Tuesday, September 19, 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 Alibaba Group Holding Limited (BABA), TotalEnergies SE (TTE) and ConocoPhillips (COP). 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 >>>

Alibaba shares have gained +1.4% over the past year against the Zacks Internet - Commerce industry’s gain of +13.2%, reflecting the uncertain macroeconomic outlook for its home market. The company’s solid momentum across the China and international commerce retail businesses is driving its top-line growth. Notably, China commerce retail business is driven by rising online physical goods GMV at Taobao and Tmall.

Further, International retail business is riding on solid combined order growth. Moreover, strength across the Cainiao logistics services, owing to robust domestic consumer logistics and international fulfillment solution services is a plus.

This apart, strength across cloud computing business and local services is a tailwind. However, macroeconomic uncertainties are concerns. Additionally, normalization of cloud demand as offline activities are resuming, is an overhang.

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

Shares of TotalEnergies have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past year (+43.7% vs. +32.1%). The company continues to benefit from startups, well-spread LNG assets and an expanding upstream portfolio that has exposure to rapidly growing hydrocarbon-producing regions. Lower exposure to mature assets acts as a tailwind.

The company streamlines its portfolio through acquisitions and divestitures. TotalEnergies is steadily investing to expand its renewable operation and aims to achieve net-zero emissions by 2050.

However, the company’s production has been impacted by security-related production cuts in some regions. TotalEnergies remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. A natural decline in production and its withdrawal from Russia might affect profitability.

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

ConocoPhillips’ shares have outperformed the Zacks Oil and Gas - Integrated - United States industry over the past year (+16.7% vs. +14.6%). The company has secured a solid production outlook, thanks to its decades of drilling inventories across its low-cost and diversified upstream asset base. The resource base represents the company’s strong footprint in prolific acres in the United States, comprising Eagle Ford shale, Permian Basin and Bakken shale.

Also, the company is better positioned to rely on its strong balance sheet to withstand any adverse business scenario. However, due to the inflationary market, the company’s overall operating and production expenses continue to increase, hurting the bottom line.

ConocoPhillips’ exploration and production activities are exposed to extreme volatility in oil and gas prices, making the overall business scenario of the upstream energy player extremely choppy.

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

Other noteworthy reports we are featuring today include Elevance Health, Inc. (ELV), The Charles Schwab Corporation (SCHW) and Petróleo Brasileiro S.A. - Petrobras (PBR).

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>>>