Top Analyst Reports for Pfizer, Raytheon Technologies & Diageo
Wednesday, July 13, 2022
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 Pfizer Inc. (PFE), Raytheon Technologies Corp. (RTX), and Diageo plc (DEO). 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 >>>
Pfizer shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+34.7% vs. +17.6%). The company boasts a diversified portfolio of innovative drugs and vaccines including Ibrance and Prevnar. The zacks analyst believes that no company is as strongly placed in the COVID vaccines/treatment market as Pfizer right now.
Its COVID-19 vaccine has become a key contributor to the top line. The vaccine together with Pfizer’s promising oral antiviral pill for COVID-19, Paxlovid is expected to generate a combined $54 billion in sales in 2022. Pfizer boasts a sustainable pipeline with multiple late-stage programs that can drive growth.
However, currency headwinds and pricing pressure are key top-line headwinds. Concerns remain about long-term growth drivers beyond its COVID-related products due to competitive pressure.
(You can read the full research report on Pfizer here >>>)
Raytheon Technologies shares have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+13.4% vs. -0.8%). The company continues to receive ample orders for its combat-proven defense products from the Pentagon. It expects both domestic and international program growth to boost its defense business.
Raytheon achieved $90 million of incremental merger synergies in the first quarter. Looking ahead, the company aims at achieving $335 million of incremental cost synergies during 2022. The stock holds a solid solvency position.
However, economic sanctions imposed by governments in response to Russia’s invasion in Ukraine might hurt Raytheon. A comparative analysis of its trailing 12-month Price/Book ratio reflects a relatively gloomy picture. Purchase order declines, witnessed lately, with original equipment manufacturer customers delaying orders pose a risk to the stock.
(You can read the full research report on Raytheon Technologies here >>>)
Diageo shares have declined -9.6% over the past year against the Zacks Beverages - Alcohol industry’s decline of -10.0%. The company is facing continued inflationary pressures and also currency headwinds are concerning. Nevertheless, margin growth was driven by supply productivity savings and price increases, which more than offset the higher cost inflation.
It provided a decent view for fiscal 2022, with organic sales momentum likely to continue in the second half of fiscal 2022. However, continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains, which also aided the company’s first-half fiscal 2022 performance.
The company witnessed sales, operating margin and earnings growth in first-half fiscal 2021 driven by organic sales growth across all regions. Strong recovery in gross margin and operating cost leverage along with higher marketing investments aided organic operating margin growth.
(You can read the full research report on Diageo here >>>)
Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), Infosys Ltd. (INFY) and Canadian Pacific Railway Ltd. (CP).
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
Pfizer's (PFE) 2022 Sales to Ride on COVID Vaccine & Pill
Order Growth Aids Raytheon (RTX), Sanction Impacts Hit
Diageo's (DEO) Focus on Premium Brands to Boost Growth
Featured Reports
AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth
The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline. It has several new drugs which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Digital Transformation, AI Proliferation Aid Infosys (INFY)
Per the Zacks analyst, Infosys is benefiting from large deal wins and higher investments by clients in digital transformation, artificial intelligence and automation.
Canadian Pacific (CP) Rides on Dividends Amid Rising Expenses
The Zacks analyst likes the shareholder-friendly measures adopted by Canadian Pacific. However, rising operating expenses are concerning as they are likely to keep the bottom line under pressure.
Permian Basin Focus, Cost Management Aid Occidental (OXY)
Per the Zacks analyst Occidental's acquisition of Anadarko expanded its operation in resource rich Permian Basin and efficient cost management will drive its performance over the long run.
Aspen (AZPN) to Gain From Product Portfolio & Acquisitions
Per the Zacks analyst, Aspen's diversified product portfolio is witnessing heathy momentum. The integration with Emerson???s OSI Inc and the Geological Simulation Software business also bodes well.
Solid BBD Portfolio Aids Highwoods (HIW) Amid Rate Hike Woes
Per the Zacks Analyst, Highwoods' assets in the best business districts (BBDs) will likely enjoy steady demand amid recovery in office market fundamentals. However, interest rate hike is a concern.
Teladoc (TDOC) Gains From Buyouts, Rise in Telehealth Visit
Per the Zacks analyst, Teladoc's strategic acquisitions are enhancing distribution capabilities and service offerings. Also, a surge in telehealth visits is stimulating membership growth.
New Upgrades
Cenovus (CVE) to Gain From Alberta Tucker Asset Divestment
The Zacks analyst is upbeat about Cenovus' divestment of the Tucker thermal asset in Alberta. The divestment will help reduce its debt burden and raise shareholder returns.
Strong Segmental Growth, Notable Buyouts Aid STERIS (STE)
The Zacks analyst is upbeat about STERIS' strong sales in the Healthcare, Applied Sterilization Technologies and Life Sciences arms. Cantel Medical and Synergy Health buyouts also aid sales growth.
New Customers, Robust Omnipod DASH Sales Aid Insulet (PODD)
The Zacks analyst is bullish about solid new customer gains and increasing volume growth through the U.S. pharmacy channel of Insulet. Also, the robust global uptake of Omnipod DASH seems encouraging.
New Downgrades
High Costs & Low Iron Ore Prices to Hurt BHP Group (BHP)
The Zacks Analyst is concerned lower iron ore prices amid persistent worries about weak demand in top consumer China as well as escalated input costs will impact BHP's results.
Escalated SG&A Costs Hurt Helen of Troy's (HELE) Profits
Per the Zacks analyst, Helen of Troy is seeing higher SG&A costs. In fiscal first-quarter consolidated SG&A ratio rose 6.1 percentage points due to higher personnel and marketing costs among others.
Rising Rates & Higher Costs Hurt D.R. Horton's (DHI) Prospects
Per the Zacks analyst, D.R. Horton may witness lower demand given rising interest rates, continued supply chain disruptions that are affecting affordability of the prospective buyers.
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Pfizer Inc. (PFE) : Free Stock Analysis Report
Infosys Limited (INFY) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report
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