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The Zacks Analyst Blog Highlights: Chevron, Walmart, ConocoPhillips, TransDigm and Phillips 66 Partners

Zacks Equity Research

For Immediate Release

Chicago, IL – September 18, 2019 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Chevron CVX, Walmart WMT, ConocoPhillips COP, TransDigm Group TDG and Phillips 66 Partners PSXP.

Here are highlights from Tuesday’s Analyst Blog:

Top Research Reports for Chevron, Walmart and ConocoPhillips

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, Walmart and ConocoPhillips. 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 >>>

Chevron’s shares have outperformed the Zacks Integrated Oil industry over the past three months (0.9% vs. -5.1%). The Zacks analyst thinks that the company’s existing project pipeline is among the best in the industry, targeting volume growth of around 4-7% in 2019 thanks to planned expansion in the Permian Basin.

Chevron pumped 55% more out of the West Texas shale play in the most recent quarter compared with the year-ago period, with output set to soar in the coming years. Being one of the most oil weighted majors, Chevron is also poised to benefit from the recent Saudi Arabian supply shock and the subsequent advancement of crude oil.

However, there are worries over drop in its refining earnings that once again cut into gains from rising E&P income. The massive capex might also play a spoilsport.

Shares of Walmart have gained 16% in the past six months, outperforming the Zacks Supermarkets industry’s rise of 14.2%. The Zacks analyst believes that the company’s focus on strengthening e-commerce and store operations aided it retain sturdy comps trend in first-quarter fiscal 2019, wherein earnings marked its fifth straight beat.

Further, U.S. comps rose for the 19th straight time. Further, e-commerce sales surged on robust and online grocery performances. Encouragingly, e-commerce sales are expected to rise nearly 35% in fiscal 2020. The company is also making efforts to improve its International unit by shifting focus to profitable countries.

However, the addition of Flipkart was a drag on Walmart’s operating income. Moreover, transportation costs, compelling pricing strategy and tariff-related worries are threats to margins. Nonetheless, the Flipkart deal bodes well for the long term.

ConocoPhillips’ shares have gained 0.3% year to date, outperforming the Zacks U.S. Integrated Oil industry’s fall of 11% over the same period. ConocoPhillips holds the bulk of acres in the unconventional plays of Eagle Ford shale, Delaware basin and Bakken shale.

From the three oil-rich plays, ConocoPhillips projects compound annual production growth rate of more than 25% from 2017 to 2019. The Zacks analyst believes that there are significant opportunities for ConocoPhillips in the Eagle Ford shale where it owns about 3,400 undrilled locations that could lend access to almost 2.3 billion barrels of oil equivalent estimated potential reserves.

However, ConocoPhillips’ expectation of higher production costs is likely to hurt profits. Moreover, the company’s third-quarter output is expected to be hurt by turnaround activities in Alaska, Asia Pacific and Europe. On top of that, over the past two years, the upstream energy player has been persistently paying lower dividend yield than the industry.

Other noteworthy reports we are featuring today include TransDigm Group and Phillips 66 Partners.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

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Phillips 66 Partners LP (PSXP) : Free Stock Analysis Report
Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
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