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Research Daily

Sheraz Mian

Top Stock Reports for Tesla, Procter & Gamble & Bristol-Myers Squibb


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Thursday, May 26, 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 Tesla, Inc. (TSLA), The Procter & Gamble Company (PG), and Bristol-Myers Squibb Company (BMY). 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 Tesla have outperformed the Zacks Automotive - Domestic industry over the past year (+4.4% vs. -24.6%) though the stock has been under pressure lately on market worries that Elon Musk's Twitter purchase will distract him from giving his full attention to his 'day job'. That said, despite severe chip shortage, the company has put up an impressive Q1 show, beating both top-and bottom-line expectations, thanks to stellar deliveries of Models 3 and Y. The Zacks analyst believes that deliveries to see an annualized growth of around 50% over the next three years. Ex-government credits, Tesla’s gross margins reached 30% in Q1.

This indicates that the supply-chain issues hitting the company are being passed along to the consumer. Additionally, Tesla’s energy generation and storage revenues outlook is promising. However, low Q2 deliveries from the Shanghai gigafactory could be a short-term headwind, we expect Tesla to deliver outsized returns in the long run on the back of production ramp-up and introduction of new models.

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

Shares of Procter & Gamble have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+10.1% vs. -2.0%). The company reported earnings surprise for more than three years, revenues beat estimates for the eighth straight time in the quarter. Results were driven by improved productivity amid cost headwinds, along with the rising demand for cleaning products. Gains from cost productivity also aided results. Management lifted its fiscal 2022 view. It witnessed SG&A expense leverage, owing to savings from overhead and marketing expenses, and cost leverage gains due to higher sales and real estate.

However, The Zacks analyst believes unfavorable mix, commodity cost inflation, increase in freight costs, product and packaging investments and other impacts hurt margins. It expects higher commodity and freight costs to persist in fiscal 2022.

(You can read the full research report on Procter & Gamble here >>>)

Shares of Bristol-Myers Squibb have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+21.3% vs. -37.8%). The company’s performance in the first quarter of 2022 was decent with earnings and sales beating estimates. The approval of new drugs adds a new stream of revenues, which should boost growth in the coming quarters. The pipeline progress has been impressive and strategic collaborations will further expand the portfolio.

Eliquis is the leading oral anticoagulant drug and continues to experience growth in its market share. The label expansion of Opdivo into indications of lung cancer, renal cancer and gastric cancer boosted sales. However, One of the top revenue generators Revlimid is facing generics soon, which will adversely impact sales. Lowering of guidance by the company was also disappointing.

(You can read the full research report on Bristol-Myers Squibb here >>>)

Other noteworthy reports we are featuring today include Wells Fargo & Company (WFC), American Express Company (AXP), and Intuit Inc. (INTU).
Sheraz Mian
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>>>

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