Top Analyst Reports for NVIDIA, Pfizer & Citigroup

Monday, October 10, 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 NVIDIA Corporation (NVDA), Pfizer Inc. (PFE) and Citigroup Inc. (C). 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 >>>

NVIDIA shares have underperformed the Zacks Semiconductor - General industry over the past year (-41.6% vs. -38.8%). The company’s near-term prospect looks gloomy due to weakening demand for its chips used in gaming and data center end markets. While the macroeconomic headwinds are impacting gaming chip demand, ongoing supply-chain issues are also hurting data center chip market.

The ongoing war between Russia and Ukraine is likely to continue negatively impact NVIDIA’s near-term revenues. Trade war between the US and China also remains a key concern.

However, solid uptake of artificial intelligence-based smart cockpit infotainment solutions is likely to aid NVIDIA growth. Additionally, collaboration with the likes of Mercedes-Benz and Audi is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space.

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

Pfizer's shares have gained +0.6% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +5.6%. The company is strongly placed in the COVID vaccines/treatment market right now. Its COVID-19 vaccine together with the oral antiviral pill, 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.

Our estimates for Pfizer’s top line suggest a CAGR decline of around 30% over the next three years. Estimates are stable ahead of Q3 earnings. Pfizer has a decent record of earnings surprises in the recent quarters

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

Citigroup shares have underperformed the Zacks Banks - Major Regional industry over the past year (-41.2% vs. -29.1%). The company is burdened with numerous investigations and lawsuits, along with transformational expenses, which are limiting its bottom-line growth. The elimination of overdraft fees will impede fee income growth in the near term.

However, Citigroup’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. It is progressing with its strategy to exit the global consumer banking business. With this, it will focus on institutional franchises, thereby improving long-term profitability.

The bank also intends to wind down its UK retail banking business, and expand personal banking and wealth management businesses in the region. Also, net interest income growth, decent liquidity and capital deployment plans are positives

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

Other noteworthy reports we are featuring today include Vertex Pharmaceuticals Incorporated (VRTX), Humana Inc. (HUM), and Canadian Natural Resources Limited (CNQ).

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

NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships

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

Citi's (C) Streamlining Efforts Aid Amid Increasing Expenses

Featured Reports

Diverse Production Mix to Aid Canadian Natural (CNQ)
The Zacks analyst believes that Canadian Natural's diverse production mix of synthetic oil, heavy crude oil, natural gas and light crude oil facilitates long-term value and reduces risk profile.

Activision (ATVI) Banks on Franchise Strength, User Addition
Per the Zacks Research analyst, expanding user base driven by strength in popular gaming franchises is aiding Activision's top-line amid rising competition.

Intercontinental (ICE) Banks on Buyouts Amid High Costs
Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies. However, rising expenses weigh on margins.

Investments Aid Sempra (SRE), Severe Weather Impact Woes
Per the Zacks analyst, systematic investments boost Sempra's infrastructure. Yet, its operations are subject to severe weather which can materially increase costs, and impact its earnings.

Otis Worldwide (OTIS) to Gain From Innovations, Costs High
Per the Zacks analyst, Otis Worldwide is poised to gain from diversified portfolio of innovative space-saving and energy-efficient solutions. However, rising input costs raise concern.

Motorola (MSI) Benefitting from Solid Demand Environment
Per the Zacks analyst, Motorola is gaining from healthy demand trends in video security, command centre software and land mobile radio services. However, a debt-laden balance sheet is a concern.

ZTO Express (ZTO) Benefits From Increase in Parcel Volumes
The Zacks Analyst believes that increase in parcel volumes aids ZTO Express' express delivery services unit.

New Upgrades

Vertex (VRTX) Cystic Fibrosis Sales Up, Non-CF Pipeline Solid
Vertex's cystic franchise (CF) sales are rising driven by Trikafta. The Zacks analyst is encouraged by the rapid progress of its non-CF pipeline with data from multiple programs presented in 2022.

Humana (HUM) Strong on Brisk Medicaid Business & Buyouts
Per the Zacks analyst, a robust Medicaid business, courtesy of several contract wins, aids the company in driving the top line. Acquisitions enable it to expand its capabilities.

Lamb Weston (LW) Benefits From Strategic Pricing Actions
Per the Zacks analyst, Lamb Weston is gaining on robust pricing actions. In the fiscal first quarter, price/mix increased 19%, reflecting gains from pricing actions in its core business units.

New Downgrades

Supply Bottlenecks & Soaring Input Costs Hurt Magna (MGA)
Per the Zacks analyst, chip crisis and supply chain woes are ailing Magna's volumes. Also, soaring input prices are weighing on margins that may play spoilsport in near term.

Investments & High Costs to Hurt Dollar Tree (DLTR) Margins
Per the Zacks analyst, inflationary pressures, plans for pricing investment at Family Dollar and consumers' shift to consumables are likely to hurt Dollar Tree's gross margin in 2H 2022.

Stiff Competition Continues to Ail Integer Holdings (ITGR)
The Zacks analyst is worried about Integer Holdings facing intense competition with respect to the manufacturing of its medical products across all of its product lines.

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Citigroup Inc. (C) : Free Stock Analysis Report
 
Pfizer Inc. (PFE) : Free Stock Analysis Report
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
Humana Inc. (HUM) : Free Stock Analysis Report
 
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
 
Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report
 
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