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The Zacks Analyst Blog Highlights: Amazon, Procter & Gamble, Chevron, United Parcel Service and Raytheon

Zacks Equity Research
The Zacks Analyst Blog Highlights: Amazon, Procter & Gamble, Chevron, United Parcel Service and Raytheon

For Immediate Release

Chicago, IL – April 30, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Amazon AMZN, Procter & Gamble PG, Chevron (CVX), United Parcel Service UPS and Raytheon RTN.

Here are highlights from Monday’s Analyst Blog:

Top Analyst Reports for Amazon, Procter & Gamble and Chevron

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, Procter & Gamble and Chevron. 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’s shares have outperformed the broader market in the past year (the stock is up +24.5% vs. the +10.8% increase for the S&P 500 as a whole). The Zacks analyst thinks Amazon continues to ride on its ecommerce dominance. Its aggressive retail strategies, distribution strength and robust Prime remain key catalysts.

Moreover, rapid adoption of Prime owing to its customer benefits and strengthening grocery services is driving its top-line growth. Further, the company’s growing brick and mortar presence is a tailwind. Additionally, Amazon’s continued momentum in AWS remains a major positive. Increasing AWS regions and its growing adoption will continue to aid Amazon’s cloud dominance.

However, first-quarter 2019 revenue guidance remains disappointing. Further, rising cloud competition from the likes of Microsoft Azure and Google cloud is a significant headwind. Also, heavy investment in fulfillment centers is a concern.

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

Shares of Procter & Gamble outperformed the Zacks Soap and Cleaning Materials industry in the past year, gaining +46.4% vs. +25.7%. The Zacks analyst thinks that this can be attributed to the company’s impressive earnings history. It delivered 16th straight earnings beat in third-quarter fiscal 2019, with sixth sales beat in last seven quarters.

While earnings benefited from its ongoing productivity efforts, strong organic growth with higher shipment volumes and favorable price/mix led to sales growth. Furthermore, management raised its sales guidance for fiscal 2019 and reaffirmed the earnings outlook. The company’s focus on product improvement, packaging and marketing initiatives, and productivity and cost-savings plan too bode well.

However, Procter & Gamble has been witnessing strained margins owing to increased commodity and shipping costs, higher brand investments amid intense competition. Also, adverse foreign currency rates are hurting the company’s top and bottom lines, which may continue in fiscal 2019 as well.

(You can read the full research report on Procter & Gamble here >>>).

Buy-ranked Chevron’s shares have outperformed the Zacks Integrated Oil industry in the past six months (+5.6% vs. -0.9%). Chevron's Q1 earnings were ahead of analysts' expectations, while upstream production exceeded 3 million barrels per day for the second successive quarter.

The Zacks analyst thinks Chevron’s existing oil and gas development project pipeline is among the best in the industry, targeting volume growth of around 4-7% in 2019 thanks to planned expansion in the Permian Basin. Chevron pumped 55% more out of the West Texas shale play in the quarter compared with the same period last year, with production set to soar in coming years.

The company's recently announced $50 billion Anadarko acquisition looks compelling given the access to potentially lucrative Permian Basin acreage, LNG operations in Mozambique, as well as attractive deepwater infrastructure in the GoM. Additionally, the buyout is expected to improve Chevron’s cash flow profile. Therefore, Chevron is a preferred supermajor to own now.

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

Other noteworthy reports we are featuring today include United Parcel Service and Raytheon.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Raytheon Company (RTN) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
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