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The Zacks Analyst Blog Highlights: ConocoPhillips, Dominion Energy and Schwab

Zacks Equity Research
Tracey Ryniec and Sheraz Mian take a look at two highly ranked stocks.

For Immediate Release

Chicago, IL – March 14, 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:ConocoPhillips COP, Dominion Energy D and Schwab SCHW.

Here are highlights from Wednesday’s Analyst Blog:

Top Stock Reports for ConocoPhillips, Dominion and Schwab

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 ConocoPhillips, Dominion Energy and Schwab. 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 >>>

Buy-rankedConocoPhillips’ shares are up +21.6% over the past year, outperforming the Zacks U.S. Integrated Oil industry, which has increased +4.1% over the same period. In terms of production and proved reserves, ConocoPhillips is the largest oil and gas exploration and production (E&P) player in the world.

The Zacks analyst thinks there are significant opportunities for the upstream energy player in the Eagle Ford where it owns about 3,400 undrilled locations. In fact, strong focus on two other prospective resources like Delaware basin and Bakken shale is expected to help ConocoPhillips achieve its target of more than 25% CAGR of production through 2017 to 2019.

The upstream energy player is strongly committed toward returning cash to shareholders as is evident from its $3-billion planned buyback program in 2019. ConocoPhillips is also planning to increase its dividend in 2019 after raising the same by 15% in 2018. On top of that, the balance sheet of ConocoPhillips is significantly less leveraged than the industry it belongs to.

Shares of Dominion Energy have gained +6.2% over the past six months, underperforming the Zacks Electric Power industry, which has increased +10.3% over the same period. The Zacks analyst thinks Dominion Energy is benefiting from its regulated growth projects and synergies from acquisition.

The company’s expansion of electric transmission, natural gas facilities and midstream assets are strong positives. The company completed its merger with SCANA and it is likely to be immediately accretive to earnings. However, Dominion Energy’s future earnings may get affected due to increase in pension expenses and share dilution.

The company and its gas unit’s dependency upon third-party producers for natural gas supply increases risk. Any delay in the ongoing capital projects may impact Dominion Energy’s profitability.

Buy-rankedSchwab’s shares have marginally outperformed the Zacks Investment Brokers industry over the past year, declining -21.4% vs -23.1%. It has an impressive earnings surprise history, having surpassed expectations in each of the trailing four quarters.

The Zacks analyst thinks the company remains well positioned to gain from higher interest rates and its initiatives to strengthen trading income. Also, the company’s efforts to improve operating efficiency will go a long way to support profitability.

While continuously rising operating expenses and the company’s significant dependence on fee based revenues remain major concerns, its efficient capital deployment activities reflect a strong balance sheet position.

Other noteworthy reports we are featuring today include Intuitive Marvell Technology (MRVL) and Vornado Realty Trust (VNO).

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?

From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.

This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.

See Stocks Today >>

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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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Dominion Energy Inc. (D) : Free Stock Analysis Report
 
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
 
ConocoPhillips (COP) : Free Stock Analysis Report
 
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