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Top Stock Reports for Walmart, Chevron & Mastercard

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·6 min read
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Friday, May 13, 2022

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 Walmart Inc. (WMT), Chevron Corporation (CVX), and Mastercard Incorporated (MA). 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 >>>

Walmart shares have held up very well in the ongoing market downturn, with the stock now up +1.9% in the year-to-date period vs. the -20.6% decline for the S&P 500 index. The Zacks analyst believes that the company continues to gain on its robust omnichannel efforts and last-mile delivery capabilities. With more customers and members returning to stores and clubs, demand seems to be strong. The Zacks analyst expects these positives to be on full display in the company's quarterly earnings reprot on Tuesday (May 17th). 

 

Walmart incurred high costs related to supply chain, wages, and COVID-19 during the fourth quarter of fiscal 2022, and expects some of these to linger through part of this year, including the coming quarterly release. The company envisions operating income and earnings per share to decline in the first quarter, as it cycles stimulus gains witnessed last year, along with higher wages this year.

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

Shares of Chevron have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+59.8% vs. +41.7%). The Zacks analyst believes that based on a slew of tailwinds, it seems poised for further capital appreciation. The supermajor is considered one of the best-placed integrated oil firms to achieve sustainable production growth. America’s No. 2 energy company’s project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin.

The company’s Noble Energy takeover expanded its footprint in the region and the DJ Basin along with the addition of cash generating offshore assets in Israel. In shareholder friendly moves, the integrated major recently hiked its dividend and boosted the stock repurchase program. Consequently, Chevron is viewed as a preferred energy major to own now.

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

Mastercard shares have declined -8.0% over the past year against the Zacks Financial Transaction Services industry’s decline of -37.1%. The Zacks analyst believes due to steep operating expenses margins might stress. High rebates and incentives may weigh on net revenues. Nevertheless, the company’s profit levels are rising thanks to increasing consumer spending. Numerous acquisitions are helping it to grow addressable markets and drive new revenue streams.

The COVID-19 crisis accelerated the use of electronic payments with much greater adoption of digital and contactless solutions. The situation provides an opportunity for Mastercard's business to expedite its shift to the digital mode. The company is well-poised to gain from steady cash-generating abilities. A strong capital position allows the company to pursue acquisitions and deploy capital. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include Honeywell International Inc. (HON), SAP SE (SAP), and Caterpillar Inc. (CAT).

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

Walmart (WMT) Gains on E-Commerce Efforts, Hurt by Cost Woes

Chevron (CVX) to Gain from Massive Permian Acreage

Accretive Buyouts, Strong Cash Position Aid Mastercard (MA)

Featured Reports

Solid Demand Aids Honeywell (HON), Warehouse Automation Ails
Per the Zacks analyst, solid demand for Honeywell's advanced sensing technologies and productivity solutions will lend momentum to the company. Weakness in the warehouse automation unit is concerning.

Solid Momentum in Cloud Business Driving SAP's Performance
Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. However, weak uptake of software licenses and support offerings is a concern.

Strong Demand to Support Caterpillar (CAT) Amid High Costs
Per the Zacks analyst, strong demand in its end markets will drive Caterpillar's top-line performance and help negate the impact of inflated input costs and supply chain issues on its margins.

Operating Prowess Aids Waste Management (WM) Amid High Debt
The Zacks Analyst is impressed with Waste Management's solid operational performance which has helped it strengthen its cash flow position. A debt-heavy balance sheet remains a concern.

Strategic Buyouts Aid Capital One (COF), Asset Quality Ails
Per the Zacks analyst, strength in credit card businesses, higher rates and strategic acquisitions will support Capital One. However, worsening asset quality and mounting costs are major concerns.

Cenovus (CVE) to Gain From Alberta Tucker Asset Divestment
The Zacks analyst is upbeat about Cenovus' divestment of the Tucker thermal asset in Alberta, which will help reduce the debt burden and raise shareholder returns.

Solid Investments Aid PG&E Corp (PCG) Amid Rising Costs
Per the Zacks analyst, consistent investments boost PG&E Corp's infrastructure and customer reliability. Yet, the stock is incurring incremental operating costs due to the pandemic.

New Upgrades

Sysco's (SYY) Results Benefit From Recipe for Growth Program
Per the Zacks analyst, Sysco's Recipe for Growth has been aiding. This includes enhancing customers' experience via digital tools; improving supply chain and having team-based selling among others.

Paylocity Holding (PCTY) Benefits From Growing Customer Base
Per the Zacks Analyst, Paylocity Holding is benefiting from its differentiated employee strategy, comprehensive product offerings and on-demand pay facility, that are helping it win new customers.

Adtalem (ATGE) Rides on Aim to be Leading Healthcare Provider
Per the Zacks analyst, Adtalem's post licensure nursing programs, buyout synergies and strategic divestures are helping it to become a pure play, leading provider of talent to the healthcare industry.

New Downgrades

Higher Input Costs, China Slowdown Hurt DuPont (DD)
Per the Zacks analyst, higher raw material costs due to supply-chain issues will weigh on DuPont's margins. Sales in its Interconnect Solutions unit will also be hurt by the slowdown in China.

PayPal (PYPL) Suffers From Softness in International Market
Per the Zacks analyst, PayPal's declining international revenues owing to weakening momentum in the international market, are hurting its top-line growth.

Declining LPD Sales, Mounting Expenses Hurt IDEXX (IDXX)
The Zacks analyst is discouraged by reduced sales performance across IDEXX's Livestock, Poultry and Dairy arm. Escalating operating expenses too continue to build pressure on the bottom line.


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
 
Chevron Corporation (CVX) : Free Stock Analysis Report
 
Mastercard Incorporated (MA) : Free Stock Analysis Report
 
Caterpillar Inc. (CAT) : Free Stock Analysis Report
 
Honeywell International Inc. (HON) : Free Stock Analysis Report
 
Walmart Inc. (WMT) : Free Stock Analysis Report
 
SAP SE (SAP) : Free Stock Analysis Report
 
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Zacks Investment Research

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