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Top Stock Reports for Pfizer, Intel & HCA Healthcare

Mark Vickery
Pfizer's (PFE) PARP inhibitor, Talzenna, receives approval in Europe for treating BRCA-mutated locally advanced or metastatic breast cancer.

Friday, May 3, 2019

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), Intel (INTC) and HCA Healthcare (HCA). 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 in the past six months (-5.7% vs. -1%). Pfizer beat estimates for earnings and sales in the first quarter. Pfizer expects continued strong growth of key product franchises, including Ibrance, Eliquis, and Xeljanz in 2019.

However, The Zacks analyst thinks loss of exclusivity on key drugs in the United States, mainly Lyrica and currency headwinds will likely significantly hurt 2019 sales. Other top-line headwinds are weak sales in the sterile injectables portfolio, pricing pressure and rising competition.

To offset the threat of generic competition, Pfizer is strengthening its pipeline as well as oncology portfolio. Pfizer looks well positioned to deliver several potential new breakthrough innovative medicines in the next five years, which can drive long-term growth. Biosimilars are also expected to contribute to growth in 2019.

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

Shares of Intel have outperformed the Zacks General Semiconductor industry in the past year, losing -4.3% vs. a decline of -7.4%. Intel reported stellar first-quarter results. Rising demand witnessed in company’s higher performance products, both in data center and client domains acted as a catalyst.

The Zacks analyst thinks the company is benefiting from robust performance of the DCG, IoT Group, NVM Solutions and PSG. The company’s strategy of expanding TAM beyond CPU to adjacent product lines like silicon photonics, fabric, network ASICs, and 3D XPoint memory is bearing fruit. However, a declining trend in PC shipments is detrimental to business prospects of Intel, which continues to depend substantially on PC sales.

Further, the company provided a tepid forthcoming outlook. Weaknesses in demand from China, softness in NAND flash pricing trends, delay in transition to 10-nm process are other concerns. Moreover, intensifying competition remains a headwind.

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

Buy-Ranked HCA Healthcare’s shares have outperformed the Zacks Hospital industry in the past year, gaining +28.7% vs. +13.1%. HCA Healthcare’s first-quarter 2019 beat expectations and increased year over year on the back of higher admissions and revenues.

The Zacks analyst thinks its top line has been growing over the last several quarters on higher admissions, volume growth, etc. Multiple acquisitions helped the company gain a strong foothold in the industry, fueling its inorganic growth.

A strong balance sheet and free cash flow are other positives for the company. However, high operating expenses are persistently weighing on its margins. The company is expected to witness a rise in costs due to its constant growth-related investments. Its high leverage is another concern.

(You can read the full research report on HCA Healthcare here >>>).

Other noteworthy reports we are featuring today include Activision (ATVI), Xilinx (XLNX) and Cummins (CMI).

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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) New Drugs to Push Sales Amid Generic Woes

Intel (INTC) Rides on Product Rollouts Amid 10nm Delay

Growing Revenues, Inorganic Growth Aid HCA Healthcare (HCA)

Featured Reports

Xilinx (XLNX) Rides on Solid Growth in Communications Market

Per the Zacks analyst, strength across the wireless communications market, driven by the 5G momentum, is a key catalyst for Xilinx.

Investments, Customer Additions Aid American Water (AWK)

Per the Zacks analyst, American Water's investment of $8-$8.6B in next five years to strengthen infrastructure and customer growth via organic and inorganic ways will boost its operations.

Twilio (TWLO) Banks on Burgeoning Active Customer Accounts

Per the Zacks analyst, Twilio's steady focus on introducing products and pursuing its go-to-market sales strategy is helping strengthen its active customer accounts, which is driving the top line.

Cabot (COG) to Benefit from Marcellus Acreage Holdings

The Zacks analyst believes that Cabot's large acreage holdings in the fast-growing Marcellus Shale would support its 2019 production growth target of 20%.

Dolby (DLB) Rides on Solid Licensing Unit, Liquidity Strength

Per the Zacks analyst, Dolby is well poised to gain from increasing content in Dolby Vision and Dolby Atmos, coupled with growth in Dolby Cinema.

Acquisitions, Loan Growth Aid Raymond James' (RJF) Revenues

Per the Zacks analyst, opportunistic acquisitions, strong balance sheet and rise in loan balances will support Raymond James' revenues.

Maxim (MXIM) Rides on Automotive Strength Amid Soft Demand

Per the Zacks analyst, growing production of electric vehicles is aiding Maxim's growth in automotive space.

New Upgrades

Unit &RevPAR Growth to Drive Hilton's (HLT) Performance

Per the Zacks analyst, Hilton's continues to benefit from robust Unit and RevPAR Growth as well as industry-leading loyalty program. For 2019, Hilton anticipates net unit growth of 6.5%.

Cummins (CMI) Gains From North America's Truck Production

Per the Zacks analyst, augmented medium and heavy-duty truck production in North America owing to robust backlog is driving Cummins' engine and component sales.

Harris (HRS) Buoyed by Strong Order Trends & Merger Deal

Per the Zacks analyst, multiple contract wins from U.S. federal customers augur well for Harris' healthy top-line growth. Also, the approval of shareholders for the L3-Harris merger deal is laudable.

New Downgrades

Lower In-Game Revenues, Higher Costs Hurt Activision (ATVI)

Per the Zacks analyst, lower in-game revenues, higher costs and increase in investments is hurting Activision's profitability amid rising competition.

Input Costs & Divestitures to Dent Kellogg's (K) Bottom-Line

Per the Zacks analyst, high input costs are a drag on Kellogg's bottom-line, as also witnessed in the first quarter. Further, management has cut the view for 2019 due to divestitures.

Soft Sales at Unum International, High Costs Ail Unum (UNM)

Per the Zacks analyst, lower sales at Unum International, persistent soft results at Closed Block and Corporate segment and rise in total benefits and expenses are weighing on margins.

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Xilinx, Inc. (XLNX) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
Cummins Inc. (CMI) : Free Stock Analysis Report
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
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