Monday, October 10, 2022

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 NVIDIA Corporation (NVDA), Pfizer Inc. (PFE) and Citigroup Inc. (C). 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 >>>

NVIDIA shares have underperformed the Zacks Semiconductor - General industry over the past year (-41.6% vs. -38.8%). The company’s near-term prospect looks gloomy due to weakening demand for its chips used in gaming and data center end markets. While the macroeconomic headwinds are impacting gaming chip demand, ongoing supply-chain issues are also hurting data center chip market.

The ongoing war between Russia and Ukraine is likely to continue negatively impact NVIDIA’s near-term revenues. Trade war between the US and China also remains a key concern.

However, solid uptake of artificial intelligence-based smart cockpit infotainment solutions is likely to aid NVIDIA growth. Additionally, collaboration with the likes of Mercedes-Benz and Audi is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space.

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

Pfizer's shares have gained +0.6% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +5.6%. The company is strongly placed in the COVID vaccines/treatment market right now. Its COVID-19 vaccine together with the oral antiviral pill, Paxlovid is expected to generate a combined $54 billion in sales in 2022.

Pfizer boasts a sustainable pipeline with multiple late-stage programs that can drive growth. However, currency headwinds and pricing pressure are key top-line headwinds. Concerns remain about its long-term growth drivers beyond its COVID-related products due to competitive pressure.

Our estimates for Pfizer’s top line suggest a CAGR decline of around 30% over the next three years. Estimates are stable ahead of Q3 earnings. Pfizer has a decent record of earnings surprises in the recent quarters

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

Citigroup shares have underperformed the Zacks Banks - Major Regional industry over the past year (-41.2% vs. -29.1%). The company is burdened with numerous investigations and lawsuits, along with transformational expenses, which are limiting its bottom-line growth. The elimination of overdraft fees will impede fee income growth in the near term.

However, Citigroup’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. It is progressing with its strategy to exit the global consumer banking business. With this, it will focus on institutional franchises, thereby improving long-term profitability.

The bank also intends to wind down its UK retail banking business, and expand personal banking and wealth management businesses in the region. Also, net interest income growth, decent liquidity and capital deployment plans are positives

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

Other noteworthy reports we are featuring today include Vertex Pharmaceuticals Incorporated (VRTX), Humana Inc. (HUM), and Canadian Natural Resources Limited (CNQ).

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>>>