Wednesday, March 24, 2021

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 Exxon Mobil (XOM), Thermo Fisher Scientific (TMO) and Costco Wholesale (COST). 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 >>>

Exxon Mobil shares have outperformed the Zacks Integrated International Oil industry over the past year (+52.7% vs. +27.1%). The Zacks analyst believes that major discoveries in the Stabroek Block have enhanced prospects for ExxonMobil's upstream businesses.

ExxonMobil’s bellwether status in the energy space, optimal integrated capital structure that has historically produced industry-leading returns and management’s track record of capex discipline across the commodity price cycle make it a relatively lower-risk energy sector play.

Also, the leading integrated energy company has significant lower debt exposure as compared to other integrated majors. Overall, ExxonMobil is not focusing aggressively on production in order to win back investors but instead is making every effort to preserve shareholder’s capital while lowering costs.

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

Thermo Fisher’s shares have gained +6.7% over the last six months against the Zacks Medical Instruments industry’s gain of +3.6%. The Zacks analyst believes that Thermo Fisher is expanding inorganic growth profile with several takeovers including the Advanced Bioprocessing buyout from BD and Patheon.

The company ended the fourth quarter as well as full-year 2020 with better-than-expected numbers. It delivered an outstanding quarterly performance with strong organic growth leveraging on capacity to extend support amid pandemic.

A strong capital structure looks also encouraging. However, the coronavirus outbreak has massively disrupted the global supply chain. Foreign currency fluctuations and competitive landscape are major downsides.

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

Shares of Costco have lost -6.8% in the past three months against the Zacks Discount Retail industry’s loss of -1.4%. The Zacks analyst believes that the company’s growth strategies, better price management, decent membership trend and increasing penetration of e-commerce business reinforce its position.

Costco put up a decent performance in second-quarter fiscal 2021, wherein both the top and the bottom lines grew year over year. While earnings missed the Zacks Consensus Estimate, revenues surpassed the same.

Also, Costco maintained a stellar comps run. However, weak margins remain a concern. Any deleverage in SG&A rate as well incremental wages and sanitation costs cannot be ignored.

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

Other noteworthy reports we are featuring today include Applied Materials (AMAT), Vale S.A. (VALE) and Automatic Data Processing (ADP).

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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>>>