Monday, November 14, 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 Chevron Corporation (CVX), Eli Lilly and Company (LLY) and The Charles Schwab Corporation (SCHW). 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 (+59.6% vs. +47.7%). Based on a slew of tailwinds, the company is poised for further capital appreciation. 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, the Zacks analyst 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 >>>)

Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+36.3% vs. +8.0%). The company’s revenue growth is being driven by higher demand for drugs like Trulicity, Taltz, and others. It is regularly adding promising new pipeline assets through business development deals.

Lilly expects to launch five new medicines by 2023 end including Mounjaro for type II diabetes (already launched) and donanemab for early Alzheimer's disease. Both drugs have multibillion dollar sales potential.

However, generic competition for several drugs, rising pricing pressure in the United States mainly on key drug, Trulicity, and price cuts in some international markets like China, Japan and Europe are some top-line headwinds. Estimates have gone down slightly ahead of Q3 results. Lilly has a negative record of earnings surprises in the recent quarters.

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

Shares of Charles Schwab have declined -4.3% over the past year against the Zacks Financial - Investment Bank industry’s decline of -9.5%. The company does not have an impressive earnings surprise history. Its elevated expenses might hamper the company's bottom-line growth to an extent. A stretched valuation limits the upside potential of the stock.

However, its earnings surpassed the Zacks Consensus Estimate in two and lagged in two of the trailing four quarters. Strategic acquisitions, likely to be earnings accretive, have reinforced Schwab's position as a leading brokerage player. Offering commission-free trading has led to a rise in client assets and brokerage accounts, thereby improving trading revenues.

The interest rate hikes are expected to aid margin growth. Also, Schwab's efficient capital deployments reflect a solid balance sheet position, through which it will enhance shareholder value.

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

Other noteworthy reports we are featuring today include Salesforce, Inc. (CRM), Lowe's Companies, Inc. (LOW), and SAP SE (SAP).

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>>>