Today's Must Read
5G Wireless Strength Aids AT&T (T) Amid Stiff Competition
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Friday, August 27, 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 Pfizer Inc. (PFE), AT&T Inc. (T), and Intuit Inc. (INTU). 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 outperformed the Zacks Large-Cap Pharmaceuticals industry over the past year (+36.6% vs. +23.3%). The Zacks analyst believes that its efforts to drive growth through acquisitions, licensing deals and collaborative agreements bode well.
The Consumer Healthcare joint venture with Glaxo and the merger of Upjohn unit with Mylan not only diversify its portfolio of innovative drugs and vaccines but are also likely to boost revenue growth. Its COVID-19 vaccine candidate is now approved for emergency use in several countries and has become a key contributor to the top line. Currency headwinds and pricing pressure are key top-line headwinds though.
AT&T shares have gained +0.1% over the last six months against the Zacks Wireless National industry’s gain of +3.2%, but things seem to be improving lately for the company. The Zacks analyst believes that it is well poised to benefit from a solid subscriber growth on the back of a resilient business model and robust cash flow position.
The company aims to spin off its media assets and merge them with the complementary assets of Discovery in order to focus on core operations, reduction of debt burden and monetizing assets. AT&T, however, is witnessing a steady decline in linear TV subscribers as well as legacy services. Its efforts to woo customers with discounts and freebies take a toll on its margins.
Shares of Intuit have gained +47.9% in the year to date period against the Zacks Computer Software industry’s gain of +30.8%. The Zacks analyst believes that Intuit has been benefiting from a strong momentum in online ecosystem revenues as well as solid professional tax revenues.
The TurboTax Live offering has also been driving growth in the Consumer tax business. Its strategy of shifting its business to cloud-based subscription model is likely to generate stable revenues in the long term. High costs and expenses due to increased investments in marketing and engineering teams are expected to continue weighing on bottom-line results at least in the near term.
Other noteworthy reports we are featuring today include Novartis AG (NVS), Automatic Data Processing, Inc. (ADP) and Booking Holdings Inc. (BKNG).
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>>>