Today's Must Read
Accenture (ACN) Rides on Acquisitions Amid Pricing Pressure
Digital Investments Brighten AB InBev's (BUD) Growth Prospects
Wednesday, June 16, 2021
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 (CVX), Accenture (ACN), and Anheuser-Busch InBev (BUD). 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 modestly underperformed the Zacks Integrated Oil industry in the year-to-date period (+33.7% vs. +36.2%), but the company remains well positioned in the oil patch following the Noble Energy takeover that has expanded its footprint in the DJ Basin and the Permian Basin along with the addition of cash-generating offshore assets in Israel.
However, the oil supermajor was not immune to last year’s commodity price crash, forcing it to reduce capital spending as well as suspend buybacks. Also, Chevron’s high oil price sensitivity remains a major concern. Moreover, the company’s reserve replacement ratio of 74% sheds light on its inability to add reserves to replace the amount of oil and gas produced.
Accenture shares have gained +8.7% over the last six months against the Zacks Consulting industry’s gain of +11.8%. The Zacks analyst believes that the company has been steadily gaining traction in its outsourcing and consulting businesses.
Strategic enhancement of its cloud and digital marketing suite through acquisitions and partnerships bodes well for Accenture. However, pricing pressure due to significant competition from the likes of Genpact, Cognizant and Infosys remain a major concern. Furthermore, global presence exposes it to foreign currency exchange rate fluctuations.
Shares of Anheuser-Busch have gained +25.2% in the past three months against the Zacks Alcoholic Beverages industry’s gain of +15.5%. The Zacks analyst believes that the company’s unique commercial strategy, strong brand portfolio, investments in digital platform and operation excellence has led to market share growth across the key markets.
Further, AB InBev remains keen on making the most of the investments it has made over the years as well as rapidly growing its digital platform, including BEES and Ze Delivery. Moreover, its premium portfolio reported revenue growth of 28% in the first quarter of 2021, representing more than 30% of its total revenues.
Other noteworthy reports we are featuring today include Petrobras (PBR), VMware (VMW) and Barclays (BCS).
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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>>>