Top Analyst Reports for Pfizer, Salesforce & ADP

Wednesday, September 5, 2018

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 (PFE), Salesforce (CRM) and ADP (ADP). 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 >>>

Pfizer 's shares have outperformed the peer group year-to-date (the stock is up +14.2% over this period vs. a +3.8% increase for the Zacks Large-Cap Pharmaceuticals industry). Pfizer has been working on strengthening its product portfolio through acquisitions and licensing deals.

However, Pfizer is facing top-line headwinds in the form of genericization of key drugs, supply challenges in the legacy Hospira portfolio, pricing pressure and rising competition. Nonetheless, the Zacks analyst thinks new products like Ibrance, contribution from acquisitions, cost-cutting efforts, a lower tax rate and share buybacks should help the company achieve its guidance.

Pfizer also boasts a strong pipeline and expects approximately 25 to 30 drug approvals through 2022, including around 15 products that have blockbuster potential. Pfizer's growing immuno-oncology portfolio has strong potential. Bavencio is being considered a key long-term growth driver for Pfizer. In oncology, Pfizer has four potential medicines under FDA's priority review.

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

Shares of Strong-Buy ranked Salesforce have handily beaten the broader Tech sector over the past year, with the stock up nearly three times the Zacks Technology sector's +20.2% gain. Salesforce reported stellar Q2 results and provided a strong outlook.

The Zacks analyst thinks the company's diverse cloud offerings and strong spending on digital marketing remain the catalysts. Management is extremely optimistic about enhancement of customer experience that has aided growth of the cloud segment. Additionally, strategic acquisitions and the resultant synergies are anticipated to prove conducive to growth over the long run.

Furthermore, the company's move of utilizing other data center operators like Amazon and Alphabet's geographical reach to expand its international business is commendable and will help it in achieving its targeted $23 billion sales mark by 2022. Nonetheless, stiff competition, currency fluctuations and an increase in investments for international expansions and data centers could negatively impact near-term profitability.

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

ADP 's shares have gained +34.9% over the past year,outperforming the Zacks Outsourcing industry, which has gained +30.6% over the same period. ADP reported strong fourth-quarter fiscal 2018 results, wherein both earnings and revenues surpassed expectations.

The Zacks analyst thinks ADP holds a dominant position in the payroll processing and HCM market, primarily due to its robust product portfolio. Acquisitions have also been a key growth catalyst for the company. Further, the company's strong balance sheet enables it to continue with its shareholder friendly activities alongside strategic buyouts and investments on product development.

However, ADP faces significant competition in each of its product lines. Failure to meet varying client demands with updated technologies might reduce the demand for its solutions and services, thus hampering its position in the market. Further, the company's dependence on its payroll, financial, accounting, and other data processing systems remains a concern.

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

Other noteworthy reports we are featuring today include Accenture (ACN), General Motors (GM) and Southwest Airlines (LUV).

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Mark Vickery

Senior Editor

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 Trendsand Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Pfizer (PFE) Boasts Strong Oncology Pipeline

Salesforce (CRM) Rides on Portfolio Strength and Buyouts

ADP Benefits From WorkMarket Buyout Amid High Competition

Featured Reports

Dividends & Buybacks Aid Southwest (LUV) Amid Cost Woes

The Zacks analyst is impressed by the company's efforts to reward shareholders through dividends & buybacks. High labor and fuel costs are, however, limiting bottom-line growth.

Global Jet Demand Aids HEICO (HEI), High Interest Rates Ail

Per the Zacks analyst, increased aircraft demand should boost growth for HEICO's jet engine and components business. Yet, rising interest rates may hamper its position in the U.S. credit market.

Michael Kors (KORS) Runway 2020 Strategic Plan to Lift Sales

Per the Zacks analyst, Michael Kors Runway 2020 strategic plan, which focuses on product innovation, brand engagement, fleet modernization and digital innovation should help drive sales.

Inogen (INGN) Business-to-Business Grows, Rental Sales Down

Inogen has been gaining from solid business-to-business sales in the United States. The Zacks analyst is pessimistic about the company's falling rental revenues.

Hyatt (H) Rides on Unit Expansion & Strong Loyalty Program

Per the Zacks analyst, Hyatt's strong brand presence and continual expansion strategies are the major growth drivers. Further, a robust loyalty program add to the positives.

Higher Fees Aid Willis Towers' (WLTW) Revenues, Costs Ail

Per the Zacks analyst, higher commissions and fees will continue to boost revenues for Willis Towers, thereby accelerating the company's overall growth.

Strategic Initiatives Aid Regions (RF), Low Fee Income a Woe

Per the Zacks analyst, Regions' focus on inorganic growth routes along with Simplify and Grow initiative are favorable factors.

New Upgrades

Networking Platforms Segment to Aid Ciena Corporation (CIEN)

Per the Zacks analyst, solid traction of Ciena's Networking Platforms Segment, fueled by strong network infrastructure demand in the Asia Pacific region, will continue to lend momentum to the company.

Solid Order Growth, Strategic Divestments Aid Textron (TXT)

Per the Zacks analyst, solid order growth for its varied products boost Textron's growth. Also, it uses cash proceeds from strategic divestitures to reward its shareholders through share repurchases.

Debt Cuts, Action 2020 Initiatives Drive ArcelorMittal (MT)

The Zacks analyst is impressed with the company's efforts to reduce debt. Moreover, costs reduction and high-value products line expansion under its Action 2020 initiative should boost performance.

New Downgrades

General Motors' (GM) Sales Decline on Thinner Discounts

Per the Zacks analyst, General Motors' strategy to pull back on sales discounts, mainly for full-size pickups have hurt its sales. This has been more so as the retail demand for vehicles is declining.

Cost Inflation to Hurt Campbell Soup's (CPB) Gross Margin

Per the Zacks analyst, cost inflation continued to hurt Campbell Soup's gross margin in fourth quarter. The company expects cost inflation of 4%-5% in fiscal 2019, which is likely to hit gross margin.

Accenture (ACN) Hurt by Pricing Pressure, Integration Risk

The Zacks analyst is worried about the pricing pressure faced by Accenture due to stiff competition from rival companies. Further, buyout related integration risks are likely to hurt the company.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Pfizer Inc. (PFE): Free Stock Analysis Report

Southwest Airlines Co. (LUV): Free Stock Analysis Report

General Motors Company (GM): Free Stock Analysis Report Inc (CRM): Free Stock Analysis Report

Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report

Accenture PLC (ACN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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