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Top Stock Reports for ExxonMobil, Starbucks & Diageo

Mark Vickery

Thursday, December 5, 2019

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 ExxonMobil (XOM), Starbucks (SBUX) and Diageo (DEO). 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 >>>

ExxonMobil’s shares have outperformed the Zacks Integrated International Oil industry year to date (0.7% vs. -4.3%). The Zacks analyst believes that ExxonMobil’s bellwether status in the energy space and optimal integrated capital structure have helped it come up with industry-leading returns.

Moreover, the management’s track record of capex discipline across the commodity price cycle make it a relatively lower-risk energy sector play. Notably, the company owns some of the most prolific upstream assets globally, with a number of major projects slated to come online over the next few years. Since 2018, ExxonMobil has made several oil discoveries in offshore Guyana.

The firm estimates 750,000 barrels of oil production per day from the region by 2025. However, the integrated energy player’s downstream & chemical units significantly underperformed in the first nine months of 2019. The units are unlikely to recover in the fourth quarter owing to scheduled maintenance activities.

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

Shares of Starbucks have lost 10.8% in the past three months against the Zacks Food & Restaurants industry’s fall of 9.8%. The Zacks analyst believes that Starbucks’ operating fundamentals such as solid global footprint, successful innovations, best-in-class loyalty program and digital offerings remain tailwinds.

The company recently, reported fourth-quarter fiscal 2019 results, wherein earnings met the Zacks Consensus Estimate, after outpacing the same for five straight quarters. Meanwhile, revenues surpassed the consensus mark during the reported quarter. The biggest takeaway from the quarter was increase in traffic.

The company anticipates global comps growth in the range of 3-4% in fiscal 2020. Meanwhile, Starbucks' business is rapidly growing in China, courtesy of innovative store designs and the success of the MSR program.

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

Diageo's shares have lost 5.4% over the past six months against the Zacks Alcoholic Beverages industry's fall of 1.6%. The Zacks analyst believes that the company’s focus on achieving growth via acquisitions is yielding results.

Diageo has surpassed the industry in the past year, driven by its expansion and innovation strategy. This also aided sales and earnings growth of the company in fiscal 2019. Earnings and sales also improved from robust organic growth, backed by broad-based gain across regions and categories. Diageo remains focused on expanding the fastest-growing premium spirits brands by resource optimization, which should drive growth and boost shareholder value.

The company reiterated its medium-term sales and operating margin growth targets. However, cost inflation and higher marketing expenses partly offset margins, which should continue in fiscal 2020. It expects a slowdown in sales growth in fiscal 2020 due to the lapping of several innovation launches in fiscal 2019.

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

Other noteworthy reports we are featuring today include Fidelity National Information Services (FIS), Sony (SNE) and Colgate-Palmolive (CL).

More Stock News: This Is Bigger than the iPhone!

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Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

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Mark Vickery
Senior Editor

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) Banks on Offshore Guyana Oil Discoveries

Starbucks' (SBUX) Strong Global Footprint to Drive Growth

Diageo's (DEO) Focus on Premium Brands to Boost Growth

Featured Reports

Digitization Aids Fidelity (FIS) Revenues, Competition A Woe

Per the Zacks analyst, digitization and superior product portfolio aids Fidelity's revenues. Moreover, strategic acquisitions bolster its growth prospects.

Sony (SNE) Poised to Benefit From Holistic Growth Model

Per the Zacks analyst, Sony is likely to benefit from its holistic growth model, backed by an attractive business portfolio and healthy traction in Music & Financial Services unit.

Colgate's (CL) Innovative Product-Lines to Boost Top Line

Per the Zacks analyst, Colgate's better pricing, strategic marketing, innovative product launches along with relaunch of Colgate Total and Hill's Science Diet are likely to contribute to top line.

General Motors (GM) to Ride on High SUV Demand Amid Tariffs

Healthy demand for trucks, SUVs & crossovers is boosting General Motors' sales.

Growing Merchant Base Benefits Shopify's (SHOP) Prospects

Per the Zacks analyst, Shopify gains from an expanding merchant base.

Retail Loan Growth Aid ICICI Bank (IBN), High Costs a Woe

Per the Zacks analyst, ICICI Bank is poised for growth supported by continued rise in retail loans and a stable funding base.

Cost & Productivity Actions Aid Dow (DOW) Amid Demand Woes

While Dow faces a challenging demand environment in certain markets including agriculture and automotive, it should gain from cost synergy savings and productivity initiatives, per the Zacks analyst.

New Upgrades

Vertex's (VRTX) Triple Combo CF Pill Key to Growth in 2020

Per the Zacks analyst, Vertex's new triple combo cystic fibrosis (CF) pill, Trikafta, should drive 2020 sales growth. Reimbursement approval in England/France for its CF drugs removes a key overhang.

High Demand of 5G Design & Test Solutions Aid Keysight (KEYS)

Per the Zacks analyst, Keysight is benefiting from robust adoption driven by high demand for 5G design and test solutions primarily from telecom vendors, and strong pipeline for new business bookings.

Personal Care Launch, Strategic Buyouts Aid Amedisys (AMED)

Per the Zacks analyst, Amedisys' rising customer base from RoseRock Healthcare and Compassionate Care Hospice buyouts, solid show by personal care and home health and hospice are major growth drivers.

New Downgrades

VMware (VMW) Hurt By Rising Spending Amid Stiff Competition

Per the Zacks analyst, heavy spending on hybrid cloud subscription and SaaS portfolio amid intensifying competition hurts VMware's profitability.

Weakness in Manufacturing Market to Hurt Emerson's (EMR) Sales

Per a Zacks analyst, Emerson (EMR) sales will likely be adversely hurt by weakness in the global discrete manufacturing market. Also, high costs and forex woes to remain concerns.

Pricing Volatility, Plant Outages to Hurt Methanex (MEOH)

Per the Zacks analyst, Methanex is exposed to a volatile methanol pricing environment partly due to trade tension. Also, production outages are affecting its operations.

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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Sony Corporation (SNE) : Free Stock Analysis Report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Colgate-Palmolive Company (CL) : Free Stock Analysis Report
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