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Top Stock Analyst Reports for Pfizer, Wells Fargo & SAP

Sheraz Mian

Wednesday, January 22, 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 Pfizer (PFE), Wells Fargo (WFC) and SAP SE (SAP). 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 underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-4.3% vs. +14.7%). The Zacks analyst believes that the Consumer Healthcare joint venture with Glaxo, the Array acquisition and the pending merger of Upjohn unit with Mylan, 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. The company expects continued strong growth of key brands like Ibrance, Xeljanz and Eliquis to drive sales in the coming quarters. Pfizer is also strengthening its pipeline and hopes to launch new innovative medicines in the next five years.

However, Lyrica generic erosion, currency headwinds and pricing pressure are key near-term, headwinds. Estimates have gone up ahead of Q4 earnings release. Pfizer has a positive record of earnings surprises in the recent quarters. 

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

Shares of Wells Fargo have gained 3.7% in the past six months against the Zacks Major Regional Banks industry's rise of +11%. The Zacks analyst believes that Strategic acquisitions, along with rising loans and deposit balances, are impressive which is likely to aid NIM.

Though the company's investment in the businesses to enhance compliance and risk-management capability seems encouraging, Wells Fargo has been slapped with several sanctions, which continues on the CFPB's dissatisfaction with the bank’s progress on fixing risk-management issues. Also, rising costs curb bottom-line expansion.

Further, the company's earnings surprise history remains unimpressive, having surpassed the Zacks Consensus Estimate in only two of the trailing four quarters. The company’s fourth-quarter 2019 earnings reflected lower net interest income and rise in expenses.

(You can read the full research report on Wells Fargo here >>>)

SAP’s shares have gained +6% over the past three months against the Zacks Computer Software industry's rise of +17.8%. The Zacks analyst believes that SAP is benefiting from strong growth in cloud and software revenues, and expanding customer base.

Robust adoption of S/4HANA, C/4HANA, Fieldglass, Concur and SuccessFactors Employee Central solutions hold promise. Further, SAP's alliances with Microsoft, Accenture and Verizon favor business prospects. Moreover, synergies from Qualtrics acquisition are enabling SAP to bolster Customer Experience segment revenues.

Additionally, strong demand for the company’s Intelligent Spend offerings among enterprises holds promise. Nonetheless, integration risks related to acquisitions are likely to limit margin expansion. Moreover, increasing investments to enhance cloud-based offerings are anticipated to weigh on bottom-line growth at least in the near term.

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

Other noteworthy reports we are featuring today include (CRM), TOTAL (TOT) and Eli Lilly (LLY).

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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) Business Reorganization Can Aid Sales Growth

Loan Growth Supports Wells Fargo (WFC), High Expenses A Woe

SAP Rides on Cloud Initiatives & Growth in S/4HANA Platform

Featured Reports

salesforce (CRM) Rides on Portfolio Strength and Buyouts

Per the Zacks analyst, salesforce is gaining from its diverse cloud offerings, which are helping it win customers globally.

LNG Focus, Strong Production Portfolio Aid TOTAL (TOT)

Per the Zacks analyst TOTAL's focus to develop LNG assets globally and its strong production growth through new startup are going to boost its performance.

New Drugs to Drive Lilly's (LLY) Sales Amid Generic Pressure

Per the Zacks analyst, higher demand for newer drugs should drive Lilly's sales amid generic competition for drugs like Cialis, rising pricing pressure and currency headwinds.

Loan Growth Supports U.S. Bancorp (USB), Higher Costs a Woe

The Zacks Analyst believes that improving economy and initiatives to expand market share have helped U.S. Bancorp witness growth in loan and deposits.

Sinopec (SNP) Banks on Gas-Rich Sichuan, Refining Hurts

Per the Zacks analyst, Sinopec's discovery of attractive and economically-viable gas reserves in Sichuan Basin will drive production.

Strategic Moves to Buoy Caterpillar (CAT) Amid Weak Demand

The Zacks analyst appreciates Caterpillar's proactive measures to lower production and control costs in the wake of weak demand.

New Products, Acquisition Fuel Zoetis (ZTS) Amid Competition

Per the Zacks analyst, Zoetis companion animal business driven by higher sales of Apoquel and Simparica should maintain growth amid competition.

New Upgrades

Target's (TGT) Omnichannel & Store Expansion to Boost Sales

Per the Zacks analyst, Target's focus on enhancing omni-channel capacities, coming up with new brands, remodeling stores and expanding same-day delivery options are likely to fuel top-line growth.

Growing Product Uptake, Robust Segmental Show Aid STERIS (STE)

The Zacks analyst is bullish on STERIS's strong performance of Healthcare Specialty Services segment and continued benefits obtained from the Synergy Health integration.

EchoPark & Franchise Business Drive Sonic Automotive (SAH)

Per the Zacks Analyst, EchoPark expansion is likely to boost Sonic Automotive's top-line growth. Further, its franchise business is also expected to grow organically via accretive acquisitions.

New Downgrades

Low 737 Deliveries, 787-Engine Issues Hurt Boeing (BA)

Per the Zacks Analyst, low 737 deliveries as a result of the worldwide grounding of 737 Max jets hurts sales.

Lower Rates, Rising Costs Hurt Associated Banc-Corp (ASB)

Per the Zacks analyst, lower interest rates will put pressure on Associated Banc-Corp's net interest margin.

Mainland China Weakness, Currency Woes Hurt Nu Skin (NUS)

Headwinds in Mainland China dented Nu Skin's top line in third-quarter 2019. Per the Zacks analyst, the dismal performance along with currency volatility led to weak projections for 2019.

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Wells Fargo & Company (WFC) : Free Stock Analysis Report
TOTAL S.A. (TOT) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report, inc. (CRM) : Free Stock Analysis Report
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