Top Analyst Reports For Pfizer, TJX Companies & Honda
Zacks Investment Research | Aug 17, 2017 05:42AM ET
Thursday, August 17, 2017
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) (PFE), TJX Companies (NYSE:TJX) (TJX) and Honda (HMC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Pfizer shares have underperformed the peer group as well as the broader market over the past year (the stock is down -5.2% over the last year vs. a +1.7% increase for the Zacks Large-Cap Pharmaceuticals industry and the +12.5% gain for the S&P 500 index) on continued drug pricing uncertainty that have refused to go away even after the election.
Pfizer’s second-quarter results were mixed with earnings beating expectations even as sales came in lower than projected. The drugmaker continues to face headwinds in the form of genericization of key drugs, lost alliance revenues, pricing pressure and rising competition, which are hurting the top line.
But the Zacks analyst thinks that 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 that have blockbuster potential.
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Shares of TJX Companies have underperformed the Zacks Discount Stores industry over the last one month, gaining +2.3% vs. +3.8%. The company’s second-quarter results exceeded expectations, driven by improved traffic and margin improvements, as well as higher market share. The company also raised its fiscal 2018 earnings guidance.
The Zacks analyst likes the company’s brand enhancing initiative, aggressive store opening strategy and improving e-commerce business. However, the company is facing disappointing comps growth of late. The company is also facing margin pressure due to higher payroll and pension related costs. Currency headwinds are another concern.
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Strong Buy-rated Honda’s shares have lagged its auto peers over the last one year losing -7.5% vs. -5.1%. However, Honda reported better-than-expected earnings in the first quarter of fiscal 2018. Both earnings and revenues rose year over year too. The year-over-year increase can be attributed to higher revenues in financial services, motorcycle business operations and foreign currency conversion effects. Also, record-high production in the first-half of calendar year 2017 outside Japan is aiding Honda.
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Moreover, the company has been focusing on infrastructural development, new product introductions and car launches in Asia, North and South America. Honda has also planned to launch fuel cell vehicles in U.S. and European markets. These efforts are expected to popularize the company and attract more customers, which in turn will boost the revenue figure. It is also undertaking frequent collaborations in order to expand its business.
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Other noteworthy reports we are featuring today include American Electric (AEP), Pioneer Natural Resources (PXD) and Novo Nordisk (CO:NOVOb) (NVO).
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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
Today's Must Read/h6
Featured Reports/h6
The Zacks analyst expects Essex Property to gain from strong property base and ample liquidity.
While Albemarle faces headwinds from higher operational costs, it should gain from expansion actions in its lithium unit and strong growth in the battery-grade lithium market, per the Zacks analyst.
The Zacks analyst is concerned about the softness in the Ad market, which is hurting the top line. The decision to buy Scripps, however, is a positive.
The Zacks analyst believes strong production from Anadarko's international assets and from high quality assets in Delaware, DJ Basin and Deepwater Gulf of Mexico to drive its performance.
Per the Zacks analyst, American Electric's ongoing investments in transmission projects and businesses bode well for its earnings in the future.
Per the Zacks analyst, strong focus on the low-cost and lucrative Permian Basin will help Pioneer Natural combat the rise in exploration expenses.
Per the Zacks analyst, Novo Nordisk has a strong presence in the Diabetes Care market and has a strong pipeline.
The Zacks analyst expects Essex Property to gain from strong property base and ample liquidity.
While Albemarle faces headwinds from higher operational costs, it should gain from expansion actions in its lithium unit and strong growth in the battery-grade lithium market, per the Zacks analyst.
The Zacks analyst is concerned about the softness in the Ad market, which is hurting the top line. The decision to buy Scripps, however, is a positive.
The Zacks analyst believes strong production from Anadarko's international assets and from high quality assets in Delaware, DJ Basin and Deepwater Gulf of Mexico to drive its performance.
Per the Zacks analyst, American Electric's ongoing investments in transmission projects and businesses bode well for its earnings in the future.
Per the Zacks analyst, strong focus on the low-cost and lucrative Permian Basin will help Pioneer Natural combat the rise in exploration expenses.
Per the Zacks analyst, Novo Nordisk has a strong presence in the Diabetes Care market and has a strong pipeline.
New Upgrades/h6
Per the Zacks analyst, Unum Group (NYSE:UNM) will benefit from solid persistency levels in core business lines and sturdy volume of sales, along with solid benefits experience.
Per the Zacks analyst, V.F. Corp's 2021 strategy focuses on rapidly responding to the changing marketplace while targeting solid shareholder returns. It expects 5-year revenue CAGR of 4-6% by 2021.
The Zacks Analyst believes that enhancing its lease portfolio will accelerate St. Joe's growth momentum and provide a cushion to volatility of earnings from other segments.
Per the Zacks analyst, Unum Group (NYSE:UNM) will benefit from solid persistency levels in core business lines and sturdy volume of sales, along with solid benefits experience.
Per the Zacks analyst, V.F. Corp's 2021 strategy focuses on rapidly responding to the changing marketplace while targeting solid shareholder returns. It expects 5-year revenue CAGR of 4-6% by 2021.
The Zacks Analyst believes that enhancing its lease portfolio will accelerate St. Joe's growth momentum and provide a cushion to volatility of earnings from other segments.
New Downgrades/h6
Per the Zacks analyst, Mylan's generic business is under tremendous pressure due to increased competition for its existing generic drugs and continued consolidation of the customer base in the U.S.
The Zacks analyst believes that high capital expenditure required for ambitious growth projects like the U.S. L3R Program will reduce cash distribution growth.
Per the Zacks analyst, mounting competition in the digital space and escalating cost of investments will continue to weigh on Nielsen's margins and profitability.
Per the Zacks analyst, Mylan's generic business is under tremendous pressure due to increased competition for its existing generic drugs and continued consolidation of the customer base in the U.S.
The Zacks analyst believes that high capital expenditure required for ambitious growth projects like the U.S. L3R Program will reduce cash distribution growth.
Per the Zacks analyst, mounting competition in the digital space and escalating cost of investments will continue to weigh on Nielsen's margins and profitability.
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