For Immediate Release
Chicago, IL – Feb 26, 2018 – 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 Walmart Inc. (NYSE:WMT) , Chevron Corporation (NYSE:CVX) , ExxonMobil Corporation (NYSE:XOM) , The Travelers Companies, Inc. (NYSE:TRV) and Merck & Co., Inc. (NYSE:MRK) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday’s Analyst Blog:
Dow 30 Stock Roundup: WMT, MRK, TRV and More
The Dow experienced a volatile holiday shortened week, suffering losses during two trading sessions. Investors continued to remain concerned about rising inflation and surging bond yields. Disappointing results from a key component also weighed on the index. At the same time, encouraging jobs data helped the index notch up gains.
Last Week’s Performance
Markets remained closed on Monday due to the observance of President's Day. The index decreased 1% on Tuesday following a decline in the shares of Walmart Inc. Shares of Walmart declined 10.2% after posting fourth-quarter results.
Walmart snapped its nine-quarter long trend of posting positive earnings surprises. Also, rate of e-commerce sales growth declined sequentially in the quarter. This was Walmart’s biggest percentage decline in a single day since January 1988.
After hitting its highest levels since 2014 last week, the yield on benchmark 10-year U.S. Treasury note surged to 2.9% on Monday. Further, the short-term two-year yield lingered around a nine-year high. Such a spike in interest rates also weighed on equities and led to broad based losses for markets.
The index lost 0.7% or 167 points to finish in the red on Wednesday following the release of minutes from Fed’s latest policy meeting. Bond rates surged to a 4-year high following the release of the minutes and weighed heavily on equities. Earlier in the session, major benchmarks had rallied after the minutes expressed concerns about the lack of broad-based wage gains.
At the end of the Federal Open Market Committee (FOMC) meeting, Fed officials stated that most members had revised their economic growth projections upward from the last meeting in December. Moreover, the minutes also stated that gradually increasing the interest rates would help in sustaining economic growth.
The index gained 0.7% on Thursday following encouraging jobs data which helped to detract attention from ongoing concerns surrounding rising inflation and the spike in bond yields. Initial claims for the week ended Feb 17 declined by 7,000 to 222,000, the second lowest level recorded since the end of the Great Recession.
The metric also came in well below the estimated level of 230,000. Ultimately, however, stocks slipped from their session highs after healthcare and financials entered the negative zone during the afternoon session.
Components Moving the Index
Walmart’s fourth-quarter fiscal 2018 adjusted earnings of $1.33 per share missed the Zacks Consensus Estimate of $1.36. Nonetheless, adjusted earnings grew 2.3% from $1.30 reported in the year-ago period. Total revenues advanced 4.1% to $136.3 billion and also surpassed the Zacks Consensus Estimate of nearly $135 billion.
The segment recorded net sales growth of 3.4% to $86.6 billion in the quarter. U.S. comparable-store sales (comps), excluding fuel, jumped 2.6%, compared with 1.8% growth in the prior-year quarter.
Zacks Rank #2 (Buy) Walmart’s earnings for fiscal 2018 came in at $4.42 per share, up 2.3% year over year. However, this came below the consensus mark of $4.44. Net revenues for fiscal 2018 advanced 3% to $500.3 billion, cruising ahead of the consensus estimate of $498.1 billion.
Notably, U.S. comps for fiscal 2018 climbed 2.1%, whereas Walmart U.S. e-commerce sales soared 44%. For fiscal 2019, the company expects consolidated net sales (on a constant-currency basis) to increase in a range of 1.5- 2%. Walmart U.S. e-commerce sales is projected to jump nearly 40%. (Read: Walmart's Q4 Earnings Miss Hurts Stock, Comps Up Again)
Chevron Corporation has recently recommenced operations in the politically disturbed Kurdistan region of Iraq, per Reuters. The company restarted operations at the Sarta 3 block in Kurdistan. Chevron has a Zacks Rank #3 (Hold).
The company had to call off operations in the region in October 2017 due to increasing dispute. In January 2018, the company revealed its plan to restart operations in the field and took necessary steps to remobilize staff and equipment in the region to recommence operations, with the dispute abating of late.
The $213 billion market cap company started its operations in the Kurdistan region in 2012. However, it was blacklisted by the Iraqi government in July 2012 after the company signed contracts with the Kurdistan Regional Government to acquire two exploration blocks in the region. (Read: Chevron's Kurdistan Operations in Iraq Back Online)
ExxonMobil Corporation and Total SA (PA:TOTF) have proposed major expansion plans in the Papua New Guinea (PNG) liquefied natural gas (LNG) plant, per their partner Oil Search Ltd. ExxonMobil has a Zacks Rank #3.
Per the analysts, the expansion plan is aimed to increase gas exports from the PNG LNG plant by two fold to about 16 million tons at a cost of about $13 billion.
The plan will include the addition of three LNG units, or trains. Of this, two are backed by gas from the Elk-Antelope fields, managed by Total. One unit will be supported by existing fields and the new P'nyang field, managed by ExxonMobil.
Subject to approval by the PNG government, the partners intend to commence engineering and design work in the second half of this year.
The preliminary cost of building the PNG LNG plant was pegged at $19.5 billion, while the expansion cost is projected in the range of $12-$14 billion for the additional capacity of 8 million tons per annum (mtpa), or $1,600 per ton. (Read: ExxonMobil, Total to Expand Capacity at PNG LNG Plant)
The Travelers Companies, Inc. recently unveiled Quantum Home 2.0, which will help the company offer its clients a much more efficient and simplified way of communication. The product introduced of late will enable the property and casualty (P&C) insurer to improve services and also bring in new business.
The new offering is basically an improved homeowners insurance product with customized pricing and more flexible coverage options. Interestingly, the product provides the aforementioned services through simpler policy documents that will allow the company’s clients in better understanding of their insurance.
Additionally, the P&C insurer’s new product will help agents seamlessly quote and bind coverage. The product will boast improved features like new discounts for clients, decreasing deductible and loss forgiveness options, acknowledging customers’ loyalty. The stock has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Merck & Co., Inc. has proposed to buy Viralytics Limited, an Australian pharmaceutical company that develops oncolytic immunotherapies for a range of cancers, for $394 million (502 million Australian dollars).
The deal makes strategic sense and strengthens Zacks Rank #3 Merck’s presence in the fast growing immuno-oncology market. With the deal, Merck will gain Viralytics’s lead pipeline candidate Cavatak, an oncolytic virus, which engages the innate immune system to attack and kill cancer cells.
Cavatak is being evaluated in several phase I/II cancer studies including a combination study with Merck’s PD-1 inhibitor, Keytruda. The Cavatak/Keytruda combination is being studied in melanoma, prostate, lung and bladder cancers, per a deal signed by the companies in November 2015. (Read: Merck to Buy Australian Firm to Boost Immunotherapy Pipeline)
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook (NASDAQ:FB): https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
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.
Merck & Company, Inc. (MRK): Free Stock Analysis Report
The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report
Original post