Monday, April 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 Walmart Inc. (WMT), Chevron Corporation (CVX) and Danaher Corporation (DHR). 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 >>>

Walmart shares have outperformed the Zacks Retail - Supermarkets industry over the past six months (+9.2% vs. +8.6%). The company has been benefiting from its robust omnichannel operations due to its efforts to enhance both store and online experience. Walmart has been particularly gaining from its efforts to boost delivery services.

The company’s U.S. comp sales continued gaining from an increased market share in grocery in the fourth quarter of fiscal 2023, wherein the top and bottom lines beat the Zacks Consensus Estimate and grew year over year. However, management offered a cautious view for fiscal 2024 due to the persistence of increased prices and chances for further macroeconomic woes.

The company is battling cost inflation and an adverse product mix, and its bottom-line view suggests a decline from the year-ago period figure. Nevertheless, consolidated net sales are likely to rise.

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

Shares of Chevron have gained +11.0% over the past year against the Zacks Oil and Gas - Integrated - International industry’s gain of +26.1%. 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 >>>)

Shares of Danaher have gained +0.6% over the past six months against the Zacks Diversified Operations industry’s gain of +9.1%. The company is gaining from healthy demand across key end-markets. Robust customer activity in bioprocessing, strength in instruments and consumables businesses within the Life Sciences segment and growth in Cepheid business, Molecular Diagnostics, Leica Biosystems within the Diagnostics unit augur well for the company’s growth.

Benefits from the DBS initiatives are helping the company expand its market share. Pricing actions and cost-control measures are supporting its margin performance.

However, supply chain disruptions continue to plague the company despite improving. Raw material cost-inflation and foreign currency headwinds are added concerns for Danaher. In 2022, foreign currency translation had a negative impact of 4% on sales.

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

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

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>>>