.

United Therapeutics (UTHR) Dependence on PAH Drugs A Woe
United Therapeutics is a leader in treating pulmonary arterial hypertension (PAH) and markets four drugs. However the lack of product and pipeline diversification beyond PAH concerns the Zacks Analyst

New Upgrades

lululemon (LULU) Tracks Well with E-commerce Expansion Plans
Per the Zacks analyst, lululemon is heavily investing in e-commerce capabilities like developing sites, transactional omni functionality and fulfilment options to capture the growing online demand.

Expanding Solar Market to Boost Enphase Energy (ENPH) Growth
Per the Zacks analyst, the expanding solar market that has set the stage for the solar microinverter market's boom tends to benefit Enphase as it remains a leading U.S. manufacturer of microinverters.

RPM International (RPM) Gains From Buyouts & Strategic Plans
Per the Zacks analyst, RPM benefits from the implementation of MAP 2025 operational improvement initiatives as well as various acquisitions.

New Downgrades

Macro Headwinds, Component Shortages Drag Down Seagate (STX)
Per the Zacks analyst, Seagate's performance is likely to be affected by uncertainty prevailing over global macroeconomic conditions along with non-HDD component shortages in the near term.

Strong Product Portfolio Aids DexCom (DXCM) Fight Competition
Per the Zacks analyst, DexCom strong product portfolio targeting the large and growing diabetes market is helping the company fight intensifying competition with entry new competing products.

Dismal Visitation Likely to Hurt MGM Resorts (MGM) Prospects
Per the Zacks analyst, MGM Resorts is experiencing limited visitation in Macau owing to coronavirus crisis. Also, lack of frictionless travel between Macau and Mainland China is a concern.

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

Toyota Motor Corporation (TM) : Free Stock Analysis Report

Schlumberger Limited (SLB) : Free Stock Analysis Report

Walmart Inc. (WMT) : Free Stock Analysis Report

DexCom, Inc. (DXCM) : Free Stock Analysis Report

lululemon athletica inc. (LULU) : Free Stock Analysis Report

Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report

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Zacks Investment Research