Tuesday, August 29, 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 Exxon Mobil Corporation (XOM), The Home Depot, Inc. (HD) and Intel Corporation (INTC). 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 >>>

Exxon Mobil shares have lagged the market this year (-1.2% vs. +16.4% for the S&P 500 index), but have handily outperformed fellow super major Chevron (-1.2% vs. -11.1%) given Chevron's relatively greater commodity-price leverage. The company’s bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play.

In Stabroek Block, located off the coast of Guyana, ExxonMobil has made many major discoveries that significantly improve its production outlook. The advantaged growth projects of Guyana have lower greenhouse gas intensity than most of the oil and gas-producing resources across the globe. ExxonMobil also has a strong presence in the Permian Basin, the most prolific resource in the United States.

However, the firm’s dividend yield is lower than the composite stocks belonging to the industry. Moreover, weak industry margins and lower sales from the Chemical Products business especially in the United States, are hurting the energy firm’s operations.

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

Shares of Home Depot have modestly outperformed the Zacks Building Products - Retail industry over the past six months (+13.7% vs. +13.3%). The company has been witnessing significant benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.

The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. The company remains on track with its strategic investments to build a Pro ecosystem.

However, Home Depot top and bottom-lines declined year over year in second-quarter fiscal 2023. Results were impacted by a deflation in lumber prices and pressures in several big-ticket discretionary categories. HD retained its conservative view for fiscal 2023.

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

Intel shares have gained +35.2% over the past six months against the Zacks Semiconductor - General industry’s gain of +71.9%. The company is expanding its manufacturing capacity in Germany and Poland to accelerate its IDM 2.0 (Integrated Device Manufacturing) strategy and create an end-to-end leading-edge semiconductor manufacturing value chain in Europe.

It is gaining rapid strides in the data center business with integrated solutions that are highly competitive in prices. Solid traction of the Mobileye business related to autonomous car technology remains a tailwind. Strong focus on market diversification, innovation and a comprehensive product portfolio are tailwinds.

However, intense market volatility, depleting customer inventory levels and continued business uncertainties continue to impact revenues. High debt burden, forex woes and geopolitical volatility are other concerns. Stiff industry competition from established players in the market are depleting margins.

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

Other noteworthy reports we are featuring today include ConocoPhillips (COP), NextEra Energy, Inc. (NEE) and Vertex Pharmaceuticals Incorporated (VRTX).

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>>>