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Research Daily

Mark Vickery

Top Research Reports for Walmart, Toyota Motor & Schlumberger


Trades from $3

Thursday, December 1, 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), Toyota Motor Corp. (TM) and Schlumberger Ltd. (SLB). 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's shares are in line with the Zacks Retail - Supermarkets industry over the past year (+12.5% vs. +12.4%). The company has been benefiting from its robust omnichannel operations due to its efforts to enhance both store and online experience. Walmart has been particularly gaining from its efforts to boost delivery services through acquisitions and partnerships.

The company’s U.S. comp sales continued to benefit from an increased market share in grocery in the third quarter of fiscal 2023, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and increased year over year. A robust third-quarter show encouraged management to raise its overall guidance for fiscal 2023.

However, its consolidated operating income and earnings per share view still suggest a decline from the year-ago period figures. The company is encountering cost inflation, and expects it to remain elevated.

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

Shares of Toyota Motors have declined -19.4% over the past year against the Zacks Automotive - Foreign industry’s decline of -40.1%. The company is facing supply-chain disruptions, logistical challenges and manufacturing inefficiencies are likely to dent profits. Operating income is projected to decline 19.8% year over year. High capex and R&D expenses are also likely to dent cash flows. Also, Toyota's rising debt pile raises concerns. As such, investors are advised to wait for a better entry point.

However, the Japan-based carmaker is one of the world’s leading automakers, with an array of brands, including Toyota, Lexus and Scion, offering solid prospects. Toyota’s electrification push is a major tailwind.

It is deepening its focus on manufacturing electric and fuel-cell vehicles, which will bolster the company’s product competitiveness. The company's raised sales view for fiscal 2023 sparked optimism. Investor-friendly moves also instill confidence.

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

Schlumberger’s shares have outperformed the Zacks Oil and Gas - Field Services industry over the past year (+75.9% vs. +20.1%). The company is the single largest oilfield services player, with a presence in every energy market across the globe. Being the leading provider of technology for complex oilfields, the company is well-poised to take up new offshore projects in international markets.

The significant increase in oil prices is aiding its overall business. Increased participation in growth of drilling and completion activities across the world brightened the company’s outlook. Also, it boasts of becoming the first company in the energy service industry to add Scope 3 emissions ambition in the net-zero emission target.  

However, the company’s balance sheet has massive debt exposure compared with the composite stocks in the industry. Also, the aggressive capital spending budget remains a headwind for the company. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include Lululemon Athletica Inc. (LULU), DexCom, Inc. (DXCM), and Enphase Energy, Inc. (ENPH).

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>>>

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