For Immediate Release

Chicago, IL July 10, 2020 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: Tesla TSLA, Toyota TM, Exxon Mobil XOM, Nikola NKLA and Ford Motor Company F.

Here are highlights from Thursdays Analyst Blog:

Will Tesla Mean the End of Oil?

Tesla, a company that built its millionth car (less than 10% of Toyotas annual volume) earlier this year, is now the most valuable automotive enterprise on earth. The financial world is pricing in an imminent electronic vehicle (EV) takeover and the eventual obsolescence of oil.

Oil stocks have been stumbling since their high in the summer of 2014. Global oil production has been on the rise for decades, but it appears that demand has been lagging output, according to the International Energy Agency (IEA).

The world is working towards sustainability, moving away from fossil fuels like oil & gas. EVs have been taking center stage in this push towards a more sustainable planet. Tesla has been the primary beneficiary of this movement as its market value soars past the old oil giant Exxon Mobil, whose market value has plummeted 58% since its 2014 high (down 42% in 2020 alone).

Tesla and the rise of EVs are disrupting not only the automotive industry but long-term oil demand. We are seeing a massive economic shift towards tech, and it doesnt look like oil is on board.

The COVID Effect

This pandemic has seemingly compressed 5 years of digitalization into only 5 months, and electric cars have continued to perform with this tech-driven tail wind filling its performance sails. Despite the economic recession, Tesla was able to deliver over 90,000 vehicles, blowing analysts 72,000 delivery estimates out of the water.

The world wants EVs, and with Teslas China Gigafactory ramping up production and the Berlin Gigafactory anticipating to start production by next, they are ready to give it to them.

Tesla is not the only EV beneficiary of this tech driving pandemic. Nikola recently debuted its shares to the public through an unconventional acquisition, and the share price has been flying ever since. Nikola, a company that has yet to produce a single-vehicle, is now valued at roughly the market cap as the more than a century-old Ford Motor Company.

Future Of Oil

Oil businesses used to be the most valuable companies in the S&P 500 even a decade ago, with money pouring into these enterprises, like water from a spring. Historically, as the world population has grown, so has its appetite for oil, but an economic shift is upon us.

The oil & gas industry is just beginning to be uprooted by renewable energies and electric cars. Our oil appetite is dwindling, very slowly let me add, but still diminishing. I expect to see continued consolidation in this field in the years to come, as it is typical of maturing to declining industries.

The Takeaway

The global pandemic may have catalyzed the current slump in gas prices, but it foreshadows what is to come. Innovation-driven businesses like Tesla and maybe even Nikola will drive growth through the next decade while oil companies are forced to cut costs and scale to drive shareholder returns.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?

Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Dont miss your chance to get in on these long-term buys.Access Zacks Top 10 Stocks for 2020 today >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Story continues

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 assumedthat 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 andis 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 https://www.zacks.com/performancefor 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 reportFord Motor Company (F) : Free Stock Analysis ReportExxon Mobil Corporation (XOM) : Free Stock Analysis ReportToyota Motor Corporation (TM) : Free Stock Analysis ReportTesla, Inc. (TSLA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.

View original post here:

The Zacks Analyst Blog Highlights: Tesla, Toyota, Exxon Mobil, Nikola and Ford Motor Company - Yahoo Finance