Tuesday, November 15, 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 Pfizer Inc. (PFE), The Goldman Sachs Group, Inc. (GS) and General Electric Co. (GE). 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 (-0.7% vs. +10.3%). The company is facing currency flactuation and pricing pressure which are key top-line headwinds. Concerns remain about its long-term growth drivers beyond its COVID-related products due to competitive pressure.
However, there is no company as strongly placed in the COVID vaccines/treatment market as Pfizer right now. Its COVID-19 vaccine together with the oral antiviral pill for COVID-19, 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.
Nevertheless, according to the Zacks analyst estimate 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 >>>)
Goldman Sachs’ shares have declined -5.2% over the past year against the Zacks Financial – Investment Bank industry’s decline of -10.7%. The company’s a decline in equities revenues is likely to hurt the Global Market segment. A rise in the expense base will hinder the bottom line. Also, legal hassles and higher dependence on overseas revenues are woes.
However, Goldman Sachs has a decent earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed in the other one. The company continues to expand organically and bolster its digital consumer banking platform.
Other than business diversification, robust client engagement, a solid position in announced and completed mergers and acquisitions (M&As), and a decent investment banking (IB) backlog are likely to aid in navigating weaker markets. Also, its robust liquidity position will help sustain capital deployments.
(You can read the full research report on Goldman Sachs here >>>)
General Electric’ shares have declined -17.0% over the past year against the Zacks Diversified Operations industry’s decline of -18.2%. The company supply chain disruptions, including labor and material shortages and high logistics costs are weighing on the company’s performance. Weakness in the Power and Renewable energy segment due to lower volumes is concerning.
Foreign currency headwinds are hurting the company’s top line. The company’s strong performance of the Aerospace and Healthcare segments is driving General Electric’s growth. Its investments in productivity and innovation should fuel growth going forward.
Cost-control measures and pricing actions are aiding its bottom line. The company’s measures to reward its shareholders are encouraging. In the first nine months of 2022, General Electric paid dividends of $455 million to shareholders and repurchased shares worth $0.6 billion.
(You can read the full research report on General Electric here >>>)
Other noteworthy reports we are featuring today include Truist Financial Corp. (TFC), Microchip Technology Inc. (MCHP), and Genuine Parts Co. (GPC).
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) 2022 Sales to Ride on COVID Vaccine & Pill
Business Diversification Aids Goldman (GS) Amid Cost Woes
Aerospace Backs General Electric (GE), Renewable Energy Ails
Higher Rates, Loan Demand Aid Truist (TFC), High Costs a Woe
Per the Zacks analyst, loan demand, higher interest rates and Truist Financial’s efforts to improve fee income will aid financials. Yet, rising costs and challenging operating backdrop are headwinds.
Robust Product Portfolio & Bookings Aids Microchip (MCHP)
Per the Zacks analyst, Microchip’s expanding product portfolio, solid demand for microcontrollers and bookings growth across industrial, data center, and automotive end markets are key catalysts.
Genuine Parts (GPC) to Gain From KDG Buyout Amid Cost Woes
While KDG acquisition will drive Genuine Parts industrial unit’s revenues, the Zacks analyst is worried about commodity inflation and high operating costs, which may dent the firm’s margins.
Investments Aid Ameren (AEE), High Emission Expenses Woe
Per the Zacks analyst, systematic investment in infrastructure project boosts Ameren’s growth. Yet the stock bears high expenditure to comply with air emission regulations that may hurt its results.
Air-Travel Demand Aids United Airlines (UAL), Fuel Costs Ail
Upbeat air-travel demand is driving United Airlines’ top line. The Zacks analyst is, however, worried about escalated fuel costs that are limiting bottom-line growth.
Solid Membership Levels Aid Planet Fitness (PLNT), Cost High
Per the Zacks analyst, Planet Fitness is benefitting from solid membership growth buoyed by marketing and promotional offerings. However, supply chain issues and inflationary pressures are concerns.
Strength in HSA Aids HealthEquity (HQY) Amid Rising Costs
The Zacks analyst is upbeat about HealthEquity’s continued solid growth in Health Savings Accounts or HSAs despite escalation in its operating costs.
W.R. Berkley (WRB) Set to Grow on Solid Insurance Business
Per the Zacks analyst, W.R. Berkley’s Insurance business is set to grow on rate increases, reserving discipline, and improving premiums from international unit supported by the emerging markets.
Solid Demand Continues to Aid Dillard’s (DDS) Performance
Per the Zacks analyst, Dillard’s has been witnessing continued momentum in demand for cosmetics, men’s apparel and accessories, home and furniture, and shoes. This led to Q3 sales growth of 4.3%.
Helmerich & Payne (HP) to Gain from Proprietary FlexRigs
The Zacks analyst believes that Helmerich & Payne’s technologically-advanced FlexRigs help it to consolidate activity levels and maintain strong rig margins.
Macroeconomic Pressures to Hurt Perrigo’s (PRGO) 2022 Sales
Though Perrigo’s (PRGO) has initiated several initiatives to lower its costs and improve margins, sales continue to be hurt due to macroeconomic pressures like currency headwinds and inflation.
Viasat (VSAT) Plagued by High R&D Costs, Demand Seasonality
Per the Zacks analyst, Viasat is likely to incur huge research and development costs related to ViaSat-3 satellite launch, materially impacting margins amid stiff competition and demand seasonality.
Sally Beauty (SBH) Remains Troubled by Higher SG&A Costs
Per the Zacks analyst, Sally Beauty has been seeing higher SG&A expenses for a while. In fourth-quarter fiscal 2022, SG&A expenses increased $11.3 million due to cost pressures from labor.
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The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
General Electric Company (GE) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Genuine Parts Company (GPC) : Free Stock Analysis Report
Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
Truist Financial Corporation (TFC) : Free Stock Analysis Report
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