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The Zacks Analyst Blog Exxon Mobil, Salesforce, BHP and Oil-Dri
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For Immediate Releases
Chicago, IL – September 20 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: Exxon Mobil Corp. (XOM - Free Report) , Salesforce, Inc. (CRM - Free Report) and BHP Group Ltd. (BHP - Free Report) and Oil-Dri Corp. of America (ODC - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Top Analyst Reports for ExxonMobil, Salesforce and BHP
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 Corp., Salesforce, Inc. and BHP Group Ltd. , as well as a micro-cap stock Oil-Dri Corp. of America . 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.
Exxon Mobil shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+2.2% vs. -1.4%). The company being a reliable player in the energy sector, boasts a resilient capital structure, a robust balance sheet and track record of prudent capex management.
Its strategic discoveries in the Stabroek Block and Permian Basin promise growth and lower greenhouse gas intensity. ExxonMobil prioritizes shareholder returns, evidenced by substantial share buybacks. ExxonMobil’s entry into the lithium market positions it for long-term gains as the demand for lithium is poised to increase with the growing adoption of electric vehicles.
However, challenges loom, notably in the upstream operations, which are susceptible to volatile oil prices and regulatory hurdles. Increasing societal focus on environmental risks and climate change pose a threat to its traditional oil & gas business. Further, exposure to OPEC production cuts adds to uncertainties.
Shares of Salesforce have gained +17.7% over the past year against the Zacks Computer - Software industry’s gain of +30.2%. The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line. Continued deal wins in the international market are another growth driver.
The buyout of Slack has positioned it as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuous expansion of generative AI offerings will help it tap the growing opportunities in the space.
According to the Zacks analyst estimates Salesforce revenues are expected to witness a CAGR of 8.6% through fiscal 2025-2027. However, stiff competition and unfavorable currency fluctuations are concerns. Softening IT spending amid ongoing macroeconomic uncertainties might hurt its growth prospects.
BHP’s shares have declined -3.5% over the past year against the Zacks Mining - Miscellaneous industry’s decline of -5.0%. The company expects iron ore production for fiscal 2025 at 255-265.5 Mt. The midpoint of the range indicates in-line results with fiscal 2024. Its copper guidance of 1,845-2,045 kt indicates 4% growth at the midpoint. Iron ore prices have declined 33% year to date due to weak demand in China.
Copper prices will also likely be impacted by contraction in the manufacturing sector. While the increase in production might boost BHP’s results, it will be offset by lower prices and higher costs. The Zacks analyst expects a recovery in iron ore prices aided by infrastructure demand in the United States.
The long-term outlook for copper prices remains positive, supported by demand for electric vehicles. BHP’s investment in projects focused on future-facing commodities and its efforts to improve operational efficiency through technology will also drive growth.
Shares of Oil-Dri have outperformed the Zacks Chemical - Diversified industry over the past year (+6.9% vs. -0.5%). This microcap company with market capitalization of $494.38 million has acquired Ultra Pet Company, which strengthens its position in the high-growth crystal cat litter segment and is expected to boost earnings. ODC’s third-quarter fiscal 2024 sales reached $106.8 million, marking 12 consecutive quarters of year-over-year growth.
The company increased its dividend 7% for the 21st consecutive year. Product launches like Cat’s Pride Antibacterial Clumping Litter enhance its competitive edge. Yet, SG&A expenses grew 51% year over year in third-quarter fiscal 2024, reducing operating income 28%.
Agricultural and animal health product sales fell 24% and 17% year over year, respectively. ODC's heavy reliance on Walmart for a significant portion of its sales makes its revenues vulnerable to volatility. High advertising costs impacted the company's profitability.
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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The Zacks Analyst Blog Exxon Mobil, Salesforce, BHP and Oil-Dri
For Immediate Releases
Chicago, IL – September 20 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: Exxon Mobil Corp. (XOM - Free Report) , Salesforce, Inc. (CRM - Free Report) and BHP Group Ltd. (BHP - Free Report) and Oil-Dri Corp. of America (ODC - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Top Analyst Reports for ExxonMobil, Salesforce and BHP
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 Corp., Salesforce, Inc. and BHP Group Ltd. , as well as a micro-cap stock Oil-Dri Corp. of America . 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 >>>
Exxon Mobil shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+2.2% vs. -1.4%). The company being a reliable player in the energy sector, boasts a resilient capital structure, a robust balance sheet and track record of prudent capex management.
Its strategic discoveries in the Stabroek Block and Permian Basin promise growth and lower greenhouse gas intensity. ExxonMobil prioritizes shareholder returns, evidenced by substantial share buybacks. ExxonMobil’s entry into the lithium market positions it for long-term gains as the demand for lithium is poised to increase with the growing adoption of electric vehicles.
However, challenges loom, notably in the upstream operations, which are susceptible to volatile oil prices and regulatory hurdles. Increasing societal focus on environmental risks and climate change pose a threat to its traditional oil & gas business. Further, exposure to OPEC production cuts adds to uncertainties.
(You can read the full research report on Exxon Mobil here >>>)
Shares of Salesforce have gained +17.7% over the past year against the Zacks Computer - Software industry’s gain of +30.2%. The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line. Continued deal wins in the international market are another growth driver.
The buyout of Slack has positioned it as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuous expansion of generative AI offerings will help it tap the growing opportunities in the space.
According to the Zacks analyst estimates Salesforce revenues are expected to witness a CAGR of 8.6% through fiscal 2025-2027. However, stiff competition and unfavorable currency fluctuations are concerns. Softening IT spending amid ongoing macroeconomic uncertainties might hurt its growth prospects.
(You can read the full research report on Salesforce here >>>)
BHP’s shares have declined -3.5% over the past year against the Zacks Mining - Miscellaneous industry’s decline of -5.0%. The company expects iron ore production for fiscal 2025 at 255-265.5 Mt. The midpoint of the range indicates in-line results with fiscal 2024. Its copper guidance of 1,845-2,045 kt indicates 4% growth at the midpoint. Iron ore prices have declined 33% year to date due to weak demand in China.
Copper prices will also likely be impacted by contraction in the manufacturing sector. While the increase in production might boost BHP’s results, it will be offset by lower prices and higher costs. The Zacks analyst expects a recovery in iron ore prices aided by infrastructure demand in the United States.
The long-term outlook for copper prices remains positive, supported by demand for electric vehicles. BHP’s investment in projects focused on future-facing commodities and its efforts to improve operational efficiency through technology will also drive growth.
(You can read the full research report on BHP here >>>)
Shares of Oil-Dri have outperformed the Zacks Chemical - Diversified industry over the past year (+6.9% vs. -0.5%). This microcap company with market capitalization of $494.38 million has acquired Ultra Pet Company, which strengthens its position in the high-growth crystal cat litter segment and is expected to boost earnings. ODC’s third-quarter fiscal 2024 sales reached $106.8 million, marking 12 consecutive quarters of year-over-year growth.
The company increased its dividend 7% for the 21st consecutive year. Product launches like Cat’s Pride Antibacterial Clumping Litter enhance its competitive edge. Yet, SG&A expenses grew 51% year over year in third-quarter fiscal 2024, reducing operating income 28%.
Agricultural and animal health product sales fell 24% and 17% year over year, respectively. ODC's heavy reliance on Walmart for a significant portion of its sales makes its revenues vulnerable to volatility. High advertising costs impacted the company's profitability.
(You can read the full research report on Oil-Dri 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.