Today's Must Read
Key Brands & COVID-19 Vaccine Drive Pfizer's (PFE) Sales
Verizon (VZ) Rides on Wireless Traction, Solid Demand Curve
Monday, August 2, 2021
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 Amazon.com, Inc. (AMZN), Pfizer Inc. (PFE), and Verizon Communications Inc. (VZ). 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 Amazon have lagged the broader market over the past year (+7% vs. +38% for the S&P 500), with the revenue 'miss' in the latest quarterly report adding to the clouds hanging on the stock. But the situation seems to be improving for the tech giant. The Zacks analyst believes that Amazon has been benefiting from its Prime program, delivery and logistic system in the e-commerce space. Further, its dominant position in cloud market is a positive.
Solid growth in online stores sales as well as robust Alexa skills and features along with expanding smart home products offerings are major tailwinds. Strong momentum across Amazon Music is likely to continue benefiting the streaming business. Steadily increasing costs related to the pandemic are a major concern for the company.
Pfizer shares have gained +25.2% over the last six months against the Zacks Large-Cap Pharmaceuticals industry’s gain of +14.6%. The Zacks analyst believes that the Consumer Healthcare JV with Glaxo and merger of Upjohn unit with Mylan has made Pfizer a smaller company with a diversified portfolio of innovative drugs and vaccines.
The company expects strong growth in its key brands like Ibrance, Inlyta and Eliquis to drive sales. Its COVID-19 vaccine, developed in record time, is now approved for emergency use in several countries and has become a key contributor to the top line. Currency headwinds and pricing pressure, however, are key top-line headwinds for Pfizer.
Shares of Verizon have lost -1.9% in the year to date period against the Zacks Wireless National industry’s gain of +2.4%, however, it reported strong second-quarter 2021 results with the top and bottom line beating the respective Zacks Consensus Estimate. The Zacks analyst believes that Verizon is likely to benefit from a disciplined network strategy, backed by customer-centric business model and diligent execution of operational plans.
The company revised its earlier guidance for 2021 to better reflect the improving business conditions. The proposed sale of Verizon Media reaffirms its focus on core wireless business. Hefty expenses on promotion and lucrative discounts to attract customers, however, hamper its profitability. The high auctioning expenses for mid-band spectrum is further likely to compromise margins.
Other noteworthy reports we are featuring today include PayPal Holdings, Inc. (PYPL), Chevron Corporation (CVX) and Boston Scientific Corporation (BSX).
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>>>