Yahoo Finance The Zacks Analyst Blog Highlights Walmart, Exxon Mobil, Danaher and GSI Technology
For Immediate Release
Chicago, IL – June 21, 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: Walmart Inc. WMT, Exxon Mobil Corp. XOM, Danaher Corp. DHR and GSI Technology, Inc. GSIT.
Here are highlights from Thursday’s Analyst Blog:
Top Stock Reports for Walmart, Exxon Mobil and Danaher
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., Exxon Mobil Corp. and Danaher Corp., as well as a micro-cap stock GSI Technology, Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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 outperformed the Zacks Retail sector over the past year (+31.5% vs. +23%), with the outperformance notably accelerating following the retail giant's last quarterly release. The company is gaining from its highly diversified business with contributions from various segments, channels and formats. Walmart has been benefiting from an increase in in-store and digital channel traffic due to its robust omnichannel initiatives.
Store-fulfilled delivery sales jumped 50% in the fourth quarter of fiscal 2024. The strategic focus on enhancing delivery services has also been rewarding, as evidenced by the constant increase in the market share for groceries. Upsides like these, along with growth in the advertising business, fueled Walmart's fourth-quarter results and led to an encouraging fiscal 2025 view.
However, the retail landscape continues to be dynamic due to challenges like inflation and volatile consumer spending. High SG&A expenses are also a concern.
(You can read the full research report on Walmart here >>>)
Shares of Exxon Mobil have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+5.3% vs. +3.7%). The company is a reliable player in the energy sector, it boasts a resilient capital structure and a track record of prudent capex management. Its strategic discoveries in the Stabroek Block and Permian Basin promise growth and lower greenhouse gas intensity.
With a robust balance sheet, Exxon Mobil prioritizes shareholder returns, evidenced by substantial buybacks and the strategic acquisition of Pioneer Natural Resources. The company aims to increase its annual share buybacks to $20 billion through 2025.
However, challenges loom, notably in the upstream operations, which are susceptible to volatile oil prices and regulatory hurdles. While committed to shareholders, Exxon Mobil faces scrutiny for lagging industry peers in terms of dividend yield. Reliance on finding economically recoverable reserves and exposure to OPEC production cuts add to uncertainties.
(You can read the full research report on Exxon Mobil here >>>)
Danaher shares have outperformed the Zacks Diversified Operations industry over the year-to-date period (+11.3% vs. -2.6%). The company's stable demand in the academic and applied markets is supporting its Life Sciences segment. The segment has been witnessing positive responses toward its new products.
Danaher's commitment to return value to shareholders is encouraging. Synergies from the Abcam acquisition bolster the company's growth. Through the company's DBS initiatives, it has been able to reduce the impact of supply-chain constraints and inflationary pressures.
However, Danaher is plagued by weakness in the Biotechnology unit due to decreased demand in the bioprocessing business. An increase in cost of sales may continue affecting the company's margin performance. High debt levels may raise its financial obligations and drain its profitability. Given the company's international exposure, forex woes are weighing on its top line.
(You can read the full research report on Danaher here >>>)
Shares of GSI Technology have underperformed the Zacks Computer- Storage Devices industry over the year-to-date period (+1.1% vs. +94.0%). This microcap company with market capitalization of $67.94 million saw significant losses and declining revenues, with potential liquidity issues highlighted by a drop in cash reserves to $14.4 million. Competitive pressures from major HPC players present significant risks.
Nevertheless, GSI Technology's strategic advancements with the Gemini-I and Gemini-II APUs mark significant progress in HPC and AI processing, offering substantial performance gains and catering to high-capacity, low-power applications.
The growing HPC market, driven by AI, IoT, and data-intensive applications, presents an opportunity for GSI to capture a significant share, especially in sectors like aerospace, defense, energy, and healthcare. The sale and leaseback of its headquarters add $11.9 million for R&D, while successful shipments of radiation-hardened products for the ESA mission open high-margin market opportunities.
(You can read the full research report on GSI Technology here >>>)
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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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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Danaher Corporation (DHR) : Free Stock Analysis Report
GSI Technology, Inc. (GSIT) : Free Stock Analysis Report
