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The Zacks Analyst Blog Highlights: Chevron, Altria, Kraft-Heinz And Time Warner

Published 05/22/2017, 09:30 PM
Updated 07/09/2023, 06:31 AM

For Immediate Release

Chicago, IL – May 23, 2017 – 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 Chevron (NYSE: CVX Free Report ), Altria (NYSE: MO Free Report ), Kraft-Heinz (NASDAQ: KHC Free Report ) and Time Warner (NYSE: TWX Free Report ).

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Here are highlights from Monday’s Analyst Blog:

Top Research Reports for Today: Mo, CVX, KHC & TWX

The Zacks Research Daily presents the best research output of our analyst team. Today’s publication features new research reports on 16 major stocks, including Chevron (NYSE: CVX Free Report ), Altria (NYSE:MO Free Report ), Kraft-Heinz (NASDAQ: KHC Free Report ) and Time Warner (NYSE: TWX Free Report ). 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 >>>

Chevron started 2017 on a bullish note. It not only swung to a Q1 profit from a year-ago loss, but results handily beat estimates on the back of rebounding commodity prices, lower expenses and an improved U.S. refining environment. Following outperformance in 3 of the last 4 quarters, the stock has performed about in-line with the Zacks Integrated Oil Industry over the past year (up about +7%), but handily outperformed ExxonMobil (NYSE:XOM) which saw its stock go down -8.6% over the same time period. However, with oil testing the psychologically-critical $50 threshold again, the near-to-medium term revenue outlook for Chevron – one of the most oil-weighted majors – remains cloudy. Moreover, Chevron is still outspending its cash flow, making it dependent on asset sales. Hence, the Zacks analyst thinks investors should wait for a better entry point before buying shares in America's second largest oil company. (You can read the full research report on Chevron here >>> )

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Altria shares have lagged the Zacks Tobacco industry in the year-to-date period, with the stock up +6.5% vs. the peer group’s +15.8% gain. The company’s weaker than expected Q1 quarterly results have added to its under-performance. Altria, the U.S.-based entity whose international sibling is Phillips Morris International (PM), is operating in a mature and heavily regulated market that has been undergoing consistent volume declines over the last many years. But the strength of Marlboro brand and a solid portfolio or low-risk smokeless tobacco products positions it to profitably navigate this market. Further, the recent takeover of SABMiller (LON:SAB) by Anheuser-Busch InBev's helped Altria maximize the value of its SABMiller investment. An attractive dividend, currently yielding 3.4%, is a notable part of this story as well. (You can read the full research report on Altria here >>> )

Kraft Heinz shares remained relatively subdued this year, gaining only +3.4% year to date. Kraft Heinz's first-quarter earnings and revenues fell short of expectations. Notably, the company’s sales have now declined in four of the past five quarters. The Zacks analyst stresses that Kraft Heinz has been struggling due to the shift in consumer preference toward natural and organic ingredients over packaged and processed food. That said, strong brand portfolio, cost savings initiatives, innovation and marketing efforts raise growth prospects for the company. (You can read the full research report on Kraft Heinz here >>> )

Time Warner share have handily outperformed the broader market as well as the media space (the stock is up more than +35.4% over the last one year) on greater appreciation for the company's proactive strategic initiatives in response to the evolving media landscape. This trend is also borne out by its positive earnings surprise streak for more than 20 straight quarters. Investments in video content and technology continued to show results. Further, Time Warner’s significant international presence has helped broaden client base and product portfolio. Additionally, investments in programming, production and marketing, along with focus on operating and capital efficiencies augur well. However, decline in overall advertising spending and currency headwinds may adversely impact performance. On the other hand, AT&T (NYSE:T) has agreed to acquire Time Warner in an $85.4 billion deal, which is expected to be concluded by the end of the year. (You can read the full research report on Time Warner here >>> )

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If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.

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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 >>.

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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.



Chevron Corporation (NYSE:CVX

Altria Group (NYSE:MO

The Kraft Heinz Company (KHC): Free Stock Analysis Report

Time Warner Inc. (NYSE:TWX

Original post

Zacks Investment Research

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