Top Stock Reports for The Home Depot, Elevance Health and BP – October 26, 2022

Wednesday, October 26, 2022

Zacks Research Daily presents the best research results of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including The Home Depot, Inc. (HD), Elevance Health Inc. (ELV) and BP plc (BP). These research reports have been selected from around 70 reports published by our analyst team today.

You can do it see all research reports today here >>>

The Home Depot shares have underperformed the Zacks Building Products – Retail industry over the past year (-21.4% vs. -18.6%). The company reported soft gross margins in the fiscal second quarter driven by higher investment in the supply chain. Higher inventory levels and interest expense remain concerning.

However, The Home Depot reported its ninth straight quarter of earnings and sales in the fiscal second quarter. The results were derived from strong demand for home improvement projects, stable trends in the housing market and continued investment.

The company also benefited from continued strength in both the Pro and DIY categories, as well as digital momentum. A cohesive retail strategy and underlying technology infrastructure have helped drive web traffic steadily over the past few quarters, helping digital sales.

(You can do it read the full research report on The Home Depot here >>>)

Shares of Elevance Health has outperformed the Zacks Medical Services industry over the past year (+20.1% vs. -36.4%). The company’s top line improvement can be attributed to premium rate increases and higher memberships. Acquisitions and collaborations have enabled the company to strengthen its business portfolio.

The strong performance of its Medicare and Medicaid businesses, along with several contract wins, is expected to drive its membership forward. Adjusted net income is expected to be more than $28.95 per share, higher than the previous outlook of more than $28.70.

However, the company’s rising costs continue to put pressure on margins. Declining cash flows are also a concern. Its heavily indebted balance sheet of more than $21 billion could affect its financial flexibility. As such, the stock warrants a cautious stance.

(You can do it read the full Elevance Health research report here >>>)

BPs shares have gained +8.2% over the past year versus the Zacks Oil and Gas – Integrated – International industry gain of +34.3%. The company has a strong portfolio of upstream projects, supporting impressive production growth. The company is proud that the target of adding net production of 900 thousand barrels of oil equivalent per day by 2021 from the main projects has been successfully met.

BP has set out an aggressive energy transition plan to capitalize on the increasing demand for clean energy. Currently, high oil prices are helping the company’s upstream operations. Notably, BP announced plans to undertake a $3.5-billion share buyback, which is expected to be completed before reporting third-quarter results.

However, the company’s balance sheet is more attractive than most peers, thereby limiting its financial flexibility. Also, rising costs and expenses are adversely affecting the energy giant’s profits. As such, the stock warrants a cautious stance.

(You can do it read the full BP research report here >>>)

Other notable reports we’re featuring today include Citigroup Inc. (C), Gilead Sciences, Inc. (GILD), and ServiceNow, Inc. (NOW).

Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a renowned expert on consolidated returns. He is frequently quoted in print and electronic media and publishes weekly Income Trends and Earnings Preview reports. If you would like an email notification whenever Sheraz publishes a new article, please click here>>>

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