Top Stock Reports for Pfizer, BP & Fidelity National Information Services

Thursday, January 2, 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), BP p.l.c. (BP) and Fidelity National Information Services (FIS). 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 (-6.8% vs. +14.8%). 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, which can drive long-term growth.

However, Lyrica generic erosion, currency headwinds and pricing pressure are key near-term, top-line headwinds. Estimates have remained stable 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 BP have gained +3.7% in the past three months against the Zacks International Integrated Oil industry’s rise of +4.6%. The Zacks analyst believes that BP has been benefiting from a strong portfolio of upstream projects. Since 2016, the British energy giant has placed 23 major upstream projects online.

All the key projects BP has been delivering over the years backed the company to post record production levels. These projects will also help the firm boost production by 900 Mboe/d within 2021. Moreover, BP plans to boost spending on renewable power business as most European firms have decided to combat climate change.

However, the 2010 oil-spill incident in the BP-operated Macondo Prospect is still affecting the company. Although it cleared the huge litigation expenses related to the spill, it had to divest some of its best operating properties. Also, the company expects refining margins in the December quarter of 2019 to drop sequentially due to continued turnaround activities.

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

Fidelity National Information Services' shares have gained +9.8% over the past six months against the Zacks Financial Transaction Services industry's rise of +5.5%. The Zacks analyst believes that the company remains well positioned for growth backed by its attractive core business with a recurring revenue model, digitization, and several ongoing strategic initiatives.

Fidelity’s deal to acquire Worldpay is likely to accelerate its growth by boosting presence in faster growing markets. Also, the transaction will provide synergies of $700 million from revenue and cost management over next three years. However, the company remains exposed to consolidation in the banking sector and significant competition from new entrants. Also, unsustainable capital deployment activities of the company remain a concern.

(You can read the full research report on Fidelity National Information Services here >>>)

Other noteworthy reports we are featuring today include Deere & Company (DE), Occidental Petroleum (OXY) and Equity Residential (EQR).

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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) Business Reorganization Can Aid Sales Growth

BP Banks on Key Upstream Projects, Refining Weak

Digital Moves Aid Fidelity (FIS), Intense Competition Hurts

Featured Reports

Wirtgen Acquisition & Innovations Aid Deere (DE), Costs Ail

Per the Zacks analyst, Deere will gain from the Wirtgen acquisition, introduction of advanced technologies in its products and efforts to expand in precision agriculture despite inflated costs.

Acquisitions and JV in Permian Basin to Aid Occidental (OXY)

Per Zacks analyst Occidental's acquisition of Anadarko and joint venture with Ecopetrol expand its operation in Permian Basin and focus on high-margin region will boost its performance.

Equity Residential (EQR) to Gain from Steady Rental Demand

Per the Zacks Analyst, Equity Residential is likely to ride high with steady demand for rental housing in its markets.

TD Ameritrade (AMTD) Records High Trading Volumes and Revenue

The Zacks analyst believes TD Ameritrade is poised to growth through improving trading activities as DARTs expected to rise.

Acquisitions to Aid Cummins (CMI) Amid Low Truck Demand

Per the Zacks Analyst, Cummins' focus on making acquisitions and introducing innovative products will deliver higher returns amid declining demand for heavy trucks.

Solid Portfolio & Balance-Sheet Strength Aid Essex (ESS)

The Zacks Analyst expects Essex Property to benefit from strong property base in West Coast, solid balance sheet, favorable demographics, a resilient economy and job gains.

Energen Buy Boosts Diamondback (FANG) Amid Gas Pricing Woes

The Zacks analyst believes Diamondback's twin buys of Energen and Ajax Resources should bolster its Permian hold. However, the region's extremely low natural gas price is a concern.

New Upgrades

Soliris Label Expansion, Ultomiris Boost Alexion (ALXN)

Sustained growth in demand for lead drug, Soliris and encouraging uptake of long-acting C5 complement inhibitor, Ultomiris fuel Alexion. Recent deals/acquisitions should diversify its revenue base.

Strong Growth Across All Franchisees Driving Repligen (RGEN)

Per the Zacks analyst, Repligen's three product franchisees are generating significant revenues. In the first nine months of 2019, Repligen has witnessed strong organic revenue growth.

New Innovations, High Shipments Aids Enphase Energy (ENPH)

Per the Zacks Analyst, Enphase constantly innovates versions of its family of microinverters to capture shares of the expanding solar market. A ramp up in volume shipments also boosts prospects.

New Downgrades

NIKE's (NKE) Consumer Direct Offense Aids, Currency Hurts

Per the Zacks analyst, NIKE's Consumer Direct Offense strategy with strong digital growth is boosting sales and earnings performance. However, adverse currency hurts third-quarter fiscal 2020 view.

Weak Refining & Gas Import Losses Weigh on PetroChina (PTR)

The Zacks analyst is worried over PetroChina's weak refining prospects. Losses on the domestic resale of imported natural gas are also a concern.

Low Natural Gas Price, High Debt Ail National Fuel Gas (NFG)

Per the Zacks analyst National Fuel Gas' operations will get adversely impacted as fluctuating natural gas prices will lower demand for midstream services and high debts will hurt margins.

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Pfizer Inc. (PFE) : Free Stock Analysis Report
 
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
 
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
 
Equity Residential (EQR) : Free Stock Analysis Report
 
Deere & Company (DE) : Free Stock Analysis Report
 
BP p.l.c. (BP) : Free Stock Analysis Report
 
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