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Top Stock Reports for Walmart, Roche & Chevron

Wednesday, September 2, 2020

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 (WMT), Roche Holding (RHHBY) and Chevron (CVX). 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 shares have outperformed the Zacks Supermarkets industry in the year to date period (+24.2% vs. +23.1%). The Zacks analyst believes that the company has been benefiting from rising demand for grocery and general merchandise items amid coronavirus-led stay-at-home trends. Stay-at-home trends are also boosting e-commerce sales, which soared 97% in second-quarter fiscal 2021.

During the quarter, sales and earnings beat the consensus mark and grew year over year, with U.S. comps rising for the 24th straight time. In the U.S. segment, both store and online sales remained strong, supported by government stimulus. Clearly, Walmart’s efforts to enhance deliveries are yielding results.

However, the company is seeing high COVID-19-related costs, especially related to special bonuses. Also, price investments are hurting gross margin to an extent.

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

Shares of Roche have gained +7% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s rise of +8.4%. The Zacks analyst believes that strong demand for its breast cancer drugs is a major upside for Roche. Also, the expansion of portfolio beyond oncology into immunology is a major positive.

Roche’s performance in the second quarter was negatively impacted by the COVID-19 outbreak, as patients defer routine visits to physicians. While the performance in the first quarter was reasonably good, weak performance in the second quarter affected the first-half results. Nevertheless, the company maintained its outlook.

Strong growth in Ocrevus, Perjeta, Tecentriq and Hemlibra countered biosimilar competition for Herceptin, MabThera and Avastin. Label expansion of Tecentriq into additional indications is a positive. Moreover, the company has a few diagnostics tests for COVID-19, which should boost demand for that segment.

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

Chevron shares have lost -28.5% over the past year against the Zacks Integrated Oil industry’s fall of -39.1%. The Zacks analyst believes that the supermajor’s reserve replacement ratio of 44% is indicative of its inability to add proved reserves to its reserve base to the amount of oil and gas produced.

While the company reported a big Q2 loss, it vowed to keep its dividend and reported impressive U.S. production growth thanks to strength in the Permian Basin. Chevron’s proposed Noble Energy takeover deal is anticipated to expand its footprint in the DJ Basin and the Permian Basin along with cash-generating offshore assets in Israel.

However, Chevron is not immune to commodity price crash, forcing it to cut capex and suspend buybacks. The company’s high oil price sensitivity is a concern too.

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

Other noteworthy reports we are featuring today include QUALCOMM (QCOM), Advanced Micro Devices (AMD) and S&P Global (SPGI).

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Sheraz Mian

Director of Research

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's (WMT) Sales to Gain on Robust Ecommerce Business

Biosimilars Offset Roche's (RHHBY) Strong Oncology Portfolio

Chevron (CVX) to Boost Permian Position with Noble Buy

Featured Reports

Qualcomm (QCOM) Benefits From 5G Investments Amid Competition

Per the Zacks Analyst, Qualcomm is well-positioned to benefit from its 5G rollout and System-on-Chip launches.

AMD Rides on Robust 7 nm Product Portfolio & Partnerships

Per the Zacks analyst, Advanced Micro Devices is benefiting from strong adoption of latest 7 nm based EYPC and Ryzen processors.

S&P Global (SPGI) Benefits From Acquisitions Amid Debt Woes

The Zacks analyst believes that acquisitions like Canadian Enerdata and Live Rice Index help S&P Global innovate and develop new products.

CVS Health (CVS) Tackles Pandemic Crisis with Digital Strategy

The Zacks analyst believes CVS Health's highly adaptable consumer centric digital strategy to play a major role in helping the company withstand the pandemic-led challenges on its business.

Square (SQ) Banks on Solid Cash App Adoption, Bitcoin Growth

Per the Zacks analyst, Square is benefiting from strong Cash App engagement and its growing active customer base.

Strategic Initiatives Aid Aon (AON), High Debt Level Hurts

Per the Zacks analyst, a number of acquisitions and collaborations have helped it enhance its capabilities, which has in turn improved its bottom-line.

EchoPark Unit & Digital Ramp Up Buoys Sonic Automotive (SAH)

Sonic's used vehicle unit, EchoPark, is expected to boost the firm's profitability. Increased e-commerce efforts are also likely to drive the top-line, per the Zacks analyst.

New Upgrades

Robust Uptake of 5G Testing Solutions Aids Keysight (KEYS)

Per the Zacks analyst, Keysight is well-positioned to gain from solid demand for 5G design and test solutions primarily from telecom vendors, and a strong pipeline for new business bookings.

Solid Prospects in CVI Segment Continue to Aid Cooper (COO)

Per the Zacks analyst, Cooper has been gaining persistently from solid prospects of its core CVI segment mainly driven by its highly exclusive products of Biofinity, Clariti, and MiSight.

Michaels' (MIK) Strategies Position it for Long-Term Growth

Per the Zacks analyst, Michaels is on track with efforts to boost e-commerce growth through initiatives like BOPUS, as well as the core 'maker' strategy, which bode well for long-term profitability.

New Downgrades

Pandemic & External Headwinds Ails Stanley Black (SWK)

Per a Zacks analyst, Stanley Black (SWK) is exposed to headwinds arising from the coronavirus outbreak. Also, forex woes and tariffs represents a $180-million headwind.

Arthur J. Gallagher (AJG) Buyouts Aid, Cost Woes Linger

Per the Zacks analyst, a number of acquisitions have helped Arthur J. Gallagher to enhance its capabilities and drive growth.

Vail Resorts (MTN) Hurt by Dismal U.S. travel Market Demand

Per the Zacks analyst, uncertain impact of the coronavirus pandemic on the broader U.S. travel market continues to hurt Vail Resorts' operations.


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Walmart Inc. (WMT) : Free Stock Analysis Report
 
SP Global Inc. (SPGI) : Free Stock Analysis Report
 
Roche Holding AG (RHHBY) : Free Stock Analysis Report
 
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
 
Chevron Corporation (CVX) : Free Stock Analysis Report
 
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
 
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