Top Stock Reports for Amazon, Chevron & Citigroup
Thursday, February 25, 2021
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 Amazon.com (AMZN), Chevron (CVX) and Citigroup (C). 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 >>>
Amazon shares have outperformed the broader S&P 500 index over the past year (+58.6% vs. +28.1%), though the stock has lagged lately in solidarity with other large-cap Tech stocks in response to the uptrend in long-term interest rates. The Zacks analyst remains optimistic about the company's long-term prospects on the back of solid Prime momentum owing to ultrafast delivery services and an expanding original content portfolio.
The company reported impressive fourth-quarter results wherein both earnings and revenues topped the estimates and grew on a year-over-year basis. Robust holiday performance of the company was a major positive. Further, strengthening AWS services and its growing adoption rate contributed well.
However, accelerating coronavirus related expenses remain headwinds for the company’s margin expansion in the near term. Also, rising cloud competition from Microsoft and Google poses a risk.
(You can read the full research report on Amazon here >>>)
Shares of Chevron have gained +22% in the last six months against the Zacks Integrated Oil industry’s gain of +30.2%. The Zacks analyst believes that Chevron’s Noble Energy takeover has expanded its footprint in the region and the DJ Basin along with the addition of cash-generating offshore assets in Israel.
While the company has struggled with depressed demand stemming from the coronavirus pandemic, it has reiterated its commitment to its dividend on a number of occasions. Consequently, Chevron is viewed a preferred energy major to own now.
Furthermore, it seems one of the best-placed global integrated oil firms to achieve sustainable production ramp-up. America’s No. 2 energy company’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin.
(You can read the full research report on Chevron here >>>)
Citigroup shares have gained +20.1% over the past three months against the Zacks Major Regional Banks industry’s gain of +24.5%. The Zacks analyst believes that Citigroup’s streamlining efforts, along with strategic investments in core business, bode well.
Also, net interest revenues will likely be supported by loan growth and mix, despite the low interest-rate environment. Further, manageable debt level makes Citigroup less likely to default interest and debt repayment obligations in case of any economic downturn.
Notably, the company announced the resumption of buybacks in first-quarter 2021. However, pending litigation issues might keep legal expenses elevated for the company. Additionally, a subdued consumer banking business might dent Citigroup's fee income base to some extent.
(You can read the full research report on Citigroup here >>>)
Other noteworthy reports we are featuring today include AT&T (T), Medtronic (MDT) and Morgan Stanley (MS).
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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
Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)
Chevron (CVX) Boosts Permian Position with Noble Buy
Focus on Core Operations Aid Citigroup (C), Legal Woes Linger
Featured Reports
AT&T (T) Rides on Solid Wireless Traction, 5G Deployment
Per the Zacks analyst, AT&T is likely to benefit from a solid subscriber growth on the back of a resilient business model and nationwide 5G deployment.
Medtronic (MDT) Reports Solid Market Share Gain amid the Pandemic
The Zacks analyst believes that, Medtronic's market share gain across all its businesses should compensate for the loss generated from the pandemic-led decline in procedure volumes.
Strategic Buyouts to Support Morgan Stanley's (MS) Profits
Per the Zacks analyst, inorganic expansion initiatives with an aim to focus on less capital-markets dependent operations and high loan balance will support Morgan Stanley in the quarters ahead.
Lowe's (LOW) Strategic Efforts & Online Business Bode Well
Per the Zacks analyst, Lowe's is benefiting from its growth endeavors like total home strategy and improved digital efforts.
Micron (MU) Benefits from Growing Memory-Chip Demand
Per the Zacks analyst, Micron is growing on solid memory-chip demand from PC manufacturers and data-center operators due to the current work-and-learn-from-home trend.
New Products, Acquisition Fuel Zoetis (ZTS) Amid Slowdown
Per the Zacks analyst, Zoetis companion animal business driven by Apoquel and Simparica should maintain growth amid challenges for beef and dairy customers.
Residential Demand Aids Vulcan (VMC), Weather Woes Stay
Per the Zacks analyst, Vulcan has been benefiting from robust demand in residential market.n
New Upgrades
Sony (SNE) Rides on Robust Game & Network Services Segment
Per the Zacks analyst, Sony's Game & Network Services segment is benefiting from an increase in game software sales and PlayStation Plus subscriptions along with the launch of PlayStation 5.
Deere (DE) to Grow on Innovation & Improving End Markets
Per the Zacks analyst, Deere will gain on its focus on launching products with advanced technologies and features as well as improving agricultural markets and strong construction demand.
Steady Tower Demand Buoys Crown Castle (CCI), Debt Woes Linger
Per the Zacks analyst, carrier 5G infrastructure expansion and network enhancement are driving the demand for Crown Castle's assets.
New Downgrades
Twilio's (TWLO) Profitability To Hurt By Elevated Expenses
Per the Zacks analyst, elevated investment toward enhancing sales capabilities to gain enterprise customers and grab larger market share to weigh on Twilio's bottom-line results in the near-term.
Cat Exposure, Rising Expenses Ail American Financial (AFG)
Per the Zacks analyst, American Financial's exposure to catastrophes inducing volatility in earnings and increase in expenses weighing on margin expansion pose near-term headwinds.
Stiff Competition, Business Seasonality Ail Chemed (CHE)
The Zacks analyst is worried about Chemed facing fierce competition in the field of sewer, drain and pipe cleaning and plumbing repair. Seasonality in VITAS revenues is an added issue.
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Morgan Stanley (MS) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
Citigroup Inc. (C) : Free Stock Analysis Report
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