Top Research Reports for Chevron, NextEra Energy & Chubb
Monday, July 24, 2023
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 Corporation (CVX), NextEra Energy, Inc. (NEE) and Chubb Limited (CB). 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 Chevron have gained +10.7% over the past year against the Zacks Oil and Gas - Integrated - International industry’s gain of +20.8%. The company is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up.
America’s No. 2 energy firm’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin. As a reflection of these positives, we saw CVX’s EPS jump 132% in 2022. However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially.
The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of energy produced.
(You can read the full research report on Chevron here >>>)
NextEra Energy shares have gained +0.4% over the past six months against the Zacks Utility - Electric Power industry’s gain of +2.6%. The company continues to expand its operations through organic projects and strategic acquisitions. NextEra has many renewable projects in its backlog and their completion will reduce emissions.
The merger of Gulf Power and FPL strengthens NextEra’s position in Florida. FPL’s customer base is expanding as Florida’s economy improves and continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations and efficient debt management acts as a tailwind. NEE is expanding its operation in water space through acquisition.
However, due to the nature of its business, it is subject to complex regulations. Risk in operating nuclear units, unfavorable weather conditions and an increase in supply costs adversely impact earnings.
(You can read the full research report on NextEra Energy here >>>)
Shares of Chubb have gained +8.6% over the past year against the Zacks Insurance - Property and Casualty industry’s gain of +17.4%. The company benefits from a suite of compelling products as well as services. It is focusing to capitalize on the potential of middle-market businesses. Several distribution agreements have expanded its network, boosting market presence.
Chubb made investments in various strategic initiatives that paved the way for long-term growth. Strong capital position helps it boost shareholder value. Its inorganic growth story helps it to achieve a higher long-term return on equity.
It boasts a strong capital position with sufficient cash generation capabilities. It expects quarterly adjusted investment income to be between $1.2 billion to $1.22 billion in the second quarter of 2023. However, exposure to cat loss induces underwriting volatility. High expenses weigh on margin expansion.
(You can read the full research report on Chubb here >>>)
Other noteworthy reports we are featuring today include Bayer Aktiengesellschaft (BAYRY), Newmont Corporation (NEM) and United Rentals, Inc. (URI).
Director of Research
Sheraz Mian
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
Chevron (CVX) to Gain from Massive Permian Acreage
NextEra (NEE) Gains from Steady Investment, Renewable Focus
Better Pricing, New Business Growth Drive Chubb Limited (CB)
Featured Reports
New Drugs Boost Bayer (BAYRY) Sales, Pricing Issue a Concern
Per the Zacks analyst, new drugs like Nubeqa and Kerendia boosts Bayer. However, the Crop Science division is facing pricing challenges for glyphosate-based products which will impact performance.
Newcrest Buyout Aid Newmont (NEM) Amid Cost Woes
While Newmont is facing challenges with rising costs impacting earnings, the acquisition of Newcrest offers a positive outlook for the company's future, per the Zacks Analyst.
Growing Product Uptake, Strategic Pacts Aid Illumina (ILMN)
The Zacks analyst is impressed with Illumina actively strengthening its position in high-throughput sequencing with the strong uptake of NovaSeq X. The Myriad Genetics partnership should add value.
Strong Storage, Data Center Demand Aids Iron Mountain (IRM)
Per the Zacks analyst, Iron Mountain is well-poised to benefit from the robust demand for its storage and records management business, data center expansions and a solid balance sheet position.
Twilio (TWLO) Banks on Growing Active Customer Accounts
Per the Zacks analyst, Twilio's continued focus on introducing products as well as its go-to-market sales strategy is helping it grow its active customer accounts, which is driving top-line growth.
Knight-Swift (KNX) Rides on Dividend Amid Soft Freight Demand
The Zacks analyst likes the shareholder-friendly measures adopted by Knight-Swift. However, softness in freight demand hurt Knight-Swift's second-quarter 2023 results.
Growing Demand in Aerospace Segment Benefits Woodward (WWD)
Per the Zacks analyst, Woodward's performance benefits from solid demand in the aerospace segment due to higher commercial OEM. Rising aftermarket sales owing to passenger traffic is a tailwind.
New Upgrades
Strategic Buyouts Boost United Rentals' (URI) Prospects
The Zacks analyst stresses that United Rentals' systematic inorganic strategy will expand its core equipment rental business and trench, power and pump footprint and tool offerings.
Solid Annuity Portfolio and Rates Aid American Equity (AEL)
Per the Zacks analyst, American Equity is set to grow on fixed index, fixed rate annuity products guarantying principal protection, better rates, guaranteed lifetime income & alternative payout option
E-Commerce Expansion to Bolster Carter's (CRI) Performance
Per the Zacks analyst, Carter's is poised to gain from the strengthening of e-commerce capabilities through investments to speed up deliveries, along with a broad array of online products.
New Downgrades
Geopolitical Risk, Competition Ail TotalEnergies (TTE)
Per the analyst TotalEnergies (TTE) presence across the globe exposes it to geopolitical risk and rising competition among the international energy majors is also a headwind.
United Natural (UNFI) Hurt by High Costs, Supply-Chain Woes
Per the Zacks analyst, United Natural is battling cost inflation and supply-chain woes. Management cut fiscal 2023 earnings view as it expects similar profitability trends for the rest of the year.
Weak Biotechnology and Diagnostics Units Hurt Danaher (DHR)
Per the Zacks analyst, Danaher is experiencing weakness across its Biotechnology and Diagnostics Units due to decrease in the sale of COVID-related products. Forex woes are an added concern.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Chubb Limited (CB) : Free Stock Analysis Report
Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report
Newmont Corporation (NEM) : Free Stock Analysis Report
United Rentals, Inc. (URI) : Free Stock Analysis Report
