Top Stock Reports for Pfizer, Charles Schwab & Vale

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Wednesday, April 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), Charles Schwab (SCHW), and Vale S.A. (VALE). 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 >>>

Shares of Pfizer have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+48.1% vs. +35.8%), with the company's industry-leading Covid vaccines/treatments driving the momentum. 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 its long-term growth drivers beyond its COVID-related products due to competitive pressure.
(You can read the full research report on Pfizer here >>>)

Shares of Charles Schwab have outperformed the Zacks Financial - Investment Bank industry over the past year (+21.0% vs. -0.7%). The Zacks analyst believes that strategic acquisitions have reinforced Schwab's position as a leading brokerage player. The same will likely be accretive to earnings. Offering commission-free trading has led to a rise in client assets and brokerage accounts, thereby improving trading revenues.

Schwab's efficient capital deployments reflect a solid balance sheet position, through which it will enhance shareholder value. However, despite expectations of a few rate hikes, relatively lower interest rates will likely keep hurting margins in the near term. Elevated operating expenses might hamper the company's bottom-line growth to an extent.

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

Vale shares have gained +22.9% over the past year against the +8.2% gain for the S&P 500 index on the back of the mining giant's exposure to favorable pricing outlook for iron ore, Copper and nickel. The Zacks analyst believes that the company is expected to end this year with higher production capacity, after the ramp-up of the tailings filtration plants at the Itabira and Brucutu sites and their respective additions in tailings storage capacity. 

Efforts to improve productivity, the introduction of more high-quality ore in the market, and control costs will also favor its results. Backed by its solid cash flow, Vale continues to lower debt levels while continuing to invest in projects that will drive growth for the company. Vale has inked an agreement to sell its coal business to focus on its core businesses and become a leader in low-carbon mining company.

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

Other noteworthy reports we are featuring today include Citigroup Inc. (C), HCA Healthcare, Inc. (HCA), and Palo Alto Networks, Inc. (PANW).

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

COVID Vaccine & Pill to Drive Pfizer's (PFE) 2022 Sales

Strategic Acquisitions Aid Schwab (SCHW) Amid Lower Rates

Vale (VALE) Rides on Rising Iron Ore Prices & Cost Control

Featured Reports

Citigroup (C) Progresses on Strategic Sales Amid Rising Costs
Per the Zacks analyst, Citigroup's progress on the consumer banking business exit will help focus on core operations. Yet, revamping technology and risk management framework might elevate expenses.

Improving Top Line, Acquisitions Aid HCA Healthcare (HCA)
Per the Zacks analyst, its growing revenues driven by increasing admissions have led to significant growth. Strategic acquisitions have helped it expand and remain a driving factor.

Palo Alto (PANW) Rides on Product Strength, Marketing Effort
Per the Zacks analyst, Palo Alto Networks is gaining from solid contributions of its growth-oriented products including Strata, Prisma and Cortex. Increasing marketing efforts are also positive.

Cost Management, Focus on Permian Basin Aid Occidental (OXY)
Per the Zacks analyst Occidental's efficient cost management and expansion of its operation Permian Basin through acquisition of Anadarko will drive its performance over the long run.

TransUnion (TRU) Rides on Acquisitions, High Debt a Concern
The Zacks analyst likes TransUnion's acquisition strategy to expand its product portfolio and enter new markets. However, high debt may limit its future expansion and worsen its risk profile.

Illumina (ILMN) Grows Internationally Amid Increasing Costs
The Zacks analyst is upbeat about Illumina's robust performances across the EMEA, Greater China and APJ regions. Yet, escalating costs are building significant pressure on the company's bottom line.

Dollar Tree's (DLTR) Store-Growth Initiatives Bode Well
Per the Zacks analyst, Dollar Tree made significant progress toward optimizing its store portfolio via openings, renovations, re-banners and closings. It expects opening 590 stores during fiscal 2022.

New Upgrades

Murphy USA (MUSA) to Gain from Proximity to Walmart Stores
The Zacks analyst likes the proximity of Murphy USA's fuel stations to Walmart supercenters and the consistent traffic that it brings.

Yelp (YELP) Benefits from Increasing Advertising Revenues
Per the Zacks analyst, increase in the number of paying advertising locations and improved productivity from advertising sales force are bolstering Yelp's ad revenues.

Loan Growth, Acquisitions Support F.N.B. Corp (FNB) Top Line
Per the Zacks analyst, supported by robust loan balances and strategic acquisitions, F.N.B. Corp is poised for top-line growth. Its technological advancements and capital deployments are impressive.

New Downgrades

Higher Production Costs Ail Agnico Eagle Mines (AEM)
The Zacks analyst is concerned that higher costs of consumables and supplies will have an unfavorable impact on the company's production costs and weigh on its bottom line.

Endo's (ENDP) Generic Business Faces Stiff Competition
The Zacks Analyst is concerned about Endo International's generics base business which continues to remain under pressure given the challenging competitive landscape and pricing pressures.

Supply Woes, Increasing Costs Hurt Universal Display (OLED)
Per the Zacks analyst, Universal Display continues to deal with the pandemic-triggered supply chain challenges along with increasing input material costs, which directly weigh on its bottom line.

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
Citigroup Inc. (C) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
VALE S.A. (VALE) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
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