Today's Must Read
Strong Retail Crossover Sales Drives General Motors (GM)
Monsanto (MON) Set to Gain From Climate FieldView Platform
Monday, December 11, 2017
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 Schlumberger (SLB), General Motors (GM) and Monsanto (MON). 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 >>>
Schlumberger’s shares have lost -24.3% year to date, following the Zacks Oil and Gas Field Services industry’s -32.3% decline. However, this compares unfavorably with rival Halliburton’s -18.6% decline. But the Zacks analyst stresses that Schlumberger is the largest oilfield services player in the world with presence in every energy market across the world. Also, in all the operating business segments, the company is among the top players.
The firm has been banking on growing hydraulic fracturing work in the North American land market. Schlumberger is also expected to generate significant cashflow from the Palliser Block project where the company will assist Torxen Energy in setting up more than 1,600 oil wells.
However, since 2015, Schlumberger’s long-term debt load increased considerably. Moreover, the company’s cash balance has been declining over the last six quarters, reflecting significant balance sheet weakness.
Shares of General Motors have outperformed the Zacks Domestic Automotive industry over the last six months, increasing +21.2% vs. +6.1%. In November, the United States, the company reported 245,387 deliveries. The company was hugely successful in crossover lineup in November. Its Buick, Cadillac, Chevrolet and GMC brands recorded double-digit rises in retail deliveries of crossovers.
In November, General Motors, along with its Chinese joint venture (JV) announced record vehicles deliveries of 418,225 in China. This marks a 13% rise on yearly basis. The company aims to focus more on the development of electric vehicles and plans to roll out 20 electric or hydrogen fuel cell vehicles by 2023.
The Zacks analyst likes its emphasis on strengthening its brands, increasing retail sales and maintaining operating discipline. However, frequent vehicle recalls, high inventory level of passenger cars and currency fluctuations are few concerns the company has been facing.
Monsanto's shares have outperformed the Zacks Agricultural Products industry over the last year, gaining +12.1% vs. +11.3%. The company believes that elevated sales of crop yield enhancing products as well as premium plant disease control solutions will boost its near-term results.
Moreover, deeper penetration of the Climate FieldView platform and stronger innovation will be advantageous. Also, the completion of Bayer's buyout deal is anticipated to open up a number of opportunities for Monsanto. However, commercial rivalry in the global seeds, traits and agricultural chemical industry can prove detrimental.
Also, lack of any research & development as well as unfavorable commodity price fluctuations might be concerns. Over the last 30 days, Zacks Consensus Estimate for the stock remained stable for both fiscal 2018 and fiscal 2019.
Other noteworthy reports we are featuring today include Morgan Stanley (MS), Dollar Tree (DLTR) and United Continental (UAL).
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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>>>