Wednesday, January 18, 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), Abbott Laboratories (ABT) and Union Pacific Corporation (UNP). 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 past year (-13.9% vs. +14.6%), with the absence of credible growth drivers beyond the company's Covid offerings as the primary drag. Other issues like currency headwinds and pricing pressures are some of the other concerns.

Estimates have gone down slightly ahead of Q4 earnings. Pfizer has a mixed record of earnings surprises in the recent quarters. However, Pfizer boasts a diversified portfolio of innovative drugs and vaccines, including Ibrance and Prevnar.

Its COVID-19 vaccine and oral antiviral pill for COVID-19, Paxlovid have become a key contributor to the top line. Pfizer boasts a sustainable pipeline with multiple late-stage programs that can drive growth.

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

Abbott Laboratories shares have declined -10.1% over the past year against the Zacks Medical - Products industry’s decline of -38.4%. The company’s sales were negatively impacted by COVID-19 testing-related sales decline and a manufacturing stoppage initiated in February of certain infant nutrition formula products manufactured at Abbott's Sturgis, MI, facility.

However, excluding these negative factors, total worldwide sales increased 6% on an organic basis, benefitting from robust sales growth across the company’s core Established Pharmaceuticals and Medical Devices segments.

Meanwhile, the Diabetes Care business continued to benefit from the growing sales of its flagship CGM system, FreeStyle Libre. The raised 2022 guidance buoys optimism.

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

Shares of Union Pacific have underperformed the Zacks Transportation - Rail industry over the past year (-10.5% vs. -5.2%). The company is facing escalation in fuel costs as oil prices move north is worrisome. This phenomenon induced a 22% rise in the operating expenses in the first nine months of 2022. Fuel costs surged 78% in the period. The same is likely to have been high in the December quarter as well.  Detailed results will be out on Jan 24.

However, Union Pacific's efforts to reward its shareholders even in the current uncertain scenario please us. The company hiked dividend twice in 2021. In May 2022, UNP further upped its quarterly dividend by 10%. The railroad operator is also active on the buyback front.

Management expects share repurchases in 2022 to bearound $6.5 billion. UNP's strong free cash flow generating ability supports its shareholder-friendly activities. The uptick in overall volumes as labor woes ease is an added positive.

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

Other noteworthy reports we are featuring today include The Goldman Sachs Group, Inc. (GS), Citigroup Inc. (C) and Intuitive Surgical, Inc. (ISRG).

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>>>