Tuesday, October 1, 2019

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Pfizer (PFE), DISH Network (DISH) and Micron Technology (MU). 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 in the past six months (-16.3% vs. -4.7%). 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 loss of exclusivity cliff will go away. Pfizer expects continued strong growth of key brands like Ibrance and Eliquis and biosimilars to drive sales in the second half.

However, currency headwinds, Lyrica LOE, weak sales in the sterile injectables portfolio and pricing pressure are top-line headwinds in 2019. Moreover, unfavorable changes in recommendation guidelines for Prevnar 13 and unfavorable FDA updates to the Xeljanz U.S. label may hurt sales of these key drugs in the second half.

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

Shares of DISH Network have gained 36.4% year to date, outperforming the Zacks Cable Television industry’s rise of 30.5% over the same period. The Zacks analyst believes that DISH is suffering from subscriber loss in the Pay-TV business, primarily due to stiff competition and cord-cutting.

Also, increasing programming and content expenses as well as higher retransmission fees are hurting profitability. Nevertheless, the company’s efforts to diversify its business from being a pure-play satellite-TV operator to an Internet TV operator are noteworthy. Sling TV subscriber base is also expanding, which is a positive.

Further, the company’s focus on acquiring and retaining subscribers, to boost profits over the long term, is expected to drive growth. Further, DISH announced that it will enter the U.S. wireless market as the fourth, nationwide, facilities-based network competitor.

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

Micron’s shares have gained 8.2% in the past three months, outperforming the Zacks Semiconductors industry’s rise of 3.7%. The Zacks analyst believes that the company is well-poised to benefit from the resurgence in DRAM demand, backed by a progress in customer inventory adjustments in the cloud, graphics and PC markets.

Moreover, its focus on increasing the mix of high-value solutions in its portfolio is a boon. Further, introduction of server processors that supports higher memory densities is likely to fuel demand for its solutions. Also, the company’s decision to cut down on capital expenditure will enable it to reach a balanced inventory level.

However, a higher mix of NAND, which has lower gross margin, falling memory prices and a slow decline in manufacturing cost, is likely to keep margins under pressure. Uncertainty hovering over trade and the economy is a concern as well.

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

Other noteworthy reports we are featuring today include The Walt Disney Company (DIS), Restaurant Brands International (QSR) and C.H. Robinson Worldwide (CHRW).

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

Download Free Report Now >>

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>>>