Thursday, September 19, 2024The 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), Salesforce, Inc. (CRM) and BHP Group Ltd. (BHP), as well as a micro-cap stock Oil-Dri Corp. of America (ODC). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.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 >>>Exxon Mobil shares have outperformed the Zacks Oil and Gas – Integrated – International industry over the past year (+2.2% vs. -1.4%). The company being a reliable player in the energy sector, boasts a resilient capital structure, a robust balance sheet and track record of prudent capex management. Its strategic discoveries in the Stabroek Block and Permian Basin promise growth and lower greenhouse gas intensity. ExxonMobil prioritizes shareholder returns, evidenced by substantial share buybacks. ExxonMobil’s entry into the lithium market positions it for long-term gains as the demand for lithium is poised to increase with the growing adoption of electric vehicles. However, challenges loom, notably in the upstream operations, which are susceptible to volatile oil prices and regulatory hurdles. Increasing societal focus on environmental risks and climate change pose a threat to its traditional oil & gas business. Further, exposure to OPEC production cuts adds to uncertainties.(You can read the full research report on Exxon Mobil here >>>)Shares of Salesforce have gained +17.7% over the past year against the Zacks Computer – Software industry’s gain of +30.2%. The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line. Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned it as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuous expansion of generative AI offerings will help it tap the growing opportunities in the space. According to the Zacks analyst estimates Salesforce revenues are expected to witness a CAGR of 8.6% through fiscal 2025-2027. However, stiff competition and unfavorable currency fluctuations are concerns. Softening IT spending amid ongoing macroeconomic uncertainties might hurt its growth prospects.(You can read the full research report on Salesforce here >>>)BHP’s shares have declined -3.5% over the past year against the Zacks Mining – Miscellaneous industry’s decline of -5.0%. The company expects iron ore production for fiscal 2025 at 255-265.5 Mt. The midpoint of the range indicates in-line results with fiscal 2024. Its copper guidance of 1,845-2,045 kt indicates 4% growth at the midpoint. Iron ore prices have declined 33% year to date due to weak demand in China. Copper prices will also likely be impacted by contraction in the manufacturing sector. While the increase in production might boost BHP’s results, it will be offset by lower prices and higher costs. The Zacks analyst expects a recovery in iron ore prices aided by infrastructure demand in the United States. The long-term outlook for copper prices remains positive, supported by demand for electric vehicles. BHP’s investment in projects focused on future-facing commodities and its efforts to improve operational efficiency through technology will also drive growth.(You can read the full research report on BHP here >>>)Shares of Oil-Dri have outperformed the Zacks Chemical – Diversified industry over the past year (+6.9% vs. -0.5%). This microcap company with market capitalization of $494.38 million has acquired Ultra Pet Company, which strengthens its position in the high-growth crystal cat litter segment and is expected to boost earnings. ODC’s third-quarter fiscal 2024 sales reached $106.8 million, marking 12 consecutive quarters of year-over-year growth.The company increased its dividend 7% for the 21st consecutive year. Product launches like Cat’s Pride Antibacterial Clumping Litter enhance its competitive edge. Yet, SG&A expenses grew 51% year over year in third-quarter fiscal 2024, reducing operating income 28%. Agricultural and animal health product sales fell 24% and 17% year over year, respectively. ODC's heavy reliance on Walmart for a significant portion of its sales makes its revenues vulnerable to volatility. High advertising costs impacted the company's profitability.(You can read the full research report on Oil-Dri here >>>)Other noteworthy reports we are featuring today include SAP SE (SAP), Cintas Corp. (CTAS) and The PNC Financial Services Group, Inc. (PNC).Mark VickerySenior EditorNote: 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's (XOM) Starbroek & Permian Oil Discoveries Aid

Digital Transformation and Acquisitions Aid Salesforce (CRM)

Investments to Drive BHP Group (BHP) Amid Price Volatility

Featured Reports

Uniform Rental Unit Aids Cintas (CTAS) amid Rising Costs Per the Zacks analyst, Cintas' Uniform Rental and Facility Services unit is driven by the penetration of additional products and services into existing customers. High costs remain a concern.

Strategic Alliances Aid PNC Financial (PNC), High Costs AilPer the Zacks Analyst, PNC Financial's partnership with TCW Group is set to help it gain a significant share of the expanding private credit market. Yet, the rising expense base is a concern.

Robust Surgical Business Aid Alcon (ALC), Margin Issues StayThe Zacks analyst is impressed with Alcon's diverse portfolio and incremental innovation that is driving the Surgical business' growth. Yet, mounting expenses are putting pressure on margins.

Sysco (SYY) Gains on Growing Food-Away-From-Home ChannelPer the Zacks analyst, Sysco is benefiting from upswing in its Food-Away-From-Home channel. In the fourth quarter of fiscal 2024, the company saw a 3.5% increase in U.S. Foodservice volume.

United Therapeutics' (UTHR) PAH Portfolio Drives GrowthThe Zacks Analyst believes that demand for United Therapeutics' PAH medicines is strong. Potential approvals for expanded use of Orenitram and Tyvaso and its pipeline can drive long-term growth

Ryder (R) Benefits From Dividends & Buyback Amid High DebtThe Zacks analyst likes the shareholder-friendly measures adopted by Ryder. However, high debt does not bode well for its bottom line.

Premier Office Spaces Demand to Aid Cousins Properties (CUZ)Per the Zacks analyst, Cousins Properties' strengths arise out of its Class A office asset portfolio in the high-growth Sun Belt markets. However, competition and high supply are concerns.

New Upgrades

Solid Momentum in Cloud Business Driving SAP's PerformancePer the Zacks Analyst, SAP's performance is benefitting from its strengthening cloud business, mainly Rise with SAP solution. Its Business AI offerings also gaining steady traction.

Marathon's (MPC) Buyback Focus Improves Shareholder ReturnThe Zacks analyst likes Marathon Petroleum's commitment to shareholder value through aggressive buybacks. Since May 2021, it has reduced its share count by nearly 50%.

Universal Health (UHS) Rides on Solid Acute Care PlatformPer the Zacks Analyst, growing patient admissions and expansion initiatives in the Acute Care Hospital Services unit drives revenue growth. An adequate cash balance ensures business investments.

New Downgrades

Competition From Clean Fuel Sources Ail Arch Resources (ARCH)Per the Zacks analyst, Arch Resources' results are adversely impacted as emissions concerns push coal back in comparison with other clean fuel sources. Strict regulations also act as a headwind.

Soft Housing Market & Increased Expenses Hurt RH's ProspectsPer the Zacks analyst, RH's prospects are hurt due to an unaddressed backlog, long special orders lead times and increased costs and expenses. Also, soft housing market trends add to the concerns.

Dillard's (DDS) Sales Hurt By a Tough Operating LandscapePer the Zacks analyst, Dillard's is struggling with a tough retail environment due to the cautious buying behavior of consumers. This is hurting sales, which fell 4.9% in second-quarter fiscal 2024.

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

The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report

Salesforce Inc. (CRM) : Free Stock Analysis Report

Exxon Mobil Corporation (XOM) : Free Stock Analysis Report

BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report

SAP SE (SAP) : Free Stock Analysis Report

Cintas Corporation (CTAS) : Free Stock Analysis Report

Oil-Dri Corporation Of America (ODC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research