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Top Research Reports for Exxon Mobil, Marsh & McLennan & Chubb

·6 min read

Thursday, September 1, 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), Marsh & McLennan Companies, Inc. (MMC) 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 >>>

Exxon Mobil shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+77.5% vs. +51.0%). The company’s bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play.

Exxon Mobil made three oil discoveries in the Stabroek Block, which will increase its recoverable resources estimates to 11 billion oil-equivalent barrels. It also has a strong presence in the prolific Permian Basin, where it expects to boost production volumes by 25% in 2022.

The company reported strong second-quarter earnings, owing to higher realized commodity prices and solid refinery utilization. The company generated a cash flow of $20.9 billion from operations and asset divestments in the second quarter. Also, it has significantly lower debt exposure than other integrated majors. Hence, ExxonMobil is considered a preferred energy firm to own now.

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

Marsh & McLennan shares have modestly outperformed the Zacks Insurance - Brokerage industry over the past year (+2.4% vs. +2.0%) on the back of significant investments and acquisitions made within its operating units, the launch of new products, digital capabilities and branching out into new businesses.

Its increased stake in Marsh India will further buoy growth. Revenues have been increasing thanks to a wide geographic presence and strong client retention. The Risk and Insurance Services unit has been contributing to its revenue growth. It has plans to deploy roughly $4 billion capital in 2022 through dividends, buyouts and share repurchases.

However, its escalating operating expenses might weigh on the margins. High debt levels remain a concern. Its valuation remains stretched at the current level. As such, the stock warrants a cautious stance.

(You can read the full research report on Marsh & McLennan here >>>)

Chubb's shares have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+5.1% vs. -8.1%), with the outperformance reflecting benefits from a suite of compelling products as well as services. Its inorganic growth story helps it to achieve a higher long-term ROE. It boasts a strong capital position, with sufficient cash generation capabilities.

It is focusing to capitalize on the potential of middle-market businesses. Several distribution agreements have expanded its network, boosting market presence. It made investments in various strategic initiatives that paved the way for long-term growth.

Chubb’s strong capital position helps it boost shareholder value. Given the rise in interest rate, it expects adjusted investment income for the third quarter of 2022 to be $980 million to $1 billion. However, exposure to cat loss induces volatility in underwriting results. Elevated expenses weigh on operating inc

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

Other noteworthy reports we are featuring today include Emerson Electric Co. (EMR), CrowdStrike Holdings, Inc. (CRWD), and Cheniere Energy, Inc. (LNG).

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

ExxonMobil (XOM) Gains From Discoveries at Stabroek Block

Rising Revenues Aid Marsh & McLennan (MMC) Despite Cost Woes

Better Pricing, New Business Growth Drive Chubb Limited (CB)

Featured Reports

End Market Strength Drives Emerson (EMR), High Debt Ails
Per the Zacks analyst, strength in Emerson's end markets, including commercial, industrial, food, retail and other non-residential, should drive its revenues. However, a heavy debt load lingers.

CrowdStrike (CRWD) Rides on Product Strength, Acquisitions
Per the Zacks analyst, CrowdStrike is gaining from solid contributions of its growth-oriented products, primarily Falcon platform. Also, strategic buyouts like SecureCircle and Humio are positive.

Grocery-Anchored Assets & Solid Tenant Base Aid Regency (REG)
Per the Zacks Analyst, a premium portfolio of grocery-anchored shopping centers, solid tenant roster and robust development pipeline will aid Regency. However, higher e-commerce adoption is a woe.

Backlog & Federal Funding Aid AECOM (ACM), China Woes Hurt
Per the Zacks analyst, solid federal spending scenario, strong book-to-burn ratio and backlog bode well for AECOM. However, COVID-induced restrictions are concerns for international market like China.

Five Below (FIVE) Focus on Pre-Teen Customers to Fuel Sales
Per the Zacks analyst, Five Below's impressive merchandise, focus on pre-teen customers & pricing strategy should drive sales. However, margin deleverage is a concern.

Strong Demand Aid SunPower (SPWR) Growth, Tariff Impacts Hit
Per the Zacks Analyst, strong demand in residential and commercial markets aid SunPower's growth prospects. Yet, the extended tariff on import of Chinese solar energy equipment, may hurt its earnings.

Haemonetics' (HAE) Hospital Arm Grows Amid Supply Chain Woes
The Zacks analyst is upbeat about Haemonetics' robust sales in the Hemostasis Management and Vascular Closure product lines. Yet, challenges related to freight and raw material costs is concerning.

New Upgrades

Cheniere (LNG) to Gain from Sustained Gas Export Strength
The Zacks analyst believes that being one of the few liquefied natural gas exporters of the U.S., Cheniere Energy is set to capitalize on the sustained strength in shipments to Europe and Asia.

Arista (ANET) Rides on Cloud Market and Diversification
Per the Zacks analyst, Arista is likely to benefit from the expanding cloud networking market driven by scalable infrastructure, and improved diversification across top verticals.

Gartner (IT) Benefits From CEB Acquisition, Advisory Strength
Per the Zacks analyst, the blend of its analyst-driven advisory services with CEBs best practice and talent management insights helps Gartner provide differentiated suite of services portfolio.

New Downgrades

Commodity Costs, High Debt Ail Scotts Miracle-Gro (SMG)
The Zacks analyst is concerned that higher commodity costs will exert pressure on Scotts Miracle-Gro's margins. Its high debt level is another concern.n

Macro Weakness and Supply Troubles Drag Down Seagate (STX)
Per the Zacks analyst, Seagate's performance is likely to be affected by uncertainty prevailing over global macroeconomic conditions along with non-HDD component shortages in the near term.

NVIDIA (NVDA) Hurt by Weakening Demand, Supply Chain Issues
Per the Zacks analyst, NVIDIA is hurt by weakening demand for its gaming chips and ongoing supply-chain issues which are negatively impacting its data center end market business.


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
 
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
 
Emerson Electric Co. (EMR) : Free Stock Analysis Report
 
Chubb Limited (CB) : Free Stock Analysis Report
 
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
 
Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report
 
CrowdStrike (CRWD) : Free Stock Analysis Report
 
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Zacks Investment Research