Top Stock Reports For Walmart, Pfizer & Charter Communications
Zacks Investment Research | Mar 05, 2020 02:56AM ET
Thursday, March 5, 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 Walmart (NYSE:WMT) (WMT), Pfizer (PFE) and Charter Communications (NASDAQ:CHTR) (CHTR). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Walmart’s shares have underperformed the Zacks Supermarkets industry over the past six months (+1.8% vs. +2.6%). The Zacks analyst believes that the company’s focus on strengthening e-commerce and store operations has helped it retain its sturdy comps trend in fourth-quarter fiscal 2019, wherein U.S. comps rose for the 22nd straight time.
Further, e-commerce sales surged on robust online grocery performance. Management expects e-commerce sales to rise nearly 30% in fiscal 2021, wherein International sales are likely to grow 4%.
However, Walmart’s earnings broke its positive surprise trend and fell year over year in the quarter due to higher cost of sales and increased operating, selling, general and administrative expenses. Additionally, disruption in Chile and a legal matter affected the bottom line. Further, the gross margin remained soft due to pricing and growing e-commerce mix.
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Shares of Pfizer have lost -13.1% over the past year against the Zacks Large-Cap Pharmaceuticals industry’s rise of +5.5%. The Zacks analyst believes that the Consumer Healthcare joint venture with Glaxo, the Array acquisition and the pending merger of Upjohn unit with Mylan (NASDAQ:MYL), if successful, will make Pfizer a smaller company with a diversified portfolio of innovative drugs and vaccines.
The smaller Pfizer should see better revenue growth as the Lyrica LOE cliff will go away. Pfizer expects continued strong growth of key brands like Ibrance, Inlyta and Eliquis to drive sales in 2020. Pfizer also has a strong portfolio of new drugs, which will accelerate growth in 2020 and beyond. However, Lyrica generic erosion, currency headwinds and pricing pressure are the key near-term top-line headwinds.
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Charter Communications’ shares have gained +11.7% over the past three months against the Zacks Cable TV industry’s rise of +0.6%. The Zacks analyst believes that the company is benefiting from growth in Internet, mobile, commercial and video revenues.
Increase in Internet speed at no extra cost is also aiding subscriber growth. Additionally, Charter’s spectrum mobile products are gaining traction and subscriber base is increasing rapidly. Launch of spectrum mobile services to small and medium business customers is a key catalyst. Improving free cash flow is a growth driver.
However, commercial revenues continued to suffer due to migration of customers to Spectrum pricing, and packaging from Legacy TWC and Legacy Bright House. Further, Charter persistently loses video subscribers, primarily due to cord-cutting and intense competition from streaming service providers like Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN).
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Other noteworthy reports we are featuring today include Eli Lilly (LLY), Lockheed Martin (LMT) and CME Group (CME).
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Today's Must Read/h6
Featured Reports/h6
The Zacks analyst points out that several late-stage data readouts are scheduled for 2020 for Lilly. It is also regularly adding promising new pipeline assets.
Per the Zacks Analyst, Lockheed Martin witnesses strong demand for its aircraft programs and missile defense systems.
Per the Zacks analyst, the company is well poised for growth with the expansion of futures products in emerging markets and OTC offerings.
Per the Zacks analyst, Intuit is gaining from solid adoption of TurboTax Live offering, and its lending product - QuickBooks Capital.
Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of buyouts and cost synergies.
Kimberly-Clark expects cost savings of $425-$500 million in 2020, from its FORCE Program and 2018 Global Restructuring Program.
Per the Zacks analyst, buyouts like Livermore Software Technology (LSTC) and Dynardo are enabling ANSYS to bring innovative solutions to the market & fortify foothold in the simulations market.
The Zacks analyst points out that several late-stage data readouts are scheduled for 2020 for Lilly. It is also regularly adding promising new pipeline assets.
Per the Zacks Analyst, Lockheed Martin witnesses strong demand for its aircraft programs and missile defense systems.
Per the Zacks analyst, the company is well poised for growth with the expansion of futures products in emerging markets and OTC offerings.
Per the Zacks analyst, Intuit is gaining from solid adoption of TurboTax Live offering, and its lending product - QuickBooks Capital.
Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of buyouts and cost synergies.
Kimberly-Clark expects cost savings of $425-$500 million in 2020, from its FORCE Program and 2018 Global Restructuring Program.
Per the Zacks analyst, buyouts like Livermore Software Technology (LSTC) and Dynardo are enabling ANSYS to bring innovative solutions to the market & fortify foothold in the simulations market.
New Upgrades/h6
Per the Zacks analyst, label expansions of key drugs like Eylea and Dupixent boost Regeneron. The company's efforts to expand the label of these drugs and develop its pipeline are impressive too.
Per the Zacks analyst, Cracker Barrel continues to benefit from robust comparable store restaurant sales, enhanced marketing efforts, seasonal promotions as well as unit expansions.
Per the Zacks analyst, Sunoco's fuel distribution and terminalling businesses are expected to bring higher profits on the back of higher demand in the domestic market.
Per the Zacks analyst, label expansions of key drugs like Eylea and Dupixent boost Regeneron. The company's efforts to expand the label of these drugs and develop its pipeline are impressive too.
Per the Zacks analyst, Cracker Barrel continues to benefit from robust comparable store restaurant sales, enhanced marketing efforts, seasonal promotions as well as unit expansions.
Per the Zacks analyst, Sunoco's fuel distribution and terminalling businesses are expected to bring higher profits on the back of higher demand in the domestic market.
New Downgrades/h6
Declining demand for petroleum products continues to hurt Sinopec's refining business. Lower contributions from the firm's chemicals operations also concern the Zacks analyst.
Per the Zacks analyst, heavy spending on hybrid cloud and SaaS portfolios amid intensifying competition hurts VMware's profitability.
Per the Zacks Analyst, declining Weibo & portal advertising revenues is hurting SINA's top-line growth. Moreover, intensifying competition is a concern.
Declining demand for petroleum products continues to hurt Sinopec's refining business. Lower contributions from the firm's chemicals operations also concern the Zacks analyst.
Per the Zacks analyst, heavy spending on hybrid cloud and SaaS portfolios amid intensifying competition hurts VMware's profitability.
Per the Zacks Analyst, declining Weibo & portal advertising revenues is hurting SINA's top-line growth. Moreover, intensifying competition is a concern.
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