Top Analyst Reports for Cisco, CVS Health & Moderna

Friday, December 4, 2020

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 Cisco Systems, Inc. (CSCO), CVS Health Corporation (CVS) and Moderna, Inc. (MRNA). 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 Cisco have declined -8.0% in the year-to-date period against the Zacks Computer – Networking industry’s loss of -7.9%. The Zacks analyst believes that weakness in the commercial, service provider and enterprise end markets and coronavirus crisis-led supply chain constraints is likely to weigh on the company’s revenues. Also, weak demand for servers, and sluggish enterprise IT spending, remain concerns.

However, Cisco’s fiscal first-quarter results actually benefited from robust adoption of identity and access, advanced threat and unified threat management security solutions amid high growth in Internet traffic. Ongoing momentum in Webex video conferencing and business productivity offerings on account of COVID-19 induced work-from-home demand environment remains noteworthy. Also, strong demand for Catalyst 9000 family of switches aided growth. Moreover, the company provided encouraging guidance for the fiscal second-quarter.

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

CVS Health shares have outperformed the Zacks Retail – Pharmacies and Drug Stores industry over the past three-month period (+20.4% vs. +18.1%). In fact, the company ended the third quarter with earnings and revenues surpassing the respective Zacks Consensus Estimate. The Zacks analyst believes that the COVID-19 pandemic affected the Pharmacy Services business as new therapy prescriptions reduced due to lower provider visits. However, this segment delivered double-digit operating income growth reflecting strength in specialty pharmacy along with favorable purchasing economics.

Meanwhile, the year-over-year Retail/LTC revenue rise was primarily driven by increased prescription volume and higher front store revenues. Health Care Benefits arm benefitted from strong Medicare AEP. Increased guidance amid the pandemic scenario is another positive.

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

Moderna shares have gained +704.0% in the year-to-date period against the Zacks Medical – Biomedical and Genetics industry’s rise of +4.6%. The company’s coronavirus vaccine candidate achieved 94.1% efficacy rate in primary analysis and a EUA is anticipated by year-end. It is also developing several promising mRNA-based pipeline candidates, targeting a wide range of indications. The Zacks analyst believes that these candidates also attract partnerships with big pharma companies, thus generating funds through upfront and milestone payments, and reducing research and marketing costs.

However, Moderna’s sole dependence on partners for revenues is a concern. Early to mid-stage nature of its pipeline runs a high degree of risk. Any development setbacks would be a major disappointment for the company.

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

Other noteworthy reports we are featuring today include Pfizer Inc. (PFE), T. Rowe Price Group, Inc. (TROW) and Hilton Worldwide Holdings Inc. (HLT).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

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Today, See These 5 Potential Home Runs >>

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>>>

Today’s Must Read

Cisco (CSCO) to Gain From Security Products & Webex Adoption

CVS Health (CVS) Tackles Pandemic Crisis with Digital Strategy

Despite No Approved Products Moderna (MRNA) Looks Promising

Featured Reports

Cheniere’s (CQP) Profits to Rise on Lower Feedstock Costs

The Zacks analyst expects Cheniere Partners’ bottom line to get a boost from lower pricing of natural gas feedstock.

Solid Online Show Aids PVH Corp. (PVH) Amid Pandemic Woes

Per the Zacks analyst, PVH Corp. is gaining from strong online sales in all regions, even after the reopening of stores. Notably, online sales grew 36% year over year in third-quarter fiscal 2020.

Revenue Growth, Strong Balance Sheet Aid MarketAxess (MKTX)

Per the Zacks analyst, accelerating market share gains, record active clients and growing product suite poise the company well for growth.

Strategic Buyouts Aid LPL Financial (LPLA), High Costs Ails

Per the Zacks analyst, LPL Financial’s efforts to expand through strategic buyouts will likely aid financials and reflect a solid balance sheet.

Hilton (HLT) Banks on Unit Expansion Amid Low Occupancy Rates

Per the Zacks analyst, Hilton is likely to benefit from its solid development pipeline and hotel conversion opportunities. However, fall in occupancy rates and RevPAR due to the pandemic pose concerns

Pfizer’s (PFE) COVID-19 Vaccine Development Progress Rapid

The Zacks analyst believes that Pfizer has progressed rapidly with development/regulatory plans of its COVID-19 vaccine candidate. It has a strong portfolio of new drugs, which will accelerate growth

Debt-Free Level Aids T. Rowe Price (TROW), High Costs A Woe

Per the Zacks analyst, organic growth and debt free position with substantial liquidity remains key strengths at T. Rowe Price.

New Upgrades

Business Expansion & Solid Balance Sheet to Aid Magna (MGA)

Magna’s strategic collaborations like buyout of Hongli and healthy balance sheet having low leverage and high liquidity are likely to aid the company’s bottom line in future, per the Zacks analyst.

Strong Life Science Market to Drive Applied Industrial (AIT)

Per the Zacks analyst, solid momentum across its life science, food and beverage, and technology end markets will drive Applied Industrial’s top-line performance in the coming quarters.

Animal Health Continues to Boost Patterson Companies (PDCO)

Per the Zacks analyst, solid partnerships with product manufacturers and strong sales execution can drive robust margin improvement in Patterson Companies’ core Animal Health unit.

New Downgrades

Extended Import Tariff, Stiff Competition Hurts Hexcel (HXL)

Per the Zacks analyst, extended tariff on aluminum import leads to high input costs that poses concern for Hexcel’s growth. It also faces intense competition from both existing and new competitors.

Capacity Cuts & Rising Expenses Ail United Airlines (UAL)

The Zacks analyst is concerned about rising operating expenses. The rise in cost per available seat mile due to capacity cuts is another concern.

Weak License Revenues, Stiff Competition Hurts Splunk (SPLK)

Per the Zacks analyst, Splunk’s top-line growth is suffering from sluggish license revenues. Moreover, higher contribution from low-margin Cloud business along with stiff competition is hurting profit

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
T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report
Pfizer Inc. (PFE): Free Stock Analysis Report
Moderna, Inc. (MRNA): Free Stock Analysis Report
Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis Report
CVS Health Corporation (CVS): Free Stock Analysis Report
Cisco Systems, Inc. (CSCO): 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.

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