Top Research Reports for Pfizer, Caterpillar & Charter Communications

Wednesday, October 17, 2018

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Pfizer (PFE), Caterpillar (CAT) and Charter Communications (CHTR). 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’s shares have outperformed its peer group year-to-date (the stock is up +19% over this period vs. a +3.2% increase for the Zacks Large-Cap Pharmaceuticals industry). Pfizer is facing top-line headwinds in the form of genericization of key drugs, supply challenges in the legacy Hospira portfolio, pricing pressure and rising competition.

Nevertheless, the Zacks analyst thinks new products like Ibrance, contribution from acquisitions, cost-cutting efforts, a lower tax rate and share buybacks should help the company achieve its guidance. Pfizer also boasts a strong pipeline and expects approximately 25 to 30 drug approvals through 2022, including around 15 products that have blockbuster potential.

Pfizer’s growing immuno-oncology portfolio has strong potential.  Bavencio is being considered a key long-term growth driver for Pfizer. In oncology, Pfizer has three potential medicines under FDA’s priority review. Estimates have remained stable ahead of its Q3 earnings release and Pfizer has a positive record of earnings surprises in recent quarters.

(You can read the full research report on Pfizer here >>>).

Shares of Strong Buy-ranked Caterpillar have outperformed the Zacks Construction and Mining industry over the past year, gaining +8.6% vs. +7.7%. Backed by strong order rates, increasing backlog, Caterpillar guides adjusted EPS at $11.00-$12.00 for 2018, reflecting year-over-year growth of 67% at the mid-point.

The Zacks analyst thinks Construction is likely to benefit from infrastructure development in China and continued improvement in North American residential, non-residential and infrastructure markets. Rising commodity prices and improved miners' profitability is likely to drive revenues for the Resource Industries segment.

Cost-cutting efforts and additional investments in expanded offerings and services, digital initiatives like e-commerce will also drive growth. Its estimates have also gone up lately. Further, the company has a positive record of earnings surprises over the past few quarters.

(You can read the full research report on Caterpillar here >>>).

Charter Communications’ shares have outperformed the Zacks Cable TV industry year to date (-6.6% vs. -13.7%). The Zacks analyst thinks Charter is benefiting from subscriber growth in residential and commercial internet and voice segment. The partnership with Comcast to develop back-end software to support services for Xfinity mobile offering is a major positive. The collaboration will help in saving costs.

Moreover, the launch of Spectrum Mobile service under mobile virtual network operator (MVNO) reseller agreement with Verizon is another positive for the company. Meanwhile, estimates have been stable lately ahead of the company’s Q3 earnings release.

The company has a mixed record of earnings surprises in recent quarters. Charter continues to struggle due to a saturated and competitive multi-channel U.S. video market. The company is also facing stiff competition from online TV streaming service providers that is hurting top-line growth.

(You can read the full research report on Charter Communications here >>>).

Other noteworthy reports we are featuring today include Zoetis (ZTS), Sherwin-Williams (SHW) and Pioneer Natural Resources (PXD).

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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

Pfizer's (PFE) New Products Drive Revenue Amid Competition

Caterpillar (CAT) Rides on Buoyant Global Demand, Cost Cuts

Subscriber Gains, Wireless Initiatives Benefit Charter (CHTR)

Featured Reports

Companion Animal Business & Acquisitions Boost Zoetis (ZTS)

Per the Zacks analyst, Zoetis' strong companion animal business on the back of Apoquel and Simparica should boost sales further.

Valspar Buyout, Expansion Moves Aid Sherwin-Williams (SHW)

The Zacks analyst thinks Sherwin-Williams should benefit from synergies of the Valspar acquisition and its focus on growth through expansion of retail operations at its core Americas Group segment.

Pioneer Natural (PXD) to Gain from Oil-Rich Permian Acreage

Strong focus on the low-cost and lucrative Permian Basin will help Pioneer Natural generate significant cash flow, according to the Zacks analyst.

Genpact (G) Rides on Acquisitions Amid Client Concentration

Per the Zacks analyst, acquisitions have helped Genpact expand its portfolio and gain new domain expertise.

Rising Oil Output, High Margin Assets Aid Devon (DVN)

The Zacks analyst believes Devon's high oil production from Delaware and STACK assets and focus on high margin assets will continue to boost its performance.

New Upgrades

Acquisitions, Free Cash Flow Aid Genesee & Wyoming (GWR)

The Zacks analyst likes the company's growth-by-acquisition policy. Impressive free cash flow generation is also a positive.

Higher Rates, Loan Growth Aid Hancock Whitney (HWC) Revenues

Per the Zacks analyst, Hancock Whitney is poised for revenue growth, supported by the rise in loan balances along with higher interest rates. Also, its inorganic growth efforts look impressive.

New Downgrades

Rising Material & Labor Costs Mar PulteGroup's (PHM) Prospects

Rising raw material costs as well as labor costs may dampen PulteGroup's growth prospects. Again, high mortgage rates may dilute the demand for new homes, per the Zacks analyst.

Growing Rivalry May Hurt Align's (ALGN) Worldwide Invisalign Sales

The Zacks analyst is worried that ongoing entry of new players may dent Align Technology's strong Invisalign sales in North America and internationally, particularly the Asia-Pacific region.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Zoetis Inc. (ZTS) : Free Stock Analysis Report
 
The Sherwin-Williams Company (SHW) : Free Stock Analysis Report
 
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
 
Pfizer Inc. (PFE) : Free Stock Analysis Report
 
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
 
Caterpillar Inc. (CAT) : Free Stock Analysis Report
 
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