Monday, July 24, 2023

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), NextEra Energy, Inc. (NEE) and Chubb Limited (CB). 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 gained +10.7% over the past year against the Zacks Oil and Gas - Integrated - International industry’s gain of +20.8%. The company is considered 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. As a reflection of these positives, we saw CVX’s EPS jump 132% in 2022. 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 is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of energy produced.

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

NextEra Energy shares have gained +0.4% over the past six months against the Zacks Utility - Electric Power industry’s gain of +2.6%. The company continues to expand its operations through organic projects and strategic acquisitions. NextEra has many renewable projects in its backlog and their completion will reduce emissions.

The merger of Gulf Power and FPL strengthens NextEra’s position in Florida. FPL’s customer base is expanding as Florida’s economy improves and continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations and efficient debt management acts as a tailwind. NEE is expanding its operation in water space through acquisition.

However, due to the nature of its business, it is subject to complex regulations. Risk in operating nuclear units, unfavorable weather conditions and an increase in supply costs adversely impact earnings.

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

Shares of Chubb have gained +8.6% over the past year against the Zacks Insurance - Property and Casualty industry’s gain of +17.4%. The company benefits from a suite of compelling products as well as services. It is focusing to capitalize on the potential of middle-market businesses. Several distribution agreements have expanded its network, boosting market presence.

Chubb made investments in various strategic initiatives that paved the way for long-term growth. Strong capital position helps it boost shareholder value. Its inorganic growth story helps it to achieve a higher long-term return on equity.

It boasts a strong capital position with sufficient cash generation capabilities. It expects quarterly adjusted investment income to be between $1.2 billion to $1.22 billion in the second quarter of 2023. However, exposure to cat loss induces underwriting volatility. High expenses weigh on margin expansion.

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

Other noteworthy reports we are featuring today include Bayer Aktiengesellschaft (BAYRY), Newmont Corporation (NEM) and United Rentals, Inc. (URI).

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>>>