Wednesday, January 17, 2018
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 (NYSE:PFE), Chevron (CVX) and Cisco (CSCO). 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 >>>
Buy-rated Pfizer’s shares have outperformed the peer group over the last six months (the stock is up +9.7% over this period vs. a +7.9% increase for the Zacks Large-Cap Pharmaceuticals industry). Pfizer is working on strengthening its product portfolio through acquisitions and licensing deals. However, Pfizer continues to face headwinds in the form of genericization of key drugs, lost alliance revenues, pricing pressure and rising competition, factors which are hurting the top-line.
Though Pfizer’s growing immuno-oncology portfolio offers strong potential, many of these assets are in early stage of development. Nonetheless, the Zacks analyst new products like Ibrance, contribution from acquisitions, cost-cutting efforts and share buybacks should help the company achieve its guidance.
Pfizer also boasts a strong pipeline and expects approximately 25 to 30 drug approvals over the next five years, including around 15 products with blockbuster potential. Bavencio is being considered a key long-term growth driver.
The company has a mixed record of earnings surprises in recent quarters. Estimates have remained stable ahead of its Q4 results.
(You can read the full research report on Pfizer here >>>).
Shares of Chevron have risen +27.3% in the past six months,, outperforming the Zacks Integrated Oil industry's +22%, while larger rival ExxonMobil (NYSE:XOM) has seen its scrip go up just +7.9% over the same time period. The second-largest U.S. oil producer has been a beneficiary of the recovery in commodity prices.
Importantly, Chevron was able to cover its investment and payouts with cash from operations in the most recent quarter -- something investors really want right now. The diversified oil company also has a long, consistent dividend paying record and is one of the only two energy stocks on the list of Dividend Aristocrats.
However, the Zacks analyst remains worried over signs of headwinds in Chevron's U.S. production, while exposure to production in the vulnerable and violence-prone regions in Nigeria poses additional risk. Hence, investors should wait for a better entry point before buying shares in the oil major.
(You can read the full research report on Chevron here >>>).
Buy-rated Cisco’s shares have outperformed the Zacks Networking industry over the past one year, gaining +35% vs. +33.4%. Recently, it unveiled the Cisco Security Connector, which is now available in the App Store on iOS devices. The Zacks analyst thinks the company’s expanding footprint in the rapidly growing security market represents a significant growth opportunity.
Additionally, partnerships with Telenor, Apple (NASDAQ:AAPL), IBM (NYSE:IBM) and Microsoft (NASDAQ:MSFT) are positives. Also, the company’s Application Centric Infrastructure (ACI) solution is currently used by more than 4K customers. The ACI solution was recently enhanced with new features that have aided growth. Further, the planned acquisition of Broadsoft will boost company's recurring revenue base.
Moreover, the company's collaboration with Google (NASDAQ:GOOGL) Cloud to offer hybrid cloud solution is a key catalyst. However, intense competition from peers and challenges in the emerging markets remains a headwind.
(You can read the full research report on Cisco here >>>).
Other noteworthy reports we are featuring today include Target (TGT), Las Vegas Sands (LVS) and Dominion Resources (NYSE:D).
More Stock News: This Is Bigger than the iPhone!
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Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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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
Featured Reports
Pentair (PNR) to Gain From Reorganization Amid Project Lags
Per the Zacks analyst, Pentair's plan to separate Water and Electrical businesses will drive growth.
Software Portfolio, Dividends & Buybacks Aid Motorola (NYSE:MSI)
The Zacks analyst is impressed by the company's efforts to reward shareholders.
Community Health (CYH) Lowers Debt Burden with Divestitures
Per the Zacks analyst, Community Health's strategic divestitures, like the recent sale of Clarksdale, Mississippi Hospital, continue to help in reducing its debt level, aiding the bottom line in turn.
UBS Group (UBS) Exhibits Cost Control, Low Rates a Concern
Per the Zacks analyst, UBS Group's cost saving measures to drive operational efficiency are encouraging.
Waste Management's (WM) Cost Cutting Efforts Boost Margins
Per the Zacks analyst, Waste Management's successful cost-reduction initiatives have helped it in accomplishing remarkable gross margin expansion and EBITDA growth over the quarters.
Cognizant (CTSH) Drives on Fast Growing Healthcare Segment
Per the Zacks analyst, higher demand from payer and top-tier consulting clients in the healthcare segment is driving Cognizant's top-line growth.
Acquisitions Aid HCA Holdings (HCA), Bad Debt Bothers
Per the Zacks analyst, although accretive acquisitions aid HCA Holdings' revenue base, continuously rising level of bad debts increases financial risk.
New Upgrades
Dominion (D) to Gain From Inorganic Moves, Green Power Focus
The Zacks analyst believes Dominion Energy will gain from its decision to merge with SCANA and focus to produce more electricity from renewable sources.
Target's (TGT) Omnichannel & Restock Program to Boost Sales
Per the Zacks analyst, Target's omnichannel efforts, diversification of assortments and flexible format stores bode well. The company's Restock Program is also gaining traction.
Las Vegas Sands (LVS) Banks on Mass and Non-Gaming Segments
The Zacks analyst believes that Las Vegas Sands' EBITDA margins are improving consistently owing to focus on mass and non-gaming segments that carry higher margins.
New Downgrades
Juno's (JUNO) Heavy Dependence on Celgene (NASDAQ:CELG) for Revenues a Woe
In the absence of approved products, Juno depends on Celgene for revenues. According to the Zacks analyst, if Celgene fails to perform its obligations, Juno's prospects would take a severe hit.
Cheniere (LNG) Wrecked by Huge Debt Burden, Low Cash Flow
A massive debt burden of nearly $25 billion coupled with low internally generated cash flow, has made the Zacks analyst turn bearish on Cheniere Energy.
TELUS (TU) Hurt by Stiff Wireless & Wireline Competition
The Zacks analyst is worried about the stiff competition TELUS continues to face from Bell Canada on the wireless side and Shaw Communications on the wireline side.
Target Corporation (NYSE:TGT
Pfizer, Inc. (PFE): Free Stock Analysis Report
Las Vegas Sands Corp. (LVS): Free Stock Analysis Report
Dominion Energy Inc. (D): Free Stock Analysis Report
Chevron Corporation (NYSE:CVX
Cisco Systems, Inc. (NASDAQ:CSCO
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