U.S. Markets closed

Top Analyst Reports for Apple, Visa, Chevron & Altria

Mark Vickery
Top Analyst Reports for Apple, Visa, Chevron & Altria

Tuesday, February 6, 2018

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 17 major stocks, including Apple (AAPL), Visa (V), Chevron (CVX) and Altria (MO). 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 >>>

Apple’s shares are up +20.1% over the last one year, outperforming the S&P 500 (up +16.1%) and in line with the Zacks Technology sector (up +20.1%). Apple reported strong earnings and top-line growth in first-quarter 2018. The company’s top-line growth benefited from iPhone X’s higher average selling price (ASP), which offset sluggish unit sales growth. Paid subscriber base grew in the Services segment, which reflected strength in portfolio.

Going forward, the Zacks analyst thinks Apple’s foray into fast-growing technologies like autonomous vehicles and artificial intelligence (AI) & AR/VR will drive growth in the long haul. Moreover, Apple’s new investment plan will boost its subscription-based services business and put an end to the criticism it is facing for not creating enough jobs in the United States. However, sluggish demand for iPhone X remains a concern amid intensifying competition from cheaper Chinese handset-makers.

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

Shares of Buy-rated Visa have marginally outperformed the Zacks Financial Transaction Services industry over the last one year (+35.5% vs. +34.9%). Visa’s first-quarter fiscal 2018 results beat earnings estimates and were up year over year. Growth of key business drivers, payments volume, cross model volume and process transactions remained strong and stable across the globe.

Numerous strategic acquisitions and alliances, technology upgrades and effective marketing have paved the way for the company's long-term growth that have led to consistent revenue growth over the past several years. Visa is well poised to gain from the growing electronic payment processing and strong international business. A solid balance sheet ensures effective capital deployment.

The stock has seen the Zacks Consensus Estimate for current-year earnings revised 3.1% upward over the last seven days. Nevertheless, high client incentives, forex volatility are some of the headwinds.

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

Chevron’s shares have risen +2.6% in the past six months, underperforming the Zacks Integrated Oil industry's +7.7%, despite being a beneficiary of the recovery in commodity prices. In particular, the stock slumped more than 5% after missing fourth-quarter estimates badly. Nevertheless, Chevron saw strong profit growth in its upstream unit on better price realizations.

More importantly, Chevron was able to bolster its cash from operations -- something investors really want right now. The improving cash position allowed the company to raise its dividend by almost 4%. However, the Zacks analyst remains worried over disappointing earnings in Chevron's international refining business, while signs of headwinds in U.S. production pose additional risk. Hence, investors are advised to wait for a better entry point before buying shares in the oil major.

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

Shares of Buy-rated Altria have outperformed the Zacks Tobacco industry in the last six months (+0.1% vs. -6.4%), aided by expansion in the smokeless products category. Altria has been progressing well with expansion in the smokeless products category, which has helped it surpass the industry in the past six months.

Notably, the company’s flagship MarkTen brand is now a leading U.S. e-vapor brand, with a substantial retail market share. These factors fueled Altria’s smokeless product revenue in fourth-quarter 2017, wherein earnings kept its stellar year-over-year growth trend intact. Results were backed by solid pricing, higher OCI and lower tax rates, stemming from recent tax reforms.

However, rising health consciousness and stern government regulations to curb tobacco consumption has been hurting cigarette volumes and denting Altria’s top line for quite some time. Moreover, the Wine category remains sluggish due to stiff competition. Nonetheless, investments in key growth areas, efforts to lift Marlboro’s share and expected gains from tax reforms led to a robust earnings view.

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

Other noteworthy reports we are featuring today include Anthem (ANTM), Schwab (SCHW) and Roche (RHHBY).

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

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>>>

Today's Must Read

Robust iPhone X ASP, Services Strength Drives Apple (AAPL)

Strong International Business, Balance Sheet Aids Visa (V)

Chevron (CVX) Buoyed by Cash Flow Amid U.S. Output Headwind

Altria (MO) to Benefit From Strength in Smokeless Products

Featured Reports

Rising Rates, Focus on Trading Business Aid Schwab (SCHW)

Per the Zacks analyst, higher interest rates and Schwab's aggressive efforts to enhance trading revenues will support profitability. Also, its low-cost capital structure will continue to aid growth.

Anthem (ANTM) Grows on Rising Enrolment, Investment Income

Per the Zacks analyst, Anthem's top line has been continuously appreciating on increasing membership. Growing investment income driven by recent interest rate hikes also bolsters the top line.

Roche (RHHBY) Boosted By New Drugs, Legacy Drugs Decline

Per the Zacks analyst, approval of new drugs and a potential label expansion of existing drugs bode well for Roche as its legacy drugs like Herceptin, MabThera are facing competition from biosimilars.

FMS Deals, Strategic Buyouts to Boost L3 Technologies (LLL)

Per the Zacks analyst, L3 Technologies continues to enjoy a steady flow of foreign military sales deals.

Higher Revenues & Volume Growth Buoy C.H. Robinson (CHRW)

The Zacks analyst is impressed by growth at C.H. Robinson on the top-line front. Notably, increased pricing and volume growth across most transportation sectors are driving the top line.

Acquisitions, E-Commerce Aid Packaging Corporation (PKG)

Per the Zacks analyst, Packaging Corporation will gain from rising box demand fueled by e-commerce growth. The Sacramento Container buyout will enhance its geographic presence.

GEAR Up Initiatives to Drive Comerica's (CMA) Financials

Per the Zacks analyst, Comerica's focus on driving long-term efficiency through GEAR Up initiatives is encouraging.

New Upgrades

Altria (MO) to Benefit From Strength in Smokeless Products

The Zacks analyst is optimistic about Quest Diagnostics' seven strategic acquisitions in 2017 which should enable it to exceed the long-term M&A objective of 1% to 2% top line growth in 2018.

Clorox's (CLX) 2020 Strategy to Aid Sales & Margins Growth

Per the Zacks analyst, Clorox's 2020 Strategy aimed at bolstering growth for the improvement of categories and overall market share bodes well. This is likely to boost sales and margins going forward.

International Paper (IP) Aided by Solid Industrial Packaging

Per the Zacks analyst, International Paper envisions a large opportunity in North America within its industrial packaging businesses, which continue to generate the best margins in the industry.

New Downgrades

Trimble (TRMB) Grapples with Competition; Expenses A Concern

The Zacks analyst believes that higher expenses on acquisitions are weighing on Trimble's bottom line. Also, increasing competition in the Geospatial market and weakness in Europe remain concerns.

Aerie's (AERI) Lead Drug Rhopressa Faces Stiff Competition

Per the Zacks analyst, Rhopressa faces stiff competition from established branded and generic pharmaceutical companies, and hence will face a tough time in gaining market share.

Rising Costs & Limited Hospital Spending Hurt Omnicell (OMCL)

The Zacks analyst is worried about Omnicell's rising costs from Aesynt integration and XT series launch costs. Also, limited hospital capital spending might affect the uptake of Omnicell's solutions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Visa Inc. (V) : Free Stock Analysis Report
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
Roche Holding AG (RHHBY) : Free Stock Analysis Report
Altria Group (MO) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Anthem, Inc. (ANTM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research