Friday, July 14, 2023

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 (COP), Applied Materials, Inc. (AMAT) and Airbnb, Inc. (ABNB). 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 >>>

ConocoPhillips shares have outperformed the Zacks Oil and Gas - Integrated - United States industry over the past year (+40.1% vs. +28.4%). The company holds the bulk of acres in the unconventional plays of Eagle Ford shale, Permian Basin and Bakken shale. Significant opportunities are there for the company in the Bakken Shale, where it owns about 750 undrilled locations that could provide access to huge reserves.

ConocoPhillips projects its 2023 production at 1.78-1.8 MMBoe/d, suggesting an increase from 1.74 MMBoe/d last year. COP’s balance sheet is significantly less leveraged than the industry it belongs to. Additionally, the company announced its 2023 planned return of capital to shareholders of $11 billion.

However, ConocoPhillips is highly exposed to oil price fluctuations, which makes things challenging for the company. Also, the company been generating lower dividend yield than the industry for the past few years. As such, the stock warrants a cautious stance.


Shares of Applied Materials have outperformed the Zacks Semiconductor Equipment - Wafer Fabrication industry over the past six months (+30.3% vs. +22.2%). The company is benefiting from strong momentum across Semiconductor Systems and Applied Global Services. Further, solid demand for silicon in several applications across various markets remains a tailwind.

Increased customer spending in foundry and logic on the back of rising need for specialty nodes in automotive, power, 5G rollout, IoT, communications and image sensor markets, is a major positive. Strong momentum in conductor etches is benefiting the company’s position in DRAM and NAND.

However, sluggishness in its Display and Adjacent Market segment remains a concern. Softness in the segment is expected to continue in the days ahead. Further, mounting expenses and rising competition pose a risk to the company’s market position.

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

Airbnb shares have outperformed the Zacks Internet - Content industry over the past year (+48.3% vs. +34.1%) as well as the Zacks Hotels industry (+48.3% vs. +26.9%). The company is benefiting from a strong demand in the travel industry. Also, continued strength in Nights & Experiences Booked across all regions, especially in the Asia-pacific region remains a tailwind. Moreover, increasing gross nights booked in high-density urban areas is a major positive.

Further, strengthening guest demand for non-urban nights is driving active listings for non-urban destinations. Additionally, recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions is continuously propelling the top-line growth.

However, uncertainties related to the ongoing coronavirus pandemic remain overhangs. Further, macroeconomic headwinds and rising competition in the online travel booking market continue to remain concerns.

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

Other noteworthy reports we are featuring today include Micron Technology, Inc. (MU), Freeport-McMoRan Inc. (FCX) and Constellation Brands, Inc. (STZ).

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>>>