Today's Must Read
Coca-Cola's (KO) Digital Investments to Aid the Top Line
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
Monday, March 14, 2022
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), The Coca-Cola Company (KO) and Adobe Inc. (ADBE). 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 (+42.0% vs. +18.5%). Pfizer boasts a diversified portfolio of innovative drugs and vaccines including Ibrance and Prevnar. The Zacks analyst believes that no company is as strongly placed in the COVID vaccines/treatment market as Pfizer right now. Its COVID-19 vaccine has become a key contributor to the top line. The vaccine together with Pfizer’s promising oral antiviral pill for COVID-19, Paxlovid is expected to generate a combined $54 billion in sales in 2022.
Pfizer boasts a sustainable pipeline with multiple late-stage programs that can drive growth. However, currency headwinds and pricing pressure are key top-line headwinds. Concerns remain about its long-term growth drivers beyond its COVID-related products due to competitive pressure.
Shares of Coca-Cola have outperformed the Zacks Beverages - Soft drinks industry over the past year (+13.5% vs. +7.9%). Coca-Cola’s top and bottom-line surpassed estimates for the fourth straight quarter. The Zacks analyst believes that the results benefited from the company’s strategic transformation and ongoing recovery around the world.
Revenues gained from the investments and ongoing recovery in markets, where the pandemic-led disruptions are subsiding. Strength across majority of the markets, investments in marketplace, recovery in certain markets as well as the cycling of last year’s pandemic-led impacts aided volumes.
The company provided an upbeat 2022 view. It is poised to gain from innovations and accelerating digital investments. However, pressures from higher supply chain costs, including transportation and input costs remain. Higher marketing spends are also concerning.
Shares of Adobe have underperformed the Zacks Computer – Software industry over the past year (-7.0% vs. +9.7%). The Zacks analyst believes that lower end-market demand and high acquisition expenses remain major overhangs for the company.
However, Adobe is benefiting from strong demand for its cloud products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are helping it drive top-line growth. Additionally, rising subscription revenues and solid momentum across the mobile apps remain major positives.
Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. The Zacks analyst remain optimistic about Adobe’s market position, compelling product lines, persistent innovation and solid adoption of Creative Cloud and Adobe marketing cloud.
Other noteworthy reports we are featuring today include SAP SE (SAP), Sanofi (SNY) and GlaxoSmithKline plc (GSK).
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>>>