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Top Analyst Reports for Oracle, Abbott & Chevron

Sheraz Mian
·7-min read

Friday, July 10, 2020

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 Oracle (ORCL), Abbott Laboratories (ABT) and Chevron (CVX). 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 >>>

Oracle shares have underperformed the Zacks Computer Software industry over the past year (-4.1% vs. +36.1%), but the Zacks analyst sees a better long-term trajectory for the company given rapid adoption of data cloud solutions and Autonomous Database.

Strong uptake of cloud-based solutions, comprising NetSuite ERP, Fusion ERP and Fusion HCM, remains notable. Moreover, companies like 8x8 and Zoom Video Communications have selected Oracle Cloud Infrastructure services to address business needs, which is a testament to the strength of its cloud offerings. Solid demand for the Oracle Dedicated Region Cloud@Customer supported by ML is anticipated to drive the top line.

Although the company’s shares have underperformed in the past year, these factors are expected to help it grow in the rest of 2020. However, coronavirus crisis led business impacts remain an overhang on renewals and payments. Rise in spending on product enhancements amid stiff competition in the cloud market is anticipated to weigh on margins. 

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

Shares of Abbott have gained +10.1% over the past six months against the Zacks Medical Products industry’s fall of -9.5%. The Zacks analyst believes that the branded generics and international diabetes businesses should drive growth in the coming quarters. New product launches and acquisitions should boost sales further.

Abbott registered strong and consistent performance within EPD and Medical Devices segments in the first quarter of 2020. It has been in news within Diabetic Care on growth with FreeStyle Libre. With the healthcare industry shifting its focus to control the coronavirus-led damage, Abbott has witnessed its molecular diagnostics and nutrition businesses putting up impressive performance during this period.

The company launched three back-to-back diagnostic tests for covid-19. Abbott put up a robust performance in the first quarter with better-than-expected earnings and revenue numbers. However, Abbott’s Core Laboratory Diagnostics, cardiovascular and neuromodulation sales were significantly down in the reported quarter affected by lower demand in the past few months.

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

Chevron shares have lost -2.5% over the past three months against the Zacks Integrated Oil industry’s fall of -7.1%. The Zacks analyst believes that the supermajor’s reserve replacement ratio of 44% is indicative of its inability to add proved reserves to its reserve base to the amount of oil and gas produced.

The company's worldwide production averaged a record 3,058 MBOE/d in 2019, reflecting an increase of 4.4% thanks to expansion in the lucrative Permian Basin. Chevron’s well economics in the play also continues to improve as the company has been able to achieve a 40% reduction in its development and production costs since 2015.

However, Chevron is not immune to this historic oil price crash, forcing it to cut capex and suspend buybacks. The company’s high oil price sensitivity is a concern too.

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

Other noteworthy reports we are featuring today include Sanofi (SNY), Royal Dutch Shell (RDS.A) and Boeing (BA).

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Sheraz Mian

Director of Research

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

Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships

Abbott (ABT) Thrives on New Tests launch Amid Covid-19 Mayhem

Chevron (CVX) Buoyed by Improving Permian Well Economics

Featured Reports

Sanofi (SNY) Specialty Care & Vaccines Unit Support Sales

The Zacks analyst says that Sanofi's Specialty Care unit is on a strong footing with regular label expansion of Dupixent.

Royal Dutch Shell (RDS.A) to Gain from Growing LNG Demand

The Zacks analyst believes that Shell's position as a major supplier of liquefied natural gas should help it benefit its long-term cash flow growth on the back of attractive growth opportunities.

Defense Budget Aids Boeing (BA), Poor 737 Deliveries Hurt

Per the Zacks analyst, expansionary defense budget adopted by current U.S. government boosts Boeing. However, poor deliveries of its 737 jets have been significantly hurting its commercial business.

LNG Focus, Strong Production Portfolio Aid TOTAL (TOT)

Per the Zacks analyst TOTAL's focus to develop LNG assets globally and its strong production growth through new startup are going to boost its performance.

Robust Demand Aids Lockheed (LMT), F-35 program's Cost Hurts

Per the Zacks Analyst, Lockheed Martin witnesses strong demand for its aircraft programs and missile defense systems.

CVS Health (CVS) Tackles Pandemic Crisis with Digital Strategy

The Zacks analyst is upbeat about CVS Health's consumer centric digital strategy, which has become relevant in the pandemic-led stay-at-home orders.

Clorox's (CLX) IGNITE Strategy Likely to Boost EBIT Margin

Per the Zacks analyst, Clorox has been benefiting from its cost-saving efforts, especially the IGNITE strategy. On the back of IGNITE, Clorox envisions EBIT margin expansion of 175 bps annually.

New Upgrades

Revlimid, Eliquis Boost Bristol-Myers (BMY), Opdivo Weakens

Per the Zacks analyst, Eliquis and Revlimid propel Bristol-Myers' top-line. The label expansion of blockbuster drug Opdivo is positive as well but the drug sales have soften due to competition.

Philips (PHG) Benefits from Solid Portable Ventilator Demand

Per the Zacks analyst, Philips is benefiting from strong demand for portable ventilators amid the coronavirus pandemic. This is expected to drive Connected Care top-line growth in the near term.

Cost Control, Commercialization strategy to Aid Cosan (CZZ)

Per the Zacks analyst, Cosan will gain from its focus on supply and commercialization strategy to support customer relationships as well as its cost control actions.

New Downgrades

DXC's Growth Prospects to be Hurt by Lower IT Spending

Per the Zacks Analyst, DXC's growth prospects might be hurt by soft IT spending as organizations are pushing back their investments in big and expensive tech products amid the coronavirus crisis.

Weak Locum Tenens Solutions Unit Hurt AMN Healthcare (AMN)

Per the Zacks analyst, weak performance at Locum Tenens Solutions business due to the disruption created by the coronavirus pandemic have weighed on AMN Healthcare's overall results.

CommScope (COMM) Hit by Supply Chain Disruption & Expenses

Per the Zacks analyst, CommScope is bearing the brunt of supply chain disruptions stemming from the COVID-19 pandemic. Rising operating expenses are likely to put pressure on the bottom line.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sanofi (SNY) : Free Stock Analysis Report
Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
The Boeing Company (BA) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
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