Wednesday, September 13, 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 Costco Wholesale Corporation (COST), Equinor ASA (EQNR) and Lam Research Corporation (LRCX). 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 Costco Wholesale have outperformed the Zacks Retail - Discount Stores industry over the year-to-date period (+23.1% vs. +3.5%). The company being a consumer defensive stock, has been surviving the market turmoil pretty well.

The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth. These factors have been helping it register decent sales and earnings numbers. This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates.

A favorable product mix, steady store traffic, pricing power and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.

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

Equinor shares have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past six months (+20% vs. +16%). The company is one of the premier integrated energy companies, with operations across 30 countries.

During the second quarter, this integrated energy giant successfully concluded seven exploration wells in offshore operations, resulting in the identification of three commercially viable discoveries. The firm expects a significant expansion of its renewable production capabilities. Equinor expanded its ongoing share buyback initiative, creating a buyback program of up to $6 billion for 2023.

However, Equinor’s balance sheet has a notable level of debt exposure compared with industry peers, affecting its financial flexibility. The company faced the burden of rising costs in recent quarters, which has had a detrimental impact on its income. Also, its ambitious capital budget represents a challenge. As such, the stock warrants a cautious stance.

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

Shares of Lam Research have outperformed the Zacks Semiconductor Equipment - Wafer industry over the year-to-date period (+56.7% vs. +29%). The company’s proper execution, expansion and diversified global footprints are positives. Lam Research remains optimistic about its technological advancements, especially with AI.

Also, its strength in 3D DRAM and advanced packaging is a tailwind. Further, rising NAND requirement in accelerating 5G migration, video, and new game consoles is another positive. Solid traction among etch and deposition technologies are likely to aid the company in the near term.

Further, advanced packaging technology inflections are other positives. Additionally, strength in both ALD metals and dielectrics deposition solutions is a tailwind. However, weak outlook for 2023 wafer fabrication equipment spending remains a major concern. Also, sluggish memory spending remains a headwind.

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

Other noteworthy reports we are featuring today include Schlumberger Limited (SLB), Synopsys, Inc. (SNPS) and PPG Industries, Inc. (PPG).

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>>>