Top Research Reports for

Wednesday, February 2, 2022

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 Chevron Corp. (CVX), HSBC Holdings plc (HSBC), and Anthem, Inc. (ANTM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

– Zacks

You can see all of today’s research reports here >>>

Shares of Chevron have underperformed the Zacks Integrated Oil industry over the past year (+59.5% vs. +69.6%), however, things seem to be improving. The Zacks analyst believes that Chevron’s acquisition of Noble Energy has expanded its presence in the DJ Basin as well as the Permian Basin, along with the addition of cash generating offshore assets in Israel.

Based on a slew of other tailwinds, CVX remains poised for capital appreciation in the quarters ahead. It boasts a project pipeline that is among the best in the industry, thanks to its premier position in the lucrative Permian. Chevron, however, can be exposed to volatility in commodity prices. It has also witnessed its debt-to-equity go up from 18.6% at the start of 2020 to 27.3% as of Sep 30.

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

HSBC shares have gained +34.1% over the past six months against the Zacks Foreign Banks industry’s rise of +8.9%. The Zacks analyst believes that HSBC’s robust capital position, brand value and a widespread network remain as the major tailwinds. Its restructuring initiatives are also impressive.

HSBC’s deal to buy AXA Singapore insurance assets and L&T Investment Management Limited will likely help expand business in Asia. Initiatives to improve market share in the U.K. and China will likely support its financials. These efforts, however, might lead to a rise in costs, thereby weighing on margins. Lower interest rates and weak loan demand are other major concerns for HSBC.

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

Shares of Anthem have gained +3.7% in the last three months against the Zacks HMO industry’s gain of +1.9%. The Zacks analyst believes that acquisitions and collaborations have helped Anthem boost its Medicare Advantage as well as strengthen its business portfolio.

Well-performing Medicare and Medicaid businesses coupled with several contract wins are expected to drive Anthem’s membership. Solid earnings guidance for 2022 is impressive. It witnessed a rise in usage of its virtual care services. Escalating costs and a weak balance sheet with a massive debt burden of $21.1B have been weighing on it margins, though.

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

Other noteworthy reports we are featuring today include CVS Health Corporation (CVS), Citigroup Inc. (C) and Target Corporation (TGT).

Mark Vickery
Senior Editor

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>>>

Today’s Must Read

Chevron (CVX) Boosts Permian Position with Noble Buy

Business Restructuring Aids HSBC (HSBC), Weak Revenues a Woe

Strategic Initiatives Aid Anthem (ANTM), Rising Costs Hurt

Featured Reports

CVS Health’s (CVS) Retail Segment Grows Amid Margin Woes
The Zacks analyst is optimistic about CVS Health’s continued revenue growth in the Retail Long Term Care business with a rebound in front store sales.

Citigroup (C) Progresses on Strategic Sales Amid Rising Costs
Per the Zacks analyst, Citigroup’s progress on the consumer banking business exit will help focus on core operations.

Target’s (TGT) Omnichannel Efforts, Digitization to Aid Sales
Per the Zacks analyst, Target’s focus on enhancing omnichannel capacities, coming up with new brands, remodeling stores, and expanding same-day delivery options have been fueling sales.

Solid Adoption of ESG Solution Aids MSCI’s (MSCI) Progress
Per the Zacks analyst, MSCI is benefiting from strong demand for custom and factor index modules and the increasing adoption of the ESG solution into the investment process.

Industrial and Laboratory Segments Aid Mettler-Toledo (MTD)
Per the Zacks analyst, Mettler-Toledo is riding on robust industrial and laboratory segments driven by strong core industrial business and solid demand across pharmaceutical and life science markets.

MGM Resorts (MGM) Banks on Sport Betting, Traffic Woes Stay
Per the Zacks analyst, MGM Resorts is benefiting from pent-up consumer demand, high domestic casino spending, and robust demand for sports betting.

Expeditors (EXPD) Banks on Uptick in Airfreight Revenues
The Zacks analyst is positive about higher airfreight revenues, driven by an uptick in travel demand. Expeditors’ efforts to reward shareholders through dividend payments and buybacks are impressive.

New Upgrades

Nutrien (NTR) Gains on Strong Demand and Higher Prices
Per the Zacks analyst, the company will gain from solid demand for fertilizers driven by the strength in global agriculture markets. Higher prices for crop nutrients will also support its margins.

Phillips 66 (PSX) to Gain From Higher Distillate Fuel Demand
Per the Zacks analyst, Phillips 66 is positioned well to benefit from higher distillate fuel demand amid changes in the marine fuel sulfur limits.

Strong E-Commerce Demand Aids Packaging Corporation (PKG)
Per the Zacks analyst, Packaging Corporation will gain on robust packaging demand fueled by e-commerce activities and rising requirement for packaging of food, beverages, and medicines.

New Downgrades

Elevated Expenses Likely to Mar Atlassian’s (TEAM) Margins
Per the Zacks analyst, increased investment toward enhancing sales & marketing capabilities and higher spending on research & development are likely to dampen Atlassian’s margins in the near term.

Escalating Cost, Stiff Rivalry Irks Exact Sciences (EXAS)
The Zacks analyst is concerned about Exact Sciences’ increasing expenses putting pressure on the bottom line. Also, the highly competitive colorectal cancer screening market is a concern.

Cambium (CMBM) Plagued by Supply Chain Woes, Shipment Delays
Per the Zacks analyst, supply chain disruptions and delayed shipments have forced Cambium to seek alternate sources of raw material supply, further escalating costs and affecting its future cash flow.

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Citigroup Inc. (C): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
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CVS Health Corporation (CVS): Free Stock Analysis Report
HSBC Holdings plc (HSBC): Free Stock Analysis Report
Anthem, Inc. (ANTM): Free Stock Analysis Report
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Zacks Investment Research


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