Top Analyst Reports for Exxon Mobil, AbbVie & Citigroup

Tuesday, May 11, 2021

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 Exxon Mobil Corp. (XOM), AbbVie Inc. (ABBV) and Citigroup Inc. (C). 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 Exxon Mobil have gained +51.8% over the year-to-date period against the Zacks Integrated Oil industry’s gain of +28.3%. The Zacks analyst believes that ExxonMobil's bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns, make it a relatively lower-risk energy sector play.

Notably, the firm estimates gross recoverable resource of nearly 9 billion oil-equivalent barrels from its offshore Guyana discoveries. As compared to 2019, this firm projects annual structural expense savings of $6 billion by 2023, aiding the bottom line. Also, ExxonMobil has significantly lower debt exposure as compared to other integrated majors. It reported strong first-quarter earnings thanks to improved realized commodity prices.

However, a lower fuel margin is keeping its downstream unit under pressure. Also, the pandemic affecting major economies around the world will likely keep energy demand low. This will, in turn, hurt the company's bottom line.

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

Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+8.5% vs +5.1%). The Zacks analyst believes that AbbVie’s key drug, Humira will continue to see strong demand trends in the United States.

AbbVie has been successful in expanding labels of its cancer drugs, Imbruvica and Venclexta. It has an impressive late-stage pipeline with several early/mid-stage candidates that have blockbuster potential. Its two new immunology drugs, Skyrizi and Rinvoq, are performing beyond expectations.

However, sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind. Also, the decline in HCV drug Mavyret’s sales is a concern.

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

Shares of Citigroup have outperformed the Zacks Banks - Major Regional industry over the last six-month period (+55.6% vs. +52.7%). The Zacks analyst believes that the company’s first-quarter 2021 results reflect strong capital markets performance and reserve releases.

Citigroup’s streamlining efforts, along with strategic investments in core business, bode well. Also, net interest revenues are likely to be supported by loan growth and mix, despite the low interest rate environment. Further, manageable debt level makes it less likely to default interest and debt repayment obligations in case of any economic downturn.

However, pending litigation issues might keep legal expenses elevated for the company. Additionally, a subdued consumer banking business might dent fee income base to some extent.

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

Other noteworthy reports we are featuring today include Alphabet Inc. (GOOGL), Altria Group, Inc. (MO) and Micron Technology, Inc. (MU).

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Mark Vickery
Senior Editor

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

ExxonMobil (XOM) to Gain Huge Cash Flows From Guyana Finds

AbbVie's (ABBV) Pipeline Solid; Skyrizi, Rinvoq Shine

Streamlining Efforts Aid Citi (C) Amid Falling Fee Income

Featured Reports

Copa Holdings (CPA) Benefits From Reduced Operating Costs

Per the Zacks analyst, significant reduction in operating expenses as a result of decline in passenger servicing and fuel costs is partly offsetting the coronavirus-led adversities.

Solid Pricing Aids Altria (MO) Amid Weak Cigarette Volumes

Per the Zacks analyst, Altria has been gaining on its solid pricing, which aided the company in first quarter. This also offers cushion amid weak cigarette volumes stemming from stern regulations.

Micron (MU) Benefits from Growing Memory-Chip Demand

Per the Zacks analyst, Micron is growing on solid memory-chip demand from PC manufacturers and data-center operators as the COVID-19 pandemic has boosted the work-and-learn-from-home trend.

Increasing Transaction Fees Aid Cboe Global Markets (CBOE)

Per the Zacks analyst, Cboe Global is poised to grow on rising transaction fees driven by trading volume growth as well as non-transactional revenues.

Omnicell's (OMCL) Elective Surgery Resumption Aids Growth

The Zacks Analyst is optimistic about Omnicell on gradual resumption of elective surgeries that has led to a record growth in the company's number of long-term sole-source contracts.

Jacobs (J) Backlog & Acquisitions Solid Amid High Labor Cost

Per the Zacks analyst, strong segmental performances, solid backlog and accretive acquisitions are likely to drive Jacobs' business.

Alphabet (GOOGL) Benefits From Cloud & Search Initiatives

Per the Zacks analyst, Alphabet's cloud arm is riding on expanding data centers and regions. Further, improving search results driven by major search updates and elimination of bad ads are positives.

New Upgrades

Exploration Progress, Debt Reduction to Aid Freeport (FCX)

According to the Zacks analyst, Freeport will benefit from its progress in exploration activities to expand production capacity and efforts to deleverage its balance sheet.

Favorable Demand, Acquisitions Aid International Paper (IP)

The Zacks analyst expects International Paper to gain from elevated packaging demand. Focus on strategic acquisitions in a bid to strengthen its packaging business will also aid growth.

Network Strength & Customer Growth Aid U.S. Cellular (USM)

Per the Zacks analyst, U.S. Cellular is poised to benefit from its network modernization program, adding capacity and speed while launching 5G services commercially, and VoLTE in the remaining markets

New Downgrades

Lilly's (LLY) COVID-19 Antibody Drug Sees Lower Demand

The Zacks analyst says that Lilly saw lower than expected revenues from its COVID-19 antibody drug, bamlanivimab due to lower demand which compelled the company to cut its 2021 sales/earnings outlook

Low Volumes, Regulations Ail Plains All American (PAA)

Per the Zacks analyst, Plains All American's (PAA) results are impacted by low tariff volumes in its pipelines and adherence of stringent regulations could increase cost and lower profitability.

High Costs, Rivalry Hurt Telephone and Data Systems (TDS)

Per the Zacks analyst, apart from intense competition, Telephone and Data Systems is challenged by increasing costs associated with network integration and wireless technology upgrades.

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
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
Altria Group, Inc. (MO): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Citigroup Inc. (C): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
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