Yahoo Finance Top Analyst Reports for Pfizer, Abbott Laboratories & Union Pacific
Wednesday, January 18, 2023
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), Abbott Laboratories (ABT) and Union Pacific Corporation (UNP). 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 underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-13.9% vs. +14.6%), with the absence of credible growth drivers beyond the company's Covid offerings as the primary drag. Other issues like currency headwinds and pricing pressures are some of the other concerns.
Estimates have gone down slightly ahead of Q4 earnings. Pfizer has a mixed record of earnings surprises in the recent quarters. However, Pfizer boasts a diversified portfolio of innovative drugs and vaccines, including Ibrance and Prevnar.
Its COVID-19 vaccine and oral antiviral pill for COVID-19, Paxlovid have become a key contributor to the top line. Pfizer boasts a sustainable pipeline with multiple late-stage programs that can drive growth.
(You can read the full research report on Pfizer here >>>)
Abbott Laboratories shares have declined -10.1% over the past year against the Zacks Medical - Products industry’s decline of -38.4%. The company’s sales were negatively impacted by COVID-19 testing-related sales decline and a manufacturing stoppage initiated in February of certain infant nutrition formula products manufactured at Abbott's Sturgis, MI, facility.
However, excluding these negative factors, total worldwide sales increased 6% on an organic basis, benefitting from robust sales growth across the company’s core Established Pharmaceuticals and Medical Devices segments.
Meanwhile, the Diabetes Care business continued to benefit from the growing sales of its flagship CGM system, FreeStyle Libre. The raised 2022 guidance buoys optimism.
(You can read the full research report on Abbott Laboratories here >>>)
Shares of Union Pacific have underperformed the Zacks Transportation - Rail industry over the past year (-10.5% vs. -5.2%). The company is facing escalation in fuel costs as oil prices move north is worrisome. This phenomenon induced a 22% rise in the operating expenses in the first nine months of 2022. Fuel costs surged 78% in the period. The same is likely to have been high in the December quarter as well. Detailed results will be out on Jan 24.
However, Union Pacific's efforts to reward its shareholders even in the current uncertain scenario please us. The company hiked dividend twice in 2021. In May 2022, UNP further upped its quarterly dividend by 10%. The railroad operator is also active on the buyback front.
Management expects share repurchases in 2022 to bearound $6.5 billion. UNP's strong free cash flow generating ability supports its shareholder-friendly activities. The uptick in overall volumes as labor woes ease is an added positive.
(You can read the full research report on Union Pacific here >>>)
Other noteworthy reports we are featuring today include The Goldman Sachs Group, Inc. (GS), Citigroup Inc. (C) and Intuitive Surgical, Inc. (ISRG).
Director of Research
Sheraz Mian
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 (PFE) Growth Drivers Beyond COVID Products a Concern
Abbott (ABT) Rides on Diabetes Business amid Forex Woes
Union Pacific's (UNP) Dividends Support, Fuel Costs Hurt
Featured Reports
Goldman (GS) Rides on Strong Consumer Banking Growth
Per the Zacks analyst, Goldman benefits from robust consumer banking business, robust client engagement, and a decent investment banking backlog.
Citigroup (C) Rides on Strong Institutional Clients Revenues
Per the Zacks analyst, Citigroup is benefiting from solid revenue performance from Institutional Clients. Its focus on institutional franchises and improve long-term profitability is positive.
Intuitive Surgical's (ISRG) da Vinci System Helps Offset Risks
Per the Zacks analyst, growing adoption of Intuitive Surgical's da Vinci system is driving its revenues as well as helping offsetting risks like COVID-19 resurgences and rising costs.
General Mills (GIS) Gains From Focus on Accelerate Strategy
Per the Zacks analyst, General Mills is gaining from its Accelerate strategy, as part of which it is competing efficiently via brand building, investing in saving initiatives and reshaping portfolio.
Rising Gold Prices to Aid Franco-Nevada (FNV), Costs Ail
Per the Zacks analyst, a debt-free balance sheet, the recent pickup in gold prices and cost management efforts will drive Franco-Nevada despite the impact of high costs.
Solid Demand For Live Events Aid Live Nation (LYV), Costs High
Per the Zacks analyst, Live Nation is likely to benefit from pent-up demand for live events, Ticketmaster systems and sponsorship business. However, inflationary pressures is a concern.
Low Breakeven Costs to Aid Marathon Oil's (MRO) Cash Flows
The Zacks analyst believes that Marathon's extremely low oil price breakeven costs of just $35 a barrel should generate meaningful free cash flows and improve future profitability.
New Upgrades
Investments, Clean Energy Initiatives to Bolster ConEd (ED)
Per the Zacks analyst, solid investments will aid Consolidated Edison's (ConEd) infrastructural development. Further, its initiatives to add more clean energy to its grid must benefit ConEd.
Capri Holdings' (CPRI) Digital Endeavors to Aid Top Line
Per the Zacks analyst Capri Holdings has been deploying resources to expand product offering and upgrade distribution infrastructure. This along with cost containment and focus on e-commerce bode well
Higher Rates, Loans, Buyout to Aid Washington Federal (WAFD)
Per the Zacks analyst, higher interest rates, steady loan demand, strategic acquisition of Luther Burbank, and a robust balance sheet and liquidity position will support Washington Federal's top line.
New Downgrades
High Debt Load & Stiff Competition to Hurt Generac (GNRC)
Per the Zacks analyst, Generac's performance is being affected by a leveraged balance sheet and supply chain constraints. Also, stiff competition a major concern.
Increased Cat Loss & Elevated Debt Level Hurt Allstate (ALL)
Per the Zacks analyst, exposure to catastrophic events continues to dent underwriting profitability. Rising debts remain a concern as it leads to escalated interest expenses.
Capital Market Volatility to Hamper Bank of America (BAC)
Per the Zacks analyst, Bank of America's over dependence on trading revenues for fee income is a woe. The volatile nature of the capital markets makes us apprehensive as it might hurt fee revenues.
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The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Citigroup Inc. (C) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Union Pacific Corporation (UNP) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
