Monday, April 13, 2020
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 Alibaba Group (BABA), Pfizer (PFE) and S&P Global (SPGI). 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 >>>
Alibaba’s shares have outperformed the Zacks Internet Commerce industry over the past six months (+14.7% vs. +11.9%). The Zacks analyst believes that Alibaba continues to benefit from strong growth in metrics.
Further, Alibaba’s strengthening cloud business with its expanding customer base continues to drive its performance. Its New Retail strategy is also gaining momentum. This is aiding growth in Tmall Import, Hema fresh food grocery business and Intime Department Stores. However, higher costs associated with new initiatives remain a major concern.
Also, uncertain economy and macro headwinds in China are major concerns. In addition, rising competition from e-commerce players poses a risk. However, the steady improvement in core commerce and strong cloud business remain positives.
(You can read the full research report on Alibaba here >>>)
Shares of Pfizer have lost 15.9% over the past year against the Zacks Large-Cap Pharmaceuticals industry’s rise of +3.6%. The Zacks analyst believes that the Consumer Healthcare joint venture with Glaxo, the Array acquisition and the pending merger of the Upjohn unit with Mylan, if successful, will make Pfizer a smaller company which should see better revenue growth as the Lyrica LOE cliff will go away.
The company expects continued strong growth of key brands like Ibrance, Inlyta and Eliquis to drive sales in 2020. It has a strong portfolio of new drugs, which will accelerate growth in 2020 and beyond.
However, Lyrica generic erosion, currency headwinds, pricing pressure and uncertainty surrounding the coronavirus pandemic are near-term top-line headwinds. Estimates have declined slightly ahead of Q1 earnings. Pfizer has a positive record of earnings surprises in the recent quarters.
(You can read the full research report on Pfizer here >>>)
S&P Global’s shares have lost 2.3% over the past three months against the Zacks Business Information Services industry’s fall of -9.8%. The Zacks analyst believes that the company remains well poised to gain from growing demand for business information services. Buyouts have helped it innovate, increase differentiated content and develop new products.
The outperformance partly reflects better-than-expected earnings and revenue performance in the last three quarters. Effective management execution has helped it generate solid cash flow which is utilized for growth initiatives.
Dividend payments and share buybacks boost investors’ confidence and positively impact earnings per share. On the flip side, S&P Global remains vulnerable to proceedings, investigations and inquiries with respect to the ratings provided, leading to legal charges, damages or fines. Lower bank loan ratings activity has been weighing on the company’s revenues.
(You can read the full research report on S&P Global here >>>)
Other noteworthy reports we are featuring today include SAP SE (SAP), Novo Nordisk (NVO) and Duke Energy (DUK).
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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
Alibaba (BABA) Drives On Cloud Growth; Investments Hurt
Pfizer’s (PFE) Business Reorganization Can Aid Sales Growth
S&P Global (SPGI) Benefits From Buyouts Amid Weak Issuance
Featured Reports
SAP Rides on Cloud Initiatives & Growth in S/4HANA Platform
Per the Zacks analyst, SAP’s resilient Cloud and Software business, act as staple growth drivers.
Strong Diabetes Portfolio Boost Novo (NVO) Amid Competition
Per the Zacks analyst, Novo Nordisk’s strong and broad diabetes portfolio drives growth for the company.
Steady Investments Aid Duke Energy (DUK), Debt Loads Woe
Per the Zacks analyst, steady investments in infrastructure and expansion projects are expected to boost Duke Energy’s earnings growth.
Rising Demand aids Northrop (NOC), Stiff Competition hurts
Per the Zacks Analyst, Northrop enjoys solid order inflows from overseas courtesy of its combat-proven defense products. However, it faces stiff market competition due to peer price pressure.
Biogen’s (BIIB) Key Drugs Drive Sales Amid Stiff Competition
While Biogen’s multiple sclerosis (MS) drug Tecfidera and spinal muscular atrophy (SMA) drug Spinraza are driving sales, competitive pressure is expected to rise in 2020 in both MS and SMA markets.
TC Energy’s (TRP) C$30B Growth Projects to Boost Earnings
The Zacks analyst believes that TC Energy’s C$30 billion of growth projects should support its earnings and dividend payouts. However, long-term debt of more than C$34.2 billion is a concern.
Growing Premiums Aid Prudential (PRU), Elevated Costs Hurt
Per the Zacks Analyst, its rising premiums on expanded product offerings and strength in retirement business have led to top-line growth. However, elevated expenses continue to weigh on margins.
New Upgrades
Strategic Education (STRA) Benefits From Strong Enrollments
Per the Zacks analyst, Strategic Education’s strong enrollment growth and revenue-per-student/learner are benefiting the business.
Product Launches as Well as Osprey Buyout Aid Phibro (PAHC)
The Zacks analyst is optimistic about Phibro’s buyout of Osprey, which has already started to strongly contribute to the top line. Product launches, increased adoptions of products drive segmental gro
Acquisitions, PropStream Service to Aid Hi-Crush (HCR)
Per the Zacks analyst, Hi-Crush should gain from acquisitions and continuous expansion actions. Also, its PropStream integrated logistics service is providing cost savings and boosting efficiency.
New Downgrades
Bleak Air-Travel Demand Dampens Delta’s (DAL) Prospects
The Zacks analyst is concerned about the coronavirus-induced weak air-travel demand, which is hurting Delta’s passenger revenues. Passenger revenues form the major part of Delta’s top line.
Coronavirus Woes and High Competition to Ail Penske (PAG)
Per the Zacks Analyst, weak consumer sentiment amid coronavirus is likely to hurt Penske’s sales. Additionally, rising competition may also lead to lower selling prices, thus affecting the profits.
Weakness in Industrial Segment Restricts Barnes Group (B)
Per the Zacks analyst, Barnes Group is struggling with the poor performance of the Industrial segment on account of the weak automotive end-market. Also, high operating costs remain concerns.
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S&P Global Inc. (SPGI) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
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