Tuesday, October 11, 2022

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Chevron Corporation (CVX), Amgen Inc. (AMGN) and HSBC Holdings plc (HSBC). 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 >>>

Chevron shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+46.7% vs. +11.2%). The company seems poised for further capital appreciation based on a slew of tailwinds.

The supermajor is considered one of the best placed integrated oil firms to achieve sustainable production growth, thanks to its premier position in the lucrative Permian Basin. Chevron’s Noble Energy takeover expanded its footprint in the region and the DJ Basin along with the addition of cash generating offshore assets in Israel.

In shareholder friendly moves, the integrated major recently hiked its dividend and boosted the stock repurchase program. Considering all of these factors, we expect the company’s EPS to grow 148% this year. Consequently, Chevron is viewed as a preferred energy major to own now.

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

Amgen shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+15.0% vs. -32.8%). The company’s key drugs like Prolia, Repatha and Xgeva are driving sales, increasing competition for its legacy products is hurting the same.

Amgen’s new drugs Lumakras and Tezspire, are off to an encouraging start. The acquisition of ChemoCentryx, if successfully closed, will add a strategic new growth asset in Tavneos to Amgen’s portfolio. Amgen boasts a strong biosimilars portfolio with potential new products expected to drive long-term growth.

However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products including some biosimilars. The IRS tax litigation is an overhang on Amgen shares. Estimates have declined slightly ahead of Q3 results.

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

HSBC's shares have declined -12.3% over the past year against the Zacks Banks - Foreign industry’s decline of -18.1%. The company’s initiatives to improve market share in the U.K. and China will continue to support financials, these might lead to a rise in expenses, which will likely hurt HSBC’s profits.

Nevertheless, HSBC’s product and service leadership in many of the cross-border banking services helps it in widening its customer base. Its strong capital position, initiatives to strengthen digital capabilities, an extensive network and improvement in operating efficiency through business restructuring will likely keep aiding the company's growth.

Moreover, exiting from the U.S. and French retail banking operations is expected to help HSBC focus more on Asia. In sync with this, the acquisition of AXA Singapore insurance assets will expand business in the region.

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

Other noteworthy reports we are featuring today include ConocoPhillips (COP), CVS Health Corporation (CVS), and S&P Global Inc. (SPGI).

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>>>