CHICAGO, Oct. 25, 2013 /PRNewswire/ -- 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 the Chevron Corporation (NYSE:CVX-Free Report), Stone Energy Corp. (NYSE:SGY-Free Report),Seadrill Partners LLC (NYSE:SDLP-Free Report), Linn Energy, LLC (Nasdaq:LINE-Free Report) and Wal-Mart Stores, Inc. (NYSE:WMT-Free Report).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Chevron Buys Prospect Off Australia Coast
Chevron Asia Pacific Exploration and Production Company, an Australian subsidiary of the U.S. energy behemoth, Chevron Corporation (NYSE:CVX-Free Report), has acquired full operating interest in two blocks located in the deepwater Bight Basin, 275 miles west of Port Lincoln, off the coast of South Australia.
The offshore blocks S12-2 and S12-3 are spread over 8 million acres. The acquisition is expected to add value to the company's portfolio, with more exploration opportunities in Australia. The move is in line with the integrated supermajor's plans of expanding its asset base.
San Ramon, CA-based Chevron is one of the largest publicly traded oil and gas companies in the world. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals and other energy-related businesses.
However, Chevron's earnings do not look pretty. Last quarter, the company failed to beat the Zacks Consensus Estimate. We expect this negative trend to continue when the company reports its third quarter earnings on Nov 1.
Earlier this month, the company released a pre-earnings update which supports our view. Per the interim update, Chevron expects third quarter earnings to deteriorate from the previous quarter. In the upstream activities, the update is slightly bullish with oil production expected to be more the previous quarter. On the flip side, the downstream sector outlook is negative as the company expects substantially lower operating results than the last quarter.
Chevron currently holds a Zacks Rank #4 (Sell), implying that it is expected to underperform the broader U.S. equity market over the next one to three months.
However, not all stocks in the energy sector have such gloomy outlook. One can consider Stone Energy Corp. (NYSE:SGY-Free Report),Seadrill Partners LLC (NYSE:SDLP-Free Report) and Linn Energy, LLC (Nasdaq:LINE-Free Report) as good investment options. These stocks currently hold a Zacks Rank #1 (Strong Buy) and are expected to significantly outperform the market in the near term.
Wal-Mart Spreading Out in China
Leading retailer, Wal-Mart Stores, Inc. (NYSE:WMT-Free Report), is geared to expand into the fast-growing market of China. It plans to open more than 100 facilities in the country between 2014 and 2016, which will create approximately 19,000 retail jobs.
Wal-Mart further plans to aid the urbanization of the tier-two, tier-three and tier-four cities of China. The company will thus be able to create demand for its goods while serving the customers better. Moreover, Wal-Mart will be able to lower its cost of sales by utilizing the cheap labor of the country.
Wal-Mart plans to focus mainly on its Supercenters and Sam's Clubs, and has undertaken a major remodeling plan that includes revamping about 45 stores in 2013, 55 stores in 2014 and 65 stores in 2016. The retailer also plans to shut down approximately 9% of its stores, which were underperforming recently.
Wal-Mart also plans to invest in distribution networks and upgrade its warehouses in an effort to augment food safety and reduce costs.
China is a strategic market for Wal-Mart as the global chain is facing difficult retail environment in the U.S. Wal-Mart entered China in 1996 with its Supercenter and Sam's Club in Shenzhen. However, it has not been able to gain market share in the country, as it is facing stiff competition from several local players.
Although the low price business model was a big hit in the U.S., the retailer has not been able to set a firm foot in the Chinese market as consumers look for cheaper deals online and in local retail shops. Wal-Mart is facing difficult retail conditions in the country following the recent slowdown of the economy's growth. Moreover, amid several legal issues, the grocery giant also had to part ways with its Indian joint venture partner, Bharti Enterprises.
In such a situation, the investment in China is particularly significant as it may help Wal-Mart capture the world's second largest economy. Walmart had plans to open 100 stores in China by 2015. The retailer will further try to adapt to the changing Chinese landscape by upgrading its merchandise, operations and customer experience.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock 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.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on CVX - FREE
Get the full Report on SGY - FREE
Get the full Report on SDLP - FREE
Get the full Report on LINE - FREE
Get the full Report on WMT - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
SOURCE Zacks Investment Research, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article