Wednesday, August 7, 2024

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 AstraZeneca PLC (AZN), TotalEnergies SE (TTE) and ConocoPhillips (COP). 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 >>>

AstraZeneca shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+17.7% vs. +16.8%). The company beat Q2 estimates for earnings and sales. It has a diverse product portfolio and a global footprint. Its key drugs like Lynparza, Tagrisso, Imfinzi, Fasenra, Ultomiris and Farxiga should keep driving revenues. 

AstraZeneca’s pipeline is strong, with important late as well as mid-stage pipeline data readouts lined up. It has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. 

Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit.

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

Shares of TotalEnergies have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past six months (+3.1% vs. -1.4%). The company continues to benefit from startups, acquisitions, well-spread LNG assets and contributions from upstream assets located in the new hydrocarbon-producing regions. 

Multi-energy assets of the company, spread across the globe, support its performance and allow to increase the value of shareholders. The company is investing in clean power generation and aims to achieve net-zero emissions by 2050. 

Yet, the company’s production might be impacted by security reasons in some regions and it remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. A natural decline in production and its withdrawal from Russia might affect profitability.

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

ConocoPhillips shares have declined -6.6% over the past year against the Zacks Oil and Gas - Integrated - United States industry’s decline of -9.0%. The company’s significant reliance on crude exposes it to oil price fluctuations. The company reported lower-than-expected Q2 earnings due to increased costs, as inflation led to higher production and operating expenses in 2024, thereby squeezing margins.

Nevertheless, ConocoPhillips is set to benefit from its extensive untapped drilling locations in cost-effective and diverse upstream assets like Eagle Ford shale, Permian Basin and Bakken shale. The impending acquisition of Marathon Oil Corporation should boost ConocoPhillips' production capabilities and expand its regional footprint in these key regions. 

It is strategically increasing its presence in the liquefied natural gas market to meet the growing energy transition demand toward a low-carbon future. ConocoPhillips’ minimal debt exposure provides resilience during periods of low commodity prices.

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

Other noteworthy reports we are featuring today include Canadian Natural Resources Limited (CNQ), Newmont Corporation (NEM) and L3Harris Technologies, Inc. (LHX).

Director of Research

Sheraz Mian

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>>>