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Research Daily

Mark Vickery

Top Research Reports for Valero Energy, Roper Technologies & American Electric Power


Trades from $3

Friday, March 24, 2023

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 Valero Energy Corp. (VLO), Roper Technologies, Inc. (ROP) and American Electric Power Co., Inc. (AEP). 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 >>>

Valero Energy’s shares have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past year (+34.1% vs. +3.8%). The company offers the most diversified refinery base in the industry, with a capacity of 3.2 million barrels per day in its 15 refineries located throughout the United States, Canada and the Caribbean.

Importantly, Valero is best placed to reap profits from solid refining margins, mainly owing to the strategic refinery structure that enables it to use cheaper oil for more than half of its needs. The majority of Valero’s refining plants are located in the Gulf Coast area, from where there is easy access to the export facilities.

The Gulf Coast presence helped Valero expand export volumes over the past years and gain from high distillate margins. Valero recently reported strong fourth-quarter results due to increased refinery throughput volumes. The company intends to quadruple renewable diesel production capacity by 2023.

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

Shares of Roper Technologies have outperformed the Zacks Computers - IT Services industry over the past six months (+12.7% vs. +8.3%). The company is benefiting from strength across all its segments. Momentum across the Deltek, Vertafore, Aderant, CliniSys and Data Innovations businesses is aiding the Application Software unit.

The strong performance of freight-matching businesses bodes well for Network Software. Single-Use Bronchoscopy and Laryngoscopy offerings are aiding the Verathon business of the Technology Enabled Products unit. Strong cash flow generation supports Roper’s shareholder-friendly efforts.

However, supply-chain issues remain a challenge for Roper. The rising cost of sales and selling, general and administrative expenses pose a threat to the company’s bottom line. Foreign currency headwinds are added concerns.

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

Shares of American Electric Power have declined -11.8% over the past year against the Zacks Utility - Electric Power industry’s decline of -12.9%. The prolonged continuation of supply-chain disruptions and inflationary pressure might impact the cost of certain goods and services and extend lead times, thereby hurting American Electric’s financial condition. Also, a weak solvency position and unfavorable financial ratios indicate that the company might face difficulties meeting debt obligations.

Nevertheless, American Electric’s has a stable earnings base of approximately 5.5 million customers across more than 11 states. The company owns the nation's largest electricity transmission system and more than 224,000 miles of distribution lines.

American Electric plans to invest $40 billion in regulated operations, contracted renewables and wires during the 2023-2027 period to achieve long-term earnings growth of 6-7%.

(You can read the full research report on American Electric Power here >>>)

Other noteworthy reports we are featuring today include CrowdStrike Holdings, Inc. (CRWD), Walgreens Boots Alliance, Inc. (WBA) and AvalonBay Communities, Inc. (AVB).

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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