Thursday, February 23, 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 Exxon Mobil Corporation (XOM), The Coca-Cola Company (KO) and AstraZeneca PLC (AZN). 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 Exxon Mobil have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+44.8% vs. +24.1%). This reflects 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. The company has made more than 30 discoveries in offshore Guyana since 2015.

ExxonMobil also has a strong presence in the prolific Permian Basin, where it delivered record production in the third quarter. Considering the low cost of production in both assets, ExxonMobil will continue to generate handsome returns. Also, a strong presence in chemicals and refining operations is noteworthy.

However, ExxonMobil has constantly been bearing the brunt of increasing expenses, adversely affecting its income. Also, the integrated energy giant’s financials were weakened by years-long significant spending on low-return developments and the coronavirus pandemic.

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

Shares of Coca-Cola have underperformed the Zacks Beverages - Soft drinks industry over the past year (-0.9% vs. +7.0%). The company is facing pressures from higher transportation and input costs. Higher marketing spends and currency headwinds are concerning.

Nevertheless, Coca-Cola’s sales and earnings surpassed estimates for the seventh straight quarter. KO’s results benefited from the continued momentum from the first half of 2022. Sales gained from revenue growth across its operating segments, aided by an improved price/mix and an increase in concentrate sales.

Coca-Cola gained from underlying share gains in both at-home and away-from-home channels. We estimate organic revenue growth of 14.8% and comparable earnings per share growth of 6.6%, in line with the company’s raised view for 2022. Innovations and accelerating digital investments bode well.

(You can read the full research report on Coca-Cola here >>>)

AstraZeneca shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+18.4% vs. +13.6%). The company’s key drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues. Its pipeline is strong with several phase III data readouts lined up.

AstraZeneca has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. The Alexion buyout strengthens its immunology franchise, adding several drugs that are boosting its top line.

However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales are slowing down in its key market, China. Shares have outperformed the industry in the past one year. Estimate movement is mixed ahead of the Q4 earnings release. The company has a positive record of earnings surprises in the recent quarters.

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

Other noteworthy reports we are featuring today include BlackRock, Inc. (BLK), CSX Corporation (CSX) and Activision Blizzard, Inc. (ATVI).

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>>>