Thursday, September 1, 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 Exxon Mobil Corporation (XOM), Marsh & McLennan Companies, Inc. (MMC) 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 >>>

Exxon Mobil shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+77.5% vs. +51.0%). The company’s bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play.

Exxon Mobil made three oil discoveries in the Stabroek Block, which will increase its recoverable resources estimates to 11 billion oil-equivalent barrels. It also has a strong presence in the prolific Permian Basin, where it expects to boost production volumes by 25% in 2022.

The company reported strong second-quarter earnings, owing to higher realized commodity prices and solid refinery utilization. The company generated a cash flow of $20.9 billion from operations and asset divestments in the second quarter. Also, it has significantly lower debt exposure than other integrated majors. Hence, ExxonMobil is considered a preferred energy firm to own now.

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

Marsh & McLennan shares have modestly outperformed the Zacks Insurance - Brokerage industry over the past year (+2.4% vs. +2.0%) on the back of significant investments and acquisitions made within its operating units, the launch of new products, digital capabilities and branching out into new businesses.

Its increased stake in Marsh India will further buoy growth. Revenues have been increasing thanks to a wide geographic presence and strong client retention. The Risk and Insurance Services unit has been contributing to its revenue growth. It has plans to deploy roughly $4 billion capital in 2022 through dividends, buyouts and share repurchases.

However, its escalating operating expenses might weigh on the margins. High debt levels remain a concern. Its valuation remains stretched at the current level. As such, the stock warrants a cautious stance.

(You can read the full research report on Marsh & McLennan here >>>)

Chubb's shares have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+5.1% vs. -8.1%), with the outperformance reflecting benefits from a suite of compelling products as well as services. Its inorganic growth story helps it to achieve a higher long-term ROE. It boasts a strong capital position, with sufficient cash generation capabilities.

It is focusing to capitalize on the potential of middle-market businesses. Several distribution agreements have expanded its network, boosting market presence. It made investments in various strategic initiatives that paved the way for long-term growth.

Chubb’s strong capital position helps it boost shareholder value. Given the rise in interest rate, it expects adjusted investment income for the third quarter of 2022 to be $980 million to $1 billion. However, exposure to cat loss induces volatility in underwriting results. Elevated expenses weigh on operating inc

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

Other noteworthy reports we are featuring today include Emerson Electric Co. (EMR), CrowdStrike Holdings, Inc. (CRWD), and Cheniere Energy, Inc. (LNG).

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>>>