Wednesday, January 12, 2022
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 Exxon Mobil Corporation (
XOM
), Sony Group Corporation (
SONY
), and The Estee Lauder Companies Inc. (
EL
). 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
Exxon Mobil
have outperformed the Zacks Integrated International Oil industry over the past year (+56.5% vs. +40.2%). The Zacks analyst believes that major discoveries in the Stabroek Block have enhanced prospects for ExxonMobil’s upstream businesses. Exxon recently made two new oil discoveries in the Stabroek Block, which will add to its 10 billion oil-equivalent barrels of recoverable resources from the block.
XOM already has a strong presence in the prolific Permian Basin, where it continues to lower its fracking & drilling costs. Exxon Mobil increased its fourth-quarter 2021 dividend to 88 cents per share. In order to capitalize on mounting demand for clean energy, XOM is making efforts to create more efficient fuels while reducing emissions.
(You can
read the full research report on Exxon Mobil here >>>
)
Sony
shares have gained +15.4% over the past three months against the Zacks Audio Video Production industry’s gain of +14%. The Zacks analyst believes that Sony has been benefiting from an increase in Game & Network Services, Pictures, Music and Electronics Products & Solutions segments sales.
Sony’s long-term vision is to achieve a ‘zero environmental footprint’ by 2050 for the entire life cycle of its products. It has incorporated several changes to the Group’s organizational structure in a bid to boost individual businesses as well as to leverage the diversity of its business portfolio. Escalating cost of goods sold and fluctuations in foreign currency exchange rates, however, remain as major concerns for Sony.
(You can
read the full research report on Sony here >>>
)
Shares of
Estee Lauder
have gained +6.6% in the last six months against the Zacks Cosmetics industry’s loss of -19%. The Zacks analyst believes that Estee Lauder has been benefiting from the momentum in its Skin Care business. A robust online presence is another major catalyst for Estee Lauder’s growth.
EL saw net sales growth in every region and product category in first-quarter fiscal 2022. Estee Lauder is also undertaking cost-control measures. The company, however, experienced intermittent shutdowns in certain markets during the first quarter, due to a spike in COVID cases. International travel restrictions have also been affecting consumer traffic in certain locations.
(You can
read the full research report on Estee Lauder here >>>
)
Other noteworthy reports we are featuring today include Cigna Corporation (
CI
), Vale S.A. (
VALE
) and Block, Inc. (
SQ
).
Sheraz Mian
Director of Research
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>>>
Today’s Must Read
Exxon Mobil (XOM) Gains From Discoveries at Stabroek Block
SONY (SONY) Gains From Strength in Game & Network Services
The Estee Lauder Companies (EL) Gains on Skincare Strength
Featured Reports
Cigna (CI) Benefits from Strategic Acquisitions, Costs High
Per the Zacks analyst, strategic buyouts have enhanced the company’s capabilities, which in turn have led to top-line growth. However, high costs continue to weigh on margins.
Improving Iron Ore Prices to Aid Vale (VALE) Amid High Costs
Per the Zacks analyst, improving iron ore prices aided by recovery of steel demand in China will aid Vale’s top-line performance. Inflated input and freight costs will likely hurt margins.
Growing Cash App Adoption & Seller Momentum Aid Block (SQ)
Per the Zacks analyst, Block is benefiting from strong Cash App engagement and its growing active customer base. Further, the company’s strengthening momentum across sellers remains a positive.
Buyouts, Diversification Aid Moody’s (MCO), High Costs Ails
Per the Zacks analyst, synergies from strategic buyouts and efforts to diversify revenues will keep aiding Moody’s.
Order Growth Aids General Dynamics (GD), Poor Deliveries Woe
Per the Zacks analyst, solid order flow for its products bolsters General Dynamics’ revenue growth prospects. Yet poor deliveries from its Aerospace segment, led by COVID-19, might hurt the stock.
Investment Aids Edison International (EIX), Weak Financials
Per the Zacks analyst, Edison International’s systematic capital investment strategy plan is likely to boost its growth in the long term.
Airfreight Revenues and Dividends Boost Expeditors (EXPD)
The Zacks analyst is impressed with the company’s efforts to reward its shareholders. The uptick in airfreight revenues represents an added positive.
New Upgrades
Williams (WMB) to Benefit from Transco-Related Projects
The Zacks analyst believes that Williams’ existing and expansionary projects associated with the massive Transco gas transmission system are expected to boost the company’s growth prospects.
Nucor (NUE) Gains on Strong Demand, Higher Steel Prices
Per the Zacks analyst, Nucor will benefit from strong demand across non-residential construction and automotive markets. Higher steel prices will also act as a catalyst for its steel mills unit.
Strong Demand for Amarin’s (AMRN) Vascepa Driving Revenues
Per the Zacks analyst, Amarin’s sole marketed drug, Vascepa, has demonstrated encouraging sales growth since its launch in 2013. The momentum is expected to continue for the rest of 2021.
New Downgrades
Stiff Competition, High Debt Burden Ail America Movil (AMX)
Per the Zacks analyst, intense competition from U.S. telecom behemoth AT&T, along with a strict switching policy, is likely to strain America Movil’s margins. High debt load is another major concern.
Stiff Competition in MedTech Space Ails Cardinal Health (CAH)
The Zacks analyst is worried about Cardinal Health’s operation in a tough competitive space. Probabilities of losing any group purchasing organizations is an added issue.
High SG&A Costs Likely to Weigh on Tapestry’s (TPR) Margins
Per the Zacks analyst, a rise in SG&A expenses may hit Tapestry’s margins. Adjusted SG&A expenses rose 26.6% year over year to $761.6 million during the first quarter of fiscal 2022.
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