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The Zacks Analyst Blog Highlights : Chevron, SAP, United Parcel Service, Citigroup and TransDigm Group

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For Immediate Release

Chicago, IL – December 11, 2023 – 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: Chevron Corp. (CVX - Free Report) , SAP SE (SAP - Free Report) , United Parcel Service, Inc. (UPS - Free Report) , Citigroup Inc. (C - Free Report) and TransDigm Group Inc. (TDG - Free Report) .

Here are highlights from Friday’s Analyst Blog:

Top Analyst Reports for Chevron, SAP and United Parcel Service

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 Corp. (CVX - Free Report) , SAP SE (SAP - Free Report) and United Parcel Service, Inc. (UPS - Free Report) . 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 >>>

Chevron's shares have underperformed the Zacks Oil and Gas - Integrated - International industry over the past year (-11.9% vs. -0.5%). The company has grappled with the 2020 commodity price crash, leading to substantial spending cuts. Concerns include high sensitivity to oil prices and a 10-year reserve replacement ratio of 100%, indicating challenges in replenishing produced energy. Considering all these factors, investors are advised to wait for a better entry point.

Nevertheless, Chevron is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin. Further, the recent acquisition of Hess Corp. is expected to significantly strengthen Chevron's presence in oil-rich Guyana.

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

Shares of SAP have outperformed the Zacks Computer - Software industry over the year-to-date period (+56.3% vs. +55.2%). The company's performance is benefiting from continued strength in its cloud business (especially the new Rise with SAP and Grow with SAP solutions) across all regions.

Momentum in SAP's business technology platform, particularly the S/4HANA solution along with opportunities presented by proliferation of generative AI bode well. Management also reaffirmed its 2023 guidance as well as its long-term targets. Frequent product launches, and strategic acquisitions and collaborations are other tailwinds.

However, continued softness in the Software license and support business segment coupled with global macroeconomic weakness and geopolitical instability remain concerning. Also, increasing research & development costs, and stiff competition in the cloud space are headwinds.

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

Shares of United Parcel Service have underperformed the Zacks Transportation - Air Freight and Cargo industry over the past year (-8.4% vs. +6.7%). The company now expects revenues in 2023 to be between $91.3-$92.3 billion. The new forecast is not only below the previous outlook of around $93 billion but also much lower than 2022's actual figure.

Management trimmed its revenue forecast for the full year due to weak e-commerce delivery demand and lost clients during the turbulent labor negotiations. The five-year deal with the International Brotherhood of Teamsters for better pay and working conditions is worth less than $30 billion. It is likely to keep labor cost at high levels.

UPS is looking to drive growth in this uncertain scenario by improving efficiencies. Efforts to reward its shareholders also bode well for UPS stockholders. The company's strong free cash flow generating ability is encouraging and supports its shareholder-friendly activities.

(You can read the full research report on United Parcel Service here >>>)

Other noteworthy reports we are featuring today include Citigroup Inc. and TransDigm Group Inc..

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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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