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Top Analyst Reports for Exxon Mobil, AT&T & Disney

Mark Vickery

Monday, January 6, 2020

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 (XOM), AT&T (T) and Disney (DIS). 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 >>>

Exxon Mobil’s shares have outperformed the Zacks Integrated International Oil industry over the past year (-1.7% vs. -2.8%). The Zacks analyst believes that ExxonMobil’s bellwether status in the energy space and optimal integrated capital structure have helped it come up with industry-leading returns.

Moreover, the management’s track record of capex discipline across the commodity price cycle make it a relatively lower-risk energy sector play. The company owns some of the most prolific upstream assets globally, with a number of major projects slated to come online over the next few years.

Notably, ExxonMobil has made 15 oil discoveries in offshore Guyana. The firm estimates 750,000 barrels of oil production per day from the region by 2025.

However, the integrated energy player’s downstream & chemical units significantly underperformed in the first nine months of 2019. The units are unlikely to have recovered in the fourth quarter owing to scheduled maintenance activities.

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

Shares of AT&T have gained +3.7% in the past three months against the Zacks Wireless National industry's rise of +1.5%. The Zacks analyst believes that the company’s three-year financial framework, which is expected to drive significant improvement in margins and bottom-line growth with sustained investments and debt reduction.

It aims to deploy a standards-based, nationwide mobile 5G network in early 2020. AT&T’s 5G Evolution technology is live in more than 200 markets, which is expected to increase significantly in the near future.

The company anticipates gaining a competitive edge over rivals through edge computing services and healthy dividend payout. However, AT&T is witnessing a steady decline in linear TV subscribers and legacy services.

Its wireline division is facing loss in access line due to competitive pressure from VoIP service providers. As the company tries to woo customers with discounts, freebies and cash credits, margin pressures tend to soar.

(You can read the full research report on AT&T here >>>)

Disney's shares have gained +3.9% over the past six months against the Zacks Media Conglomerates industry's rise of +4.5%. The Zacks analyst believes that Disney is expected to benefit from its solid slate of theatrical releases in fiscal 2020.

The upcoming movies, including MulanFree Guy and Black Widow, are anticipated to aid the Studio Entertainment top line. The success of Frozen 2 and Star Wars: The Rise of Skywalker is positive for the company’s first-quarter fiscal 2020 results.

Moreover, growing popularity of Disney+ makes it a key catalyst for the company’s prospects. However, the company anticipates higher operating losses in the DTC & International segment due to the ongoing investments. Moreover, increasing operating expenses related to domestic parks and resorts are expected to negatively impact profitability.

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

Other noteworthy reports we are featuring today include Coca-Cola (KO), Netflix (NFLX) and United Parcel Service (UPS).

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

ExxonMobil (XOM) Banks on Guyana Oil Finds, Chemicals Hurt

AT&T (T) Rides on 5G Deployment, Sound Capital Allocation

Strong Slate of Movies, Disney+ Adoption to Aid Disney (DIS)

Featured Reports

Investment & Innovation Mirror Coca-Cola's (KO) Core Strength

Per the Zacks analyst, innovation and investment in core categories and brands have been the key focus area for Coca-Cola, which has led to significant expansion of retail value share.

Robust Content to Aid Netflix (NFLX) Amid Stiff Competition

Per the Zacks analyst, Netflix's robust content portfolio is expected to aid subscriber addition despite increasing competition in the streaming space.

E-Commerce, Dividends & Buybacks Aid UPS Amid Cost Woes

The Zacks Analyst is impressed with UPS' efforts to reward its shareholders. Growth in e-commerce is an added positive.

Diageo's (DEO) Focus on Premium Brands to Boost Growth

Per the Zacks analyst, Diageo's focus on expanding the fastest-growing premium spirits brands through resource optimization and acquisitions is likely to drive growth and boost shareholder value.

Loan Growth Supports U.S. Bancorp (USB), Cost Woes Linger

Per Zacks analyst, U.S. Bancorp is well poised to enhance interest income driven by steady growth in loans and economy recovery aiding interest rates.

Sony (SNE) Rides on Stringent Cost Reduction Initiatives

Per the Zacks analyst, Sony is likely to benefit from its resilient business model, backed by cost reduction strategies and diversified portfolio of products and services amid intense price wars.

Investments Aids Northrop (NOC), High Operating Expenses Hurt

Per the Zacks Analyst, Northrop Grumman's regular investments in growth projects bolsters its future prospects.

New Upgrades

Western Union (WU) Rides High on Expanding Digital Platform

Per the Zacks analyst, steady investment in Western Union's platform helps the company grow its revenue base and stay ahead of the technological advancement in the industry.

Exiting Hunt Business to Bolster DICK'S Sporting (DKS) Comps

Per the Zacks analyst, DICK'S Sporting is on track with the removal of the hunt category from its Field & Stream stores and its replacement with more compelling assortments. This should boost comps.

TC PipeLines (TCP) to Gain from Gas Transportation Assets

The Zacks analyst believes that TC Pipelines' enviable position as a supplier of gas from the prolific Utica and the Marcellus shale basins in the U.S. provides it with ample growth opportunities.

New Downgrades

Knight-Swift (KNX) Stung by Truckload Capacity Oversupply

The Zacks Analyst is worried about the lackluster freight demand in the United States. As a result, excess supply of truckload capacity is hurting Knight-Swift's trucking segment.

Dull Animal Protein Sales, Currency Woes Ail Neogen (NEOG)

The Zacks analyst is worried about continued weakness in the global animal protein market hampering the company's topline growth.

Declining Demand, Usage of Clean Fuel Hurt Arch Coal (ARCH)

Per the Zacks analyst Arch Coal's long-term prospects are adversely impacted by ongoing reduction in coal demand and higher usage of clean energy sources to produce electricity.

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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
AT&T Inc. (T) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
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