Friday, June 17, 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), Booking Holdings Inc. (BKNG), and Dominion Energy, Inc. (D). 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 >>>
Pfizer
shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+27.6% vs. +14.0%), reflecting the company’s diversified portfolio of innovative drugs and vaccines including Ibrance and Prevnar. The Zacks analyst believes that no company is as strongly placed in the COVID vaccines/treatment market as Pfizer right now. Its COVID-19 vaccine has become a key contributor to the top line.
The vaccine together with Pfizer’s promising 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.
However, currency headwinds and pricing pressure are key top-line headwinds. Concerns remain about long-term growth drivers beyond its COVID-related products due to competitive pressure.
(You can
read the full research report on Pfizer here >>>
)
Booking
shares have declined -15.6% over the past year against the Zacks Internet – Commerce industry’s decline of -48.7% on the back of steady improvement in booking trends. That said, the Zacks analyst sees uncertainties related to the economic outlook and ongoing coronavirus pandemic as still a headwind.
Additionally, the company is experiencing solid momentum in international regions, which is a positive. Also, strong growth in rental car, airline ticket units and booked room nights is another positive. This apart, solid momentum across the agency, merchant, and advertising and other businesses is contributing well. The ongoing vaccination drive and lifting up of travel restrictions in many parts of the world remain major tailwinds. Further, strengthening alternative accommodation business and flight capabilities are major positives.
(You can
read the full research report on Booking here >>>
)
Dominion Energy
shares have modestly outperformed the Zacks Utility – Electric Power industry over the past year (+1.9% vs. +1.6%). The company’s planned investment will strengthen the electric and natural gas infrastructure, and ensure consistent high-quality services for customers. Contribution from organic as well as inorganic assets will boost its earnings. The divestiture of Gas Transmission & Storage operations will increase Dominion Energy’s focus on regulated operations. New clean energy projects will help it achieve carbon neutrality by 2050. The company has enough liquidity to meet obligations. In the past six months, Dominion’s shares have outperformed the industry.
However, Dominion Energy’s decision to discontinue the Atlantic Coast Pipeline after investing billions of dollars will impact long-term prospects. Risks of operating nuclear power plants and any failure by third-party producers to supply gas could impact profitability.
(You can
read the full research report on Dominion Energy here >>>
)
Other noteworthy reports we are featuring today include TotalEnergies SE (TTE), Marriott International, Inc. (MAR) and Nutrien Ltd. (NTR).
Sheraz Mian
Director of Research
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
Booking Holdings (BKNG) Banks on Improving Customer Bookings
Investment on Infrastructure & Clean Assets Aid Dominion (D)
Featured Reports
Inorganic Growth Moves Aid UBS Amid Prevailing Costs Woes
Per Zacks analyst, strong capital position and opportunistic expansions are likely to aid UBS’ financials. However, escalating costs are a threat to the profitability.
Marriott (MAR) Likely to Gain From Robust Expansion Efforts
The Zacks analyst believes that Marriott’s efforts to expand its footprint and improving demand bode well. At the end of first-quarter 2022, Marriott’s development pipeline totaled nearly 2,878 hotels
Ecolab (ECL) Continues to Gain From Cost Efficiency Program
The Zacks analyst is upbeat about Ecolab’s cost efficiency program which will likely deliver continued strong sales gains despite its operation in a stiff competitive space.
Travelers’ (TRV) Auto & Homeowners Aids, Cat Loss Ails
Per the Zacks analyst, persistent progress and strong market of the auto and homeowners businesses have driven revenues of the company. However, exposure to cat loss induces earnings volatility.
Cheniere (LNG) to Gain from Sustained Gas Export Strength
The Zacks analyst believes that being one of the few liquefied natural gas exporters of the U.S., Cheniere Energy is set to capitalize on the sustained strength in shipments to Europe and Asia.n
Gartner (IT) Benefits From High-Quality Analysis Offering
The Zacks analyst believes that Gartner’s high-quality, timely, thought-provoking and comprehensive analysis offering helps it to counter growing competition.
Sensata (ST) Benefits from Product Portfolio & Acquisitions
Per Zacks analyst, Sensata’s performance is gaining from strength in product portfolio. Strategic acquisitions and growth across the heavy vehicle and industrial markets are major tailwinds.
New Upgrades
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Per the Zacks analyst TotalEnergies’s presence in entire LNG value chain and expansion of clean energy generation through joint venture and acquisition will boost its performance.
Nutrien (NTR) Gains on Strong Demand and Higher Prices
Per the Zacks analyst, the company will gain from solid demand for fertilizers driven by the strength in global agriculture markets. Higher prices for crop nutrients will also support its margins.
Investments in E-Commerce & Cost Control Aid Grainger (GWW)
Per the Zacks Analyst, Grainger will benefit from investments in e-commerce and digital capabilities, focus on strengthening customer base in the United States and cost control actions.
New Downgrades
Stiff Competition for Tepezza Weighs Heavily on Horizon (HZNP)
Per the Zacks analyst, Horizon’s portfolio of marketed drugs faces intense competition from other healthcare companies. Also, the recent regulatory setback for Tepezza do not bode well for the company
Supply Constraints to Hurt Hewlett Packard’s (HPE) Prospects
Per the Zacks analyst, despite strong demand for its technology solutions, Hewlett Packard Enterprise might not be able to fully capitalize on opportunity due to supply-chain constraints.
Higher Freight Costs Hurt Abercrombie’s (ANF) Gross Margins
Per the Zacks analyst, the volatile supply environment and higher freight costs have been weighing on Abercrombie’s gross margin. It expects higher costs to be a headwind throughout fiscal 2022.
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