Friday, July 8, 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 ExxonMobil Corp. (XOM), Alibaba Group Holding Ltd. (BABA), and The Charles Schwab Corp. (SCHW). 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 >>>

ExxonMobil shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+47.5% vs. +31.0%). The Zacks analyst believes that the company’s bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play.

The company made three oil discoveries in the Stabroek Block, which will increase its recoverable resources estimates to 11 billion oil-equivalent barrels. Also, it has significantly lower debt exposure than other integrated majors.

ExxonMobil has increased its stock repurchase program from $10 billion to $30 billion. The company has planned to execute the repurchases through next year. However, the energy giant’s above-average capital spending program has got investors concerned.

Also, the integrated energy major has been witnessing lower oil equivalent production volumes, which might affect the bottom line. As such, the stock warrants a cautious stance.

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

Alibaba shares have outperformed the Zacks Internet - Commerce industry over the year-to-date basis (+3.0% vs. -27.2%). The company’s fiscal fourth-quarter results were driven by solid momentum across its retail business. Growing China and International Commerce businesses remained positive.

Further, strength across cloud, Cainiao and local consumer services contributed well. Notably, its robust New Retail strategy which is gaining strong traction in the market remains a major positive. This is aiding growth in Tmall Import, Freshippo and Intime Department Stores.

Additionally, the company’s strengthening cloud business on the back of its expanding customer base continues to drive its performance. However, rising competition from domestic as well as foreign e-commerce companies poses a serious risk. Further, the regulatory concerns and resurgence of COVID cases in China remain major headwinds.

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

Charles Schwab shares have declined -8.2% over the past year against the Zacks Financial - Investment Bank industry’s decline of -18.9%. The Zacks analyst believes that despite the recent rate hikes, relatively lower interest rates will likely keep hurting margins in the near term. Elevated operating expenses might hamper the company's bottom-line growth to some extent.

However, Strategic acquisitions are likely to be earnings accretive and have reinforced Schwab's position as a leading brokerage player. Offering commission-free trading has led to a rise in client assets and brokerage accounts, thereby improving trading revenues. Schwab's efficient capital deployments reflect a solid balance sheet position, through which it will enhance shareholder value.

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

Other noteworthy reports we are featuring today include The Home Depot, Inc. (HD), The Estée Lauder Companies Inc. (EL) and Automatic Data Processing, Inc. (ADP).

Mark Vickery
Senior Editor

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>>>