Top Analyst Reports for Pfizer, BHP Billiton & Facebook

Tuesday, July 3, 2018

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 (PFE), BHP Billiton (BHP) and Facebook (FB). 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 >>>

Buy-ranked Pfizer’s shares have outperformed the peer group year-to-date (the stock is up +0.3% over this period vs. a -5.1% decline for the Zacks Large-Cap Pharmaceuticals industry). Pfizer has been working on strengthening its product portfolio through acquisitions and licensing deals. However, Pfizer is facing headwinds in the form of genericization of key drugs, supply challenges in the legacy Hospira portfolio, pricing pressure and rising competition, which are hurting the top line.

Nonetheless, the Zacks analyst believes that 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 offers a strong potential. Bavencio is being considered a key long-term growth driver for Pfizer.

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

Shares of buy-rated BHP Billiton’s shares have outperformed the Zacks Mining-Miscellaneous industry over the past year (+34.2% vs. +23.1%). BHP Billiton is gaining competency on the back of sturdier productivity and remains on track to deleverage balance sheet over time. BHP Billiton expects capital and exploration costs to be lower than $8 billion by fiscal 2020-end. It is making its operations more efficient on the back of smarter technology adoption across the entire value chain.

BHP Billiton expects to secure productivity gains of $2 billion by fiscal 2019-end. The company's board recently approved a capital investment of $2.9 billion in the South Flank project in central Pilbara, Western Australia, adding a major project to its portfolio.

BHP Billiton remains focused on providing increased returns to shareholders. Also, the Zacks Consensus Estimate for the stock have been revised upward for both fiscal 2018 and fiscal 2019, over the last 30 days.

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

Buy-ranked Facebook’s shares have outperformed the S&P 500 index so far this year, gaining +11.9% vs. +2.3%. Facebook is benefitting from robust growth in advertising and user base. Facebook’s user base of 2.2 billion coupled with Instagram’s 1 billion users provides a huge canvas for advertisers, which, in turn, is driving the top line of the company. Rising mobile conversions on the platform is boosting mobile ad growth.

Growing popularity of Stories across all its major platforms, with Instagram taking center stage, is a tailwind. Apart from mobile and video, the monetization opportunities of Messenger, WhatsApp and Oculus and a huge user base are expected to drive growth going ahead. Facebook has a strong balance sheet and generates significant cash flow, which makes it an attractive stock for investors.

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

Other noteworthy reports we are featuring today include Tesla (TSLA), Emerson Electric (EMR) and Humana (HUM).

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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 Drugs, Cost Cuts & Low Tax to Aid Profits

BHP Billiton (BHP) Bets on Operational Efficiency, Liquidity

Facebook's (FB) Instagram Stories Drives User & Ad Growth

Featured Reports

Acquisitions, Strong Medicare Business Aids Humana (HUM)

Per the Zacks analyst the purchase of Family Physicians Group, Your Home Advantage and a share in Kindred at Home should aid long term growth.

Weak Dollar & Higher Vehicle Tariffs to Hurt Tesla (TSLA)

Per the Zacks analyst, a weak dollar and higher tariffs for vehicles imported in China and components procured from the country might hurt Tesla's financials.

Meritage Homes' (MTH) Focus on Entry-Level Buyers Bodes Well

The Zacks analyst stresses, Meritage Homes' strategic shift to a pure-play entry-level and first-move-up builder is expected to yield higher absorptions.

Aimco (AIV) to Gain From Portfolio Revamp, Supply Woes Stay

The Zacks Analyst is optimistic on the portfolio revamp moves of Apartment Investment & Management Co., better known as Aimco, and large coalition support in case against Airbnb.

Buyouts to Fuel Hormel Foods (HRL), High Beef Costs a Worry

Per the Zacks analyst, Hormel Foods' performance will continue gaining from the Fontanini and Columbus Manufacturing buyouts.

Lease Fleet Growth & Buyouts Aid Ryder (R) Amid Debt Woes

The Zacks analyst likes the growth in Ryder's lease fleet. Efforts to strengthen its portfolio through acquisitions are encouraging as well.

Boyd Gaming (BYD) Banks on Acquisitions to Boost Growth

Per the Zacks analysts, Boyd Gaming which has entered into an agreement with Valley Forge Convention Center Partners to acquire the latter's Resort in King of Prussia will continue to drive growth.

New Upgrades

Emerson (EMR) Gains on High Infrastructure Outlay & Buyouts

Per the Zacks Analyst, rise in global infrastructure spending, sound restructuring moves and acquisition of businesses like Aventics will strengthen Emerson's near-term results.

Solid International Prospects to Boost PRA Health (PRAH)

In Asia, PRA Health has been honored as the best CRO recently. The Zacks analyst is also upbeat about the company's global clinical establishments across North America, Europe and the Middle East

CACI to Gain From Higher Budgetary Spending

Higher spending, as proposed in the latest two-year Bipartisan Budget Agreement, is anticipated to accelerate contract awards. The Zacks analyst believes that this will aid CACI's top line.

New Downgrades

Adverse Regulations, Costs hurt Edison International (EIX)

Per Zacks Analyst, adverse regulatory decisions for 2018 GRC application may impact financial performance. Also, inability to recover uninsured wildfire-related costs may affect financial condition.

Murphy USA (MUSA) Hurt by Soft Same-Store Sales

The Zacks analyst believes that the difficult retail fuel margin environment will continue to hamper Murphy USA's same-store sales volume.

Harris (HRS) Remains Weighed Down by Perennial Margin Woes

Per the Zacks analyst, margin woes remain a perennial threat for Harris as foreign defense spending tends to be highly volatile due to stiff regulations that can hold up sales or lead to cancellation.

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Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
Pfizer Inc. (PFE) : Free Stock Analysis Report
 
Humana Inc. (HUM) : Free Stock Analysis Report
 
Facebook, Inc. (FB) : Free Stock Analysis Report
 
Emerson Electric Co. (EMR) : Free Stock Analysis Report
 
BHP Billiton Limited (BHP) : Free Stock Analysis Report
 
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