Top Stock Reports for Pfizer, Philip Morris & American Tower
Thursday, June 22, 2023
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), Philip Morris International Inc. (PM) and American Tower Corporation (AMT). 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 >>>
Shares of Pfizer have underperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (-22.7% vs. +3.2%). The company’s top line is expected to decline in 2023 due to potentially steep declines in revenues from its COVID-19 products, Comirnaty vaccine and Paxlovid oral pill, on lower demand.
Concerns remain about its long-term growth drivers beyond its COVID products due to competitive pressure. Nonetheless, Pfizer boasts a diversified portfolio of innovative drugs and vaccines, including Ibrance, Abrsyvo and Prevnar.
Pfizer is witnessing solid pipeline progress and expects to launch some key non-COVID products in 2023, which can drive long-term sales and profit growth. Its cash position is strong, which can be used to make acquisitions, increase dividends, buy back shares and reduce debt. Importantly, Pfizer shares are hardly expensive and offer a 'juicy' dividend that is currently yielding 4.2%.
(You can read the full research report on Pfizer here >>>)
Shares of Philip Morris have declined -5.2% over the past six months against the Zacks Tobacco industry’s decline of -7.7%. The company has been battling cost-related headwinds and expects certain margin pressures in the first half of 2023. Also, soft cigarette shipment volumes and volatile currency movements have been concerns.
In 2023, the total international industry volume is estimated to decline by 1-2%, excluding China and United States. Nevertheless, Philip Morris has been gaining from its pricing power. Higher pricing variance was an upside to the company’s performance in the first quarter of 2023 and is likely to drive performance in the full year.
A focus on reduced risk products, especially IQOS, has been working well for the company, which is witnessing a continued product mix shift from cigarettes to smoke-free products. These upsides are likely to boost organic revenues in 2023.
(You can read the full research report on Philip Morris here >>>)
Shares of American Tower have underperformed the Zacks REIT and Equity Trust - Other industry over the year-to-date period (-10.4% vs. -1.2%). However, Zacks analyst believes that the company’s extensive and geographically diversified communication real estate portfolio is set to benefit from the high capital spending by wireless carriers amid the incremental demand from global 4G and 5G deployment efforts, growing wireless penetration and spectrum auctions.
Its resilient and stable business model helps in generating steady revenues. Also, focus on macro-tower investment opportunities has enabled it to fortify its position in the global market, aiding growth.
Strategic buyouts and a solid balance sheet enable it to capitalize on the secular trends of the industry. Further, given the company’s lower-than-industry dividend payout and solid operating fundamentals, we expect its dividend distribution to be sustainable over the long run.
(You can read the full research report on American Tower here >>>)
Other noteworthy reports we are featuring today include Boston Scientific Corporation (BSX), América Móvil, S.A.B. de C.V. (AMX) and Northrop Grumman Corporation (NOC).
Director of Research
Sheraz Mian
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) Acquisitions to Boost Growth & Pipeline
Philip Morris (PM) Gains From Solid Pricing Amid Cost Woes
5G Buildout Boosts Demand for American Tower's (AMT) Assets
Featured Reports
Strategic Buyout Aid Boston Scientific (BSX), Forex Woes Ail
Per Zacks analyst, Boston Scientific's Apollo Endosurgery buyout advances company's leadership strategy within the growing area of endoluminal surgery. Yet, foreign exchange woes remain a concern.
Order Growth Aids Northrop Grumman (NOC), COVID Impacts Woe
Per the Zacks Analyst, solid order flow for its products bolsters Northrop Grumman revenue growth prospects. Yet, COVID induced supply chain shortages might hurt the stock's results.
Ulta Beauty (ULTA) Gains on Robust Skincare Category Sales
Per the Zacks analyst, Ulta Beauty has been gaining on its skincare category strength. In the first quarter, skincare was the top-performing category, with double-digit growth in mass and prestige
Strong Booking Trends Aid Carnival (CCL), High Costs Hurt
Per the Zacks analyst, solid bookings backed by increased demand and advertising activities as well as bundled package offerings aid Carnival. However, high costs and coronavirus-related woes hurt.
WEX Gains From benefitexpress Buyout, Low Liquidity Ails
Per the Zacks Analyst, the benefitexpress acquisition has expanded WEX's offerings in benefits administration by bringing in a complementary suite of solutions. Low Liquidity remains a concern.
Science Applications (SAIC) Rides on Contract Wins, Buyouts
Per the Zacks analyst, Science Applications is benefiting from new contracts supporting IT modernization. Moreover, strategic buyouts like Koverse and Halfaker and Associates bode well for growth.
Patterson-UTI (PTEN) to Gain from NexTier Merger
The Zacks analyst believes that Patterson-UTI Energy's merger with NexTier Oilfield Solutions will create an oil services giant but is worried over the recent dip in North American rig count.
New Upgrades
America Movil (AMX) Benefits from Increasing Subscriber Base
Per the Zacks analyst, America Movil's performance is gaining from increasing broadband client base. Focused 5G efforts and the deployment of advanced technologies are other tailwinds
U.S. Budget to Aid TransDigm (TDG) Amid Supply Chain Woes
Per the Zacks analyst, expansionary budgetary policy adopted by the U.S. administration should benefit TransDigm. Yet consistent supply chain challenges might impact the stock.
Host Hotels (HST) to Ride on Lodging Industry Recovery
Per the Zacks analyst, Host Hotels is poised to benefit from rebound in the lodging industry driven by continued strength in leisure demand and improving business transient and group demand.
New Downgrades
Higher CTO Prices & Destocking Ail Ingevity (NGVT)
Per the Zacks analyst higher crude tall oil (CTO) prices will hurt margins in the company's Performance Chemicals unit. Customer destocking may also affect volumes in industrial specialties.
Weak Retention & Growing Debt Affect ProAssurance (PRA)
Per the Zacks analyst, volatility in ProAssurance's premium retention in physician business can hinder top-line growth. Also, a rising debt level is concerning.
EPAM Systems (EPAM) Hurt by Weakening Demand Environment
Per the Zacks analyst, EPAM's growth prospects might be hurt by the deteriorating demand environment as organizations are turning more cautious on IT spending amid the ongoing macroeconomic headwinds.
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Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
American Tower Corporation (AMT) : Free Stock Analysis Report
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
America Movil, S.A.B. de C.V. Unsponsored ADR (AMX) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
