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Top Analyst Reports for Pfizer, BHP Billiton & Facebook

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Tuesday, July 3, 2018

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 - Free Report) , BHP Billiton (BHP - Free Report) and Facebook . 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 >>>

Buy-ranked Pfizer’s shares have outperformed the peer group year-to-date (the stock is up +0.3% over this period vs. a -5.1% decline for the Zacks Large-Cap Pharmaceuticals industry). Pfizer has been working on strengthening its product portfolio through acquisitions and licensing deals. However, Pfizer is facing headwinds in the form of genericization of key drugs, supply challenges in the legacy Hospira portfolio, pricing pressure and rising competition, which are hurting the top line.

Nonetheless, the Zacks analyst believes that new products like Ibrance, contribution from acquisitions, cost-cutting efforts, a lower tax rate and share buybacks should help the company achieve its guidance. Pfizer also boasts a strong pipeline and expects approximately 25 to 30 drug approvals through 2022, including around 15 products that have blockbuster potential. Pfizer’s growing immuno-oncology portfolio offers a strong potential. Bavencio is being considered a key long-term growth driver for Pfizer.

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

Shares of buy-rated BHP Billiton’s shares have outperformed the Zacks Mining-Miscellaneous industry over the past year (+34.2% vs. +23.1%). BHP Billiton is gaining competency on the back of sturdier productivity and remains on track to deleverage balance sheet over time. BHP Billiton expects capital and exploration costs to be lower than $8 billion by fiscal 2020-end. It is making its operations more efficient on the back of smarter technology adoption across the entire value chain.

BHP Billiton expects to secure productivity gains of $2 billion by fiscal 2019-end. The company's board recently approved a capital investment of $2.9 billion in the South Flank project in central Pilbara, Western Australia, adding a major project to its portfolio.

BHP Billiton remains focused on providing increased returns to shareholders. Also, the Zacks Consensus Estimate for the stock have been revised upward for both fiscal 2018 and fiscal 2019, over the last 30 days.

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

Buy-ranked Facebook’s shares have outperformed the S&P 500 index so far this year, gaining +11.9% vs. +2.3%. Facebook is benefitting from robust growth in advertising and user base. Facebook’s user base of 2.2 billion coupled with Instagram’s 1 billion users provides a huge canvas for advertisers, which, in turn, is driving the top line of the company. Rising mobile conversions on the platform is boosting mobile ad growth.

Growing popularity of Stories across all its major platforms, with Instagram taking center stage, is a tailwind. Apart from mobile and video, the monetization opportunities of Messenger, WhatsApp and Oculus and a huge user base are expected to drive growth going ahead. Facebook has a strong balance sheet and generates significant cash flow, which makes it an attractive stock for investors.

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

Other noteworthy reports we are featuring today include Tesla (TSLA - Free Report) , Emerson Electric (EMR - Free Report) and Humana (HUM - Free Report) .

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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>>>

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