Tuesday, March 28, 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 Chevron Corporation (CVX), The Coca-Cola Company (KO) and General Electric Company (GE). 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 >>>

Shares of Chevron lost -4% of their value over the past year against the broader market's 14.2% pullback. The company is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up.

America’s No. 2 energy firm’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin. As a reflection of these positives, we saw CVX’s EPS jump 132% in 2022.

However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially. The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of energy produced.

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

Shares of Coca-Cola have gained +8.4% over the past six months against the Zacks Beverages - Soft drinks industry’s gain of +13.3%. The company’s results benefited from the continued momentum in its business. Sales gained from revenue growth across its operating segments, aided by an improved price/mix and a rise in concentrate sales. It is poised to gain from innovations and accelerating digital investments.

It provided an upbeat guidance for 2023. However, shares of Coca-Cola lagged the industry year to date. Pressures from higher supply chain costs, including transportation and input costs hurt gross margin. Higher marketing spends and currency headwinds are also concerning.

(You can read the full research report on Coca-Cola here >>>)

General Electric’s shares have outperformed the Zacks Diversified Operations industry over the past six months (+48.7% vs. +5.0%). The company is riding on the strong performance of the aerospace segment, driven by continued recovery in the commercial market and robust consumer demand is aiding General Electric’s growth.

Rebound in the Power segment after months of softness is encouraging. Investments in innovation and productivity improvement should fuel the company’s growth. Also, its shareholder-friendly policies are praiseworthy.

However, supply-chain disruptions, including labor and material shortages and high logistics costs, are weighing on General Electric’s performance. Raw material cost inflation poses a threat to the company’s bottom-line performance. Weakness in the Renewable Energy segment due to lower volumes is concerning. Foreign currency headwinds are hurting the company’s top line.

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

Other noteworthy reports we are featuring today include Oracle Corporation (ORCL), CME Group Inc. (CME) and Cadence Design Systems, Inc. (CDNS).

Director of Research

Sheraz Mian

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>>>