Back to top

Top Research Reports for ConocoPhillips, Dominion Energy & Schwab

Read MoreHide Full Article

Wednesday, March 13, 2019

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 ConocoPhillips (COP - Free Report) , Dominion Energy (D - Free Report) and Schwab (SCHW - 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 >>>

Buy-ranked ConocoPhillips’ shares are up +21.6% over the past year, outperforming the Zacks U.S. Integrated Oil industry, which has increased +4.1% over the same period. In terms of production and proved reserves, ConocoPhillips is the largest oil and gas exploration and production (E&P) player in the world.

The Zacks analyst thinks there are significant opportunities for the upstream energy player in the Eagle Ford where it owns about 3,400 undrilled locations. In fact, strong focus on two other prospective resources like Delaware basin and Bakken shale is expected to help ConocoPhillips achieve its target of more than 25% CAGR of production through 2017 to 2019.

The upstream energy player is strongly committed toward returning cash to shareholders as is evident from its $3-billion planned buyback program in 2019. ConocoPhillips is also planning to increase its dividend in 2019 after raising the same by 15% in 2018. On top of that, the balance sheet of ConocoPhillips is significantly less leveraged than the industry it belongs to.

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

Shares of Dominion Energy have gained +6.2% over the past six months, underperforming the Zacks Electric Power industry, which has increased +10.3% over the same period. The Zacks analyst thinks Dominion Energy is benefiting from its regulated growth projects and synergies from acquisition.

The company’s expansion of electric transmission, natural gas facilities and midstream assets are strong positives. The company completed its merger with SCANA and it is likely to be immediately accretive to earnings. However, Dominion Energy’s future earnings may get affected due to increase in pension expenses and share dilution.

The company and its gas unit’s dependency upon third-party producers for natural gas supply increases risk. Any delay in the ongoing capital projects may impact Dominion Energy’s profitability.

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

Buy-ranked Schwab’s shares have marginally outperformed the Zacks Investment Brokers industry over the past year, declining -21.4% vs -23.1%. It has an impressive earnings surprise history, having surpassed expectations in each of the trailing four quarters.

The Zacks analyst thinks the company remains well positioned to gain from higher interest rates and its initiatives to strengthen trading income. Also, the company’s efforts to improve operating efficiency will go a long way to support profitability.

While continuously rising operating expenses and the company’s significant dependence on fee based revenues remain major concerns, its efficient capital deployment activities reflect a strong balance sheet position.

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

Other noteworthy reports we are featuring today include Intuitive CenturyLink , Marvell Technology (MRVL - Free Report) and Vornado Realty Trust (VNO - Free Report) .

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?

From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.

This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.

See Stocks Today >>

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>>>

Published in