The Zacks Analyst Blog Highlights Chevron, Verizon Communications, Eaton, NVIDIA and Ford Motor
For Immediate Release
Chicago, IL – March 11, 2024 – 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: Chevron Corp. CVX, Verizon Communications Inc. VZ Eaton Corp. plc ETN, NVIDIA Corp. NVDA and Ford Motor Co. F.
Here are highlights from Friday’s Analyst Blog:
Top Stock Reports for Chevron, Verizon and Eaton
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 Corp., Verizon Communications Inc. and Eaton Corp. plc. 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 underperformed the Zacks Oil and Gas - Integrated - International industry over the past year (-4.6% vs. +0.9%). The Zacks analyst believes based on a number of near-term challenges, Chevron appears to be a risky bet. Over the past year, the energy major has seen its stock price decline more than 10% compared with the S&P 500's increase of 21%.
The supermajor – with 60% liquids-weighted production – is highly exposed to the perils of oil price fluctuations. The drop in downstream segment earnings as a fallout of lower margins is a concern too while reserve replacement ratio remains weak, indicating challenges in replenishing produced energy.
Moreover, it has been experiencing an increase in costs as a percentage of revenue. Finally, Chevron has been a laggard compared to its European peers to jump into the clean energy bandwagon. Considering these factors, the company is unlikely to return to favor anytime soon. This calls for a bearish stance on Chevron.
(You can read the full research report on Chevron here >>>)
Verizon's shares have outperformed the Zacks Wireless National industry over the past year (+13.3% vs. +7.5%). The company reported healthy fourth-quarter 2023 results, with the top and bottom line beating the respective Zacks Consensus Estimate, driven by significant 5G adoption and wireless traction.
It is offering various mix-and-match pricing in both wireless and home broadband plans, which has led to solid client additions. Focus on emerging growth services like cloud, security and professional services will likely reap long-term benefits. Its mmWave footprint delivers game-changing experiences for the densest parts of the network.
However, lower wireline and wireless equipment revenues are major concerns. Huge promotional expenses and lucrative discounts to expand its customer base are weighing on margins. High capital expenditures for network upgrade and deployment of fiber assets across the country are headwinds. Muted guidance for 2024 is somewhat worrisome.
(You can read the full research report on Verizon here >>>)
Shares of Eaton have outperformed the Zacks Manufacturing - Electronics industry over the past year (+72.1% vs. +41.9%). The company's ongoing research and development are allowing the company to develop new products to provide efficient power management solutions.
It will benefit from improving end-market conditions, increasing demand from the new AI data center and contributions from its organic assets. Eaton is expanding via acquisitions and its rising backlog shows demand for its products. Its strategy to manufacture in the region of its end market has helped it cut costs.
Yet, Eaton's global operations expose it to unpredictable currency translation, cyber security threats, changes in tax rates and security breaches, which might impact operations. The shortage of raw materials and supplier insolvencies might impact production and operations.
(You can read the full research report on Eaton here >>>)
Other noteworthy reports we are featuring today include NVIDIA Corp. and Ford Motor Co..
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.
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
Ford Motor Company (F) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
