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Top Research Reports for Pfizer, Comcast & salesforce

Sheraz Mian

Tuesday, June 2, 2020

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 (PFE), Comcast (CMCSA) and salesforce.com (CRM). 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’s shares have underperformed the Zacks Large-Cap Pharmaceuticals industry over the past year (-15.4% vs. +10.9%). The Zacks analyst believes that the company’s strong portfolio of new drugs will accelerate growth in 2020 and beyond.

The Consumer Healthcare joint venture with Glaxo, the Array acquisition and the pending merger of Upjohn unit with Mylan, if successful, will make Pfizer a smaller company with a diversified portfolio of innovative drugs and vaccines. The smaller Pfizer should see better revenue growth as the Lyrica LOE cliff will go away.

Pfizer expects continued strong growth of key brands like Ibrance, Inlyta and Eliquis to drive sales in 2020. However, Pfizer expects a significant impact from coronavirus-related business disruption in Q2, which it expects to ease in the second half of 2020. Meanwhile, currency headwinds and pricing pressure are other top-line headwinds.

(You can read the full research report on Pfizer here >>>)

Shares of Comcast have lost -7.9% over the past six months against the Zacks Cable Television industry’s fall of -0.1%. The Zacks analyst believes that Comcast is benefiting from solid high-speed Internet customer wins.

The company’s strategy to provide high-speed Internet at an affordable price plays a pivotal role in improving customer experience. Moreover, increased media consumption and work-from-home wave bode well for Comcast. Growing popularity of Xfinity and Flex products is also a major catalyst. However, Comcast persistently suffers video subscriber attrition due to cord-cutting.

The company’s theme parks are expected to remain shut indefinitely. It expects film results to decline substantially in the second and third quarter due to the rescheduling of Fast and Furious 9 as well as Minions 2 releases in 2021. Moreover, the balance sheet remains significantly leveraged, which is a concern.

(You can read the full research report on Comcast here >>>)

salesforce’s shares have gained +4.1% over the past three months against the Zacks Computer Software industry’s rise of +10.9%. The Zacks analyst believes that the company has been benefiting from a robust demand environment as customers are undergoing a major digital transformation.

The rapid adoption of its cloud-based solutions is driving demand for its products. Continued deal wins in the international market is another growth driver. Furthermore, Salesforce’s recent acquisition of Tableau positions the company to be a leader in business analytics for actionable results in everything from operations to HR.

However, stiff competition from Oracle and Microsoft is a concern. Besides, increasing investments in international expansions and data centers are an overhang on near-term profitability.  

(You can read the full research report on salesforce here >>>)

Other noteworthy reports we are featuring today include Costco Wholesale (COST), Accenture (ACN) and BHP Group (BHP).

5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.

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Sheraz Mian

Director of Research

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

Ibrance & Other Key Drugs to Drive Pfizer's (PFE) Sales

High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)

Digital Transformation and Buyouts Aid salesforce (CRM)

Featured Reports

Decent Comps to Fuel Costco's (COST) Sales, Cost a Concern

Per the Zacks analyst, Costco's growth strategies, decent comps run and strong membership trends are likely to fuel sales.

Accenture (ACN) Rides on Acquisitions Amid Pricing Pressure

The Zacks analyst likes Accenture's buyout strategy to enter new markets, diversify and broaden its portfolio and maintain its leading position.

Liquidity, Efficiency to Aid BHP Group (BHP) Amid Low Prices

The Zacks analyst believes BHP's strong cash flow, focus on lowering debt will drive growth despite lower metal prices.

Strong I&SS Segment Drive Sony (SNE) Amid COVID-19 Worries

Per the Zacks analyst, Sony's Imaging & Sensing Solutions (I&SS) segment continues to benefit from growth in sales of image sensors for mobile products.

Sinopec (SNP) Banks on Gas Discoveries, Refining Hurts

Gas findings in Sichuan & Ordos basins will support large-scale production. However, the firm's weak refining business concerns the Zacks analyst.

Equinix (EQIX) Rides on Strong Interconnection Activity

Per the Zacks Analyst, acceleration in enterprise cloud adoption is driving demand for Equinix's data-center portfolio.

Solid Critical Care Growth Aids Edwards Lifesciences (EW)

The Zacks analyst is impressed with Edwards Lifesciences' robust sales growth in Critical Care.

New Upgrades

MALDI Biotyper's Strength Aids Bruker (BRKR) Amid the Pandemic

The Zacks analyst is impressed with the robust demand for the MALDI Biotyper amid the pandemic. However, fall in organic revenues due to COVID-19 related disruptions is concerning.

Higher Demand, Lower Gas Costs to Aid CF Industries (CF)

According to the Zacks analyst, CF Industries will benefit from higher demand for nitrogen fertilizers in major markets. Lower natural gas costs should also drive its margins.

Box (BOX) Rides On Innovative Cloud Products & AI Platforms

The Zacks analyst believes that Box innovative cloud related products, AI platforms, increasing number of paid customers and strong free cash flow generation will continue to drive growth.

New Downgrades

Higher Costs, Lower Production to Hurt Newmont (NEM)

Per the Zacks analyst, higher production costs will weigh on Newmont's margin. A decline in production due to idling of operations is another concern.

Soft Demand, Coronavirus-Led Disruptions to Hurt Mohawk (MHK)

Per the Zacks analyst, coronavirus-related disruptions, softening demand, along with stiff competition mar growth prospects for Mohawk.

Muted Money Transfer, High Costs Bother Euronet (EEFT)

Per the Zacks analyst, the current market volatility will affect its money transfer, thereby weighing on the margins. Moreover, its escalating expenses continue to bother.

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Pfizer Inc. (PFE) : Free Stock Analysis Report
salesforce.com, inc. (CRM) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
BHP Group Limited (BHP) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
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