Tuesday, December 13, 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 Chevron Corporation (CVX), Roche Holding AG (RHHBY) and General Electric Company (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 Chevron have modestly outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+46.0% vs. +44.8%) but they have handily outperformed the broader market.

The Zacks analyst sees Chevron as one of the best-placed global integrated oil firms to achieve sustainable production ramp-up. America’s No. 2 energy firm’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin.
 

However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially. The company’s high oil price sensitivity will be a headwind should that scenario unfold again. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of oil and gas produced.
 

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

Shares of Roche have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-18.0% vs. +17.2%). The Zacks analyst believes that Roche’s performance in 2022 has been hit by significantly lower COVID-related sales in both divisions as the pandemic eased out. Sales of Actemra/RoActemra and Ronapreve (COVID-19) are declining with the pandemic weakening in several countries in 2022.
 

Nevertheless, strong demand for new drugs, namely Hemlibra (hemophilia), Ocrevus (multiple sclerosis), Evrysdi (spinal muscular atrophy), Phesgo (cancer) and Tecentriq (cancer), maintained momentum. The Diagnostics division also remained stable in terms of the growth of its routine business. However, competition is stiff for Tecentriq. The decline in sales of drugs like Herceptin, Avastin and MabThera will continue to drag sales down. Pipeline setbacks are a concern.
 

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

Shares of General Electric have outperformed the Zacks Diversified Operations industry over the past six months (+22.3% vs. +8.8%). The Zacks analyst believes that strong performance of the Aerospace and Healthcare segments is driving General Electric’s growth. Its investments in productivity and innovation should fuel growth going forward. Cost-control measures and pricing actions are aiding its bottom line. The company’s measures to reward its shareholders are encouraging.
 

However, supply chain disruptions, including labor and material shortages and high logistics costs are weighing on the company’s performance. Weakness in the Power and Renewable energy segment due to lower volumes is concerning. Foreign currency headwinds are hurting the company’s top line.
 

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

Other noteworthy reports we are featuring today include Dow Inc. (DOW), Centene Corporation (CNC) and Carrier Global Corporation (CARR).
 

Director of Research
 

Sheraz Mian
 

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>>>