Friday, May 13, 2022
 

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 Mastercard Incorporated (MA). 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 held up very well in the ongoing market downturn, with the stock now up +1.9% in the year-to-date period vs. the -20.6% decline for the S&P 500 index. The Zacks analyst believes that the company continues to gain on its robust omnichannel efforts and last-mile delivery capabilities. With more customers and members returning to stores and clubs, demand seems to be strong. The Zacks analyst expects these positives to be on full display in the company's quarterly earnings reprot on Tuesday (May 17th). 

Walmart incurred high costs related to supply chain, wages, and COVID-19 during the fourth quarter of fiscal 2022, and expects some of these to linger through part of this year, including the coming quarterly release. The company envisions operating income and earnings per share to decline in the first quarter, as it cycles stimulus gains witnessed last year, along with higher wages this year.
 

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

Shares of Chevron have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+59.8% vs. +41.7%). The Zacks analyst believes that based on a slew of tailwinds, it seems poised for further capital appreciation. The supermajor is considered one of the best-placed integrated oil firms to achieve sustainable production growth. America’s No. 2 energy company’s project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin.
 

The company’s Noble Energy takeover expanded its footprint in the region and the DJ Basin along with the addition of cash generating offshore assets in Israel. In shareholder friendly moves, the integrated major recently hiked its dividend and boosted the stock repurchase program. Consequently, Chevron is viewed as a preferred energy major to own now.
 

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

Mastercard shares have declined -8.0% over the past year against the Zacks Financial Transaction Services industry’s decline of -37.1%. The Zacks analyst believes due to steep operating expenses margins might stress. High rebates and incentives may weigh on net revenues. Nevertheless, the company’s profit levels are rising thanks to increasing consumer spending. Numerous acquisitions are helping it to grow addressable markets and drive new revenue streams.
 

The COVID-19 crisis accelerated the use of electronic payments with much greater adoption of digital and contactless solutions. The situation provides an opportunity for Mastercard's business to expedite its shift to the digital mode. The company is well-poised to gain from steady cash-generating abilities. A strong capital position allows the company to pursue acquisitions and deploy capital. As such, the stock warrants a cautious stance.
 

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

Other noteworthy reports we are featuring today include Honeywell International Inc. (HON), SAP SE (SAP), and Caterpillar Inc. (CAT).

Sheraz Mian
 
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>>>