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The Zacks Analyst Blog Highlights: Walmart, Roche and Chevron

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For Immediate Release

Chicago, IL – September 3, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Walmart Inc. (WMT - Free Report) , Roche Holding AG (RHHBY - Free Report) and Chevron Corporation (CVX - Free Report) .

Here are highlights from Wednesday’s Analyst Blog:

Top Stock Reports for Walmart, Roche and Chevron

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, Roche Holding and Chevron. 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 shares have outperformed the Zacks Supermarkets industry in the year to date period (+24.2% vs. +23.1%). The Zacks analyst believes that the company has been benefiting from rising demand for grocery and general merchandise items amid coronavirus-led stay-at-home trends. Stay-at-home trends are also boosting e-commerce sales, which soared 97% in second-quarter fiscal 2021.

During the quarter, sales and earnings beat the consensus mark and grew year over year, with U.S. comps rising for the 24th straight time. In the U.S. segment, both store and online sales remained strong, supported by government stimulus. Clearly, Walmart’s efforts to enhance deliveries are yielding results.

However, the company is seeing high COVID-19-related costs, especially related to special bonuses. Also, price investments are hurting gross margin to an extent.

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

Shares of Roche have gained +7% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s rise of +8.4%. The Zacks analyst believes that strong demand for its breast cancer drugs is a major upside for Roche. Also, the expansion of portfolio beyond oncology into immunology is a major positive.

Roche’s performance in the second quarter was negatively impacted by the COVID-19 outbreak, as patients defer routine visits to physicians. While the performance in the first quarter was reasonably good, weak performance in the second quarter affected the first-half results. Nevertheless, the company maintained its outlook.

Strong growth in Ocrevus, Perjeta, Tecentriq and Hemlibra countered biosimilar competition for Herceptin, MabThera and Avastin. Label expansion of Tecentriq into additional indications is a positive. Moreover, the company has a few diagnostics tests for COVID-19, which should boost demand for that segment.

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

Chevron shares have lost -28.5% over the past year against the Zacks Integrated Oil industry’s fall of -39.1%. The Zacks analyst believes that the supermajor’s reserve replacement ratio of 44% is indicative of its inability to add proved reserves to its reserve base to the amount of oil and gas produced.

While the company reported a big Q2 loss, it vowed to keep its dividend and reported impressive U.S. production growth thanks to strength in the Permian Basin. Chevron’s proposed Noble Energy takeover deal is anticipated to expand its footprint in the DJ Basin and the Permian Basin along with cash-generating offshore assets in Israel.

However, Chevron is not immune to commodity price crash, forcing it to cut capex and suspend buybacks. The company’s high oil price sensitivity is a concern too.

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

Other noteworthy reports we are featuring today include Advanced Micro Devices (AMD) and S&P Global (SPGI).

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Roche Holding AG (RHHBY) - free report >>

Chevron Corporation (CVX) - free report >>

Walmart Inc. (WMT) - free report >>

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