The Zacks Analyst Blog Highlights: Chevron, Wells Fargo, Eli Lilly, FedEx and Valero

An image of a person going over a financial report Credit: Shutterstock photo

For Immediate Release

Chicago, IL - May 31, 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 ChevronCVX , Wells FargoWFC , Eli LillyLLY , FedExFDX and Valero EnergyVLO .

Here are highlights from Wednesday's Analyst Blog:

Top Analyst Reports for Chevron, Wells Fargo and Eli Lilly

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, Wells Fargo and Eli Lilly. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

Chevron 's shares have risen +17.3% in the past year, outperforming the Zacks Integrated Oil industry's +14.8% increase, while larger rival Exxon Mobil has seen its scrip go up a meagre 1.3% over the same time period.

The supermajor has been a beneficiary of the recovery in commodity prices, which helped its upstream unit profits to double from a year ago. Further, Chevron's high-quality Permian acreage continues to drive production. Importantly, cash flow from operations, at $5 billion, were more than $1 billion higher than a year ago.

However, the Zacks analyst remains worried over a drop in Chevron's downstream segment earnings on weaker margins, while exposure to production in the vulnerable and violence-prone regions in Nigeria poses additional risk. Hence, investors are advised to wait for a better entry point before buying shares in Chevron.

Wells Fargo 's shares have underperformed the Zacks Major Banks industry over the last six months (-5.7% vs. -2.3%). The company possesses a decent earnings surprise history, having beaten the Zacks Consensus Estimate in two of the trailing four quarters.

Recently, the bank entered into a consent order with OCC and CFPB for paying $1 billion as civil penalty related to auto-loan issues. Also, Wells Fargo was slapped with new sanctions, including a cap on the assets position by the Federal Reserve. Though continued growth in loans and deposits, lower tax rate and expansions will likely support the bank's growth profile, the crisis related to the revelation of illegally opening millions of illegal accounts in 2016 will take some time to alleviate.

Shares of Buy-rated Eli Lilly have outperformed the Zacks Large-Cap Pharmaceuticals industry in the last year (+3.6% vs. -0.8%). The Zacks analyst thinks Lilly's presence across a wide range of therapeutic areas provides support in the face of generic competition. Lilly's new products like Trulicity, Taltz, Basaglar, Cyramza, Jardiance and Lartruvo have been driving revenues and the trend is expected to continue in 2018.

Lilly expects to launch 20 new products between 2014 and 2023, including at least two new indications/line extensions on an average every year. Also, competitive pressure on Lilly's drugs is expected to rise this year.

Meanwhile, challenges remain for the company in the form of loss of patent exclusivity for products like Cialis and the impact of generic competition for Strattera, Effient and Axiron. U.S. pricing access pressure will also remain a headwind in 2018.

Other noteworthy reports we are featuring today include FedEx and Valero Energy.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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

Wells Fargo & Company (WFC): Free Stock Analysis Report

Eli Lilly and Company (LLY): Free Stock Analysis Report

Valero Energy Corporation (VLO): Free Stock Analysis Report

Chevron Corporation (CVX): Free Stock Analysis Report

FedEx Corporation (FDX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.