Thursday, January 19, 2023

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 PepsiCo, Inc. (PEP), Verizon Communications Inc. (VZ) and The Sanofi (SNY). 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 PepsiCo have modestly lagged rival Coca Cola over the past year (-2.3% vs. -1.1%), but they have done notably better than the Zacks Consumer Staples sector (down -5.7%) and the S&P 500 index (down -14.7%). The company is undoubtedly faced with near-term margin pressures on account of higher expenses, but it is nevertheless well positioned to profitably operate in this environment.

PepsiCo’s revenues and earnings beat the Zacks Consensus Estimate and improved year over year in the third quarter. This marked the 17th straight quarter of sales beat. The company benefits from the resilience and strength of global beverage and convenient food businesses.

It expects to benefit by delivering convenience, variety and value proposition to customers through its brands. It raised its revenue view for 2022.

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

Shares of Verizon Communications have underperformed the Zacks Wireless National industry over the past year (-25.3% vs. -11.7%). The company reiterated its soft guidance for 2022 due a to challenging macroeconomic environment. An intensely competitive market and hefty expenses on promotions and lucrative discounts to attract customers are likely to hurt profitability. Spectrum crunch with a saturated wireless market is another headwind.

However, Verizon plans to accelerate the availability of the 5G Ultra Wideband network with C-Band deployment, focusing on 5G mobility, nationwide broadband, mobile edge compute and business solutions. It is offering various mix-and-match pricing in both wireless and home broadband plans.

Verizon is also aggressively expanding its fiber optics network to support 4G LTE, 5G wireless standards and wireline connections. Customer-focused planning, disciplined engineering and continued network upgrades will likely augment its market position.

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

Shares of Sanofi have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-5.6% vs. +13.2%). The company is facing headwinds which includes weak performance of diabetes drugs and recent negative pipeline developments. Shares have underperformed the industry this year so far.

However, Sanofi’s Specialty Care unit is on a strong footing, particularly with the regular label expansion of Dupixent. Dupixent has become the key top-line driver for Sanofi. With outside U.S. revenues accelerating and multiple approvals for new indications, its sales are expected to be higher. Sanofi possesses a leading vaccine portfolio, which has become the primary top-line driver.

Its R&D pipeline is strong. Several data read-outs are expected in 2023. Sanofi’s Consumer unit is delivering above-markett sales growth. It has also launched several new drugs in the past couple of years and is expanding its pipeline through M&A deals.

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

Other noteworthy reports we are featuring today include Vale S.A. (VALE), Synopsys, Inc. (SNPS) and Paychex, Inc. (PAYX).

Director of Research

Sheraz Mian

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>>>