Thursday, July 8, 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 Amazon.com (AMZN), PepsiCo (PEP) 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 >>>

Shares of Amazon have underperformed the broader market in the year-to-date period (+12% vs. +17.6%). The Zacks analyst believes that the company has been gaining from solid Prime momentum on the back of ultra-fast delivery services and a strong content portfolio.

Moreover, a surge in online grocery shopping is another positive. A strong adoption rate of AWS is aiding the company’s cloud dominance, and an expanding AWS services portfolio is helping Amazon gain further momentum among its customers. However, accelerating coronavirus-related expenses remain a major risk for the company’s margin expansion.

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

PepsiCo’s shares have gained +6.8% over the last six months against the Zacks Soft Drinks Beverages industry’s gain of +8.5%. The Zacks analyst believes that despite the pandemic, PepsiCo remains financially sound to run its business and meet obligations. As of Mar 20, 2021, the company’s long-term debt declined 3.4% sequentially to $38,991 million.

Also, the robust fourth quarter results were driven by resilience and strength in the global snacks/foods business, along with accelerated growth in the beverage category. However, it witnessed soft margins on international acquisitions and unforeseen weather-related costs in the United States in February. Adverse currency rates remain a headwind.

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

Shares of Chevron have gained +1.3% in the past three months against the Zacks Integrated Oil industry industry’s gain of +2.2%. The Zacks analyst believes that Chevron’s acquisition of Noble Energy for $5 billion, has expanded its presence in the DJ Basin as well as the Permian Basin.

While the company has struggled with depressed demand, it recently hiked its dividend by 3.9% in a shareholder-friendly move. However, last year’s commodity price crash forced it to cut capital spending and suspend buybacks. Moreover, its reserve replacement ratio of 74% indicates its inability to add reserves to replace the amount of oil and gas produced.

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

Other noteworthy reports we are featuring today include American Tower (AMT), CME Group (CME) and Fiserv (FISV).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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>>>