Top Stock Reports for Costco Wholesale, Intuit & Schlumberger
Friday, January 27, 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 Costco Wholesale Corp. (COST), Intuit Inc. (INTU) and Schlumberger Ltd. (SLB). 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 >>>
Shares of Costco Wholesale have gained +1.2% over the past year against the Zacks Retail - Discount Stores industry’s gain of +3.1%. The company, being a consumer defensive stock, has been surviving market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth.
These factors have been helping it register impressive sales and earnings numbers. The Zacks analyst expects the company to register a 3.8% adjusted earnings per share improvement in fiscal 2023 on 6.6% revenue growth.
This outlook accounts for the businesses’ ability to navigate the ongoing inflationary environment and supply chain bottlenecks on several fronts. A favorable product mix, steady store traffic, pricing power and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.
(You can read the full research report on Costco Wholesale here >>>)
Intuit's shares have underperformed the Zacks Computer - Software industry over the past year (-22.8% vs. -17.4%). The company is witnessing macroeconomic and geopolitical headwinds might significantly hurt small businesses operations, thereby posing risks for Intuit’s top-line growth. Additionally, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting bottom-line results in the near term.
Nevertheless, Intuit is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues. The TurboTax Live offering is also driving growth in the Consumer tax business. Solid momentum in the company’s lending product, QuickBooks Capital, remains a positive.
Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run. The Zacks analyst expects Intuit’s revenues to grow at a CAGR of 11.9% through fiscal 2023-2025.
(You can read the full research report on Intuit here >>>)
Schlumberger’s shares have outperformed the Zacks Oil and Gas - Field Services industry over the past year (+44.9% vs. +36.4%). The company is the largest oilfield services player, with a presence in every energy market across the globe. Being the leading provider of technology for complex oilfields, the firm is well-poised to take up new offshore projects in international markets.
Higher oil prices is aiding its overall business. SLB reported strong fourth-quarter results driven by strong activities in land and offshore resources in North America and Latin America. It made significant progress in its sustainability initiatives in 2022. SLB expects its Transition Technologies portfolio to cross the $1 billion revenue mark in 2023.
However, the company’s balance sheet has massive debt exposure compared with the composite stocks in the industry. Also, the aggressive capital budget remains a headwind for the company. As such, the stock warrants a cautious stance.
(You can read the full research report on Schlumberger here >>>)
Other noteworthy reports we are featuring today include Aflac Inc. (AFL), Alcon Inc. (ALC) and W.W. Grainger, Inc. (GWW).
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
Decent Comparable Sales Run to Fuel Costco's (COST) Top Line
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Schlumberger (SLB) to Gain on Rising Oilfield Service Demand
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
Per the Zacks analyst, NextEra's planned capital investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.
Aflac (AFL) Banks on Growing U.S. Operations & Product Suite
The Zacks analyst believes that Aflac's huge U.S. market share will drive sales growth, aided by a solid product suite. However, constraints in the Japan business are a concern.
Surgical Sales Rebound Aids Alcon (ALC), Margin Issues Stay
The Zacks analyst is relieved by the international market recovery and continued demand for Vivity and Hydrus within Alcon's Surgical business. Yet, mounting expenses are putting pressure on margins.
Onpattro, Givlaari Boost Alnylam (ALNY), Setbacks A Conern
Per the Zacks analyst, the strong uptake of Onpattro and Givlaari has fueled growth for Alnylam. Approval of new drugs should boost growth further but pipeline setbacks are a concern.
United Airlines (UAL) Rides on Air Travel Demand, Costs Ail
The Zacks Analyst is impressed with the fact that increased air-travel demand is aiding United Airlines' top-line performance. However, rising fuel costs continues to weigh on the bottom line.
Aspen (AZPN) To Benefit From Diversified Product Portfolio
Per the Zacks analyst, Aspen will benefit from increased demand across all business segment and frequent product launches. However, stiff competition is a headwind.
Strong Backlog Aids AECOM (ACM), Economic Slowdown Hurts
As per Zacks analyst, AECOM has been gaining from organic growth opportunities, digital capabilities and a solid design backlog. Yet, cyclicality and political and economic uncertainties ail.
Strong Demand, Growth in E-Commerce Sales Aid Grainger (GWW)
Per the Zacks analyst, Grainger is poised well to gain on strong demand in its end markets and efforts to strengthen customer relationships and investment in e-commerce and digital capabilities.
Reinsurance Group (RGA) Gains on Solid U.S. & Latin American Market
Per the Zacks analyst, solid performance at the U.S. and Latin American traditional market backed by organic growth and new sales have been driving premium growth at the company.
ProPetro (PUMP) to Benefit from Debt-Free Balance Sheet
The Zacks analyst likes ProPetro's strong balance sheet, which has got zero debt to go with $43.2 million in cash and $155 million available under the revolving credit facility.
Rising Lease Operating Expenses Hurt Southwestern (SWN)
The Zacks analyst is concerned about Southwestern since increasing lease operating expenses are hurting the upstream energy player's bottom line.
Weakness Across End Markets & Forex Woes Weigh on 3M (MMM)
Weakening demand across industrial end markets, foreign exchange headwinds and persistent decline in disposable respirator demand have made the Zacks analyst turn bearish on the stock.
G-III Apparel (GIII) Witnesses Increased SG&A Expenses Now
Per the Zacks analyst, G-III Apparel has been witnessing higher SG&A expenses for a while now. In the third quarter of fiscal 2023, SG&A expenses grew 31.5% year over year. Margins are also weak.
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Schlumberger Limited (SLB) : Free Stock Analysis Report
Aflac Incorporated (AFL) : Free Stock Analysis Report
Alcon (ALC) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
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