Zacks Investment Ideas feature highlights: Pfizer, Philip Morris and Tenet Healthcare
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For Immediate Release
Chicago, IL – October 31, 2024 – Today, Zacks Investment Ideas feature highlights Pfizer PFE, Philip Morris PM and Tenet Healthcare THC.
3 Stocks to Buy Following Robust Quarterly Results
The 2024 Q3 earnings season continues to chug along, with a decent chunk of S&P 500 companies already delivering their results.
And throughout the period, several companies, including Pfizer, Philip Morris and Tenet Healthcare, have stolen the spotlight, with each raising guidance.
Let's take a closer look at the reports.
Pfizer Sees Bullish Outlook
Pfizer shares have largely been disappointing in 2024, up 3% and widely underperforming relative to the S&P 500. Still, the recent set of favorable results could perk shares up in the near term, with the company raising its current-year sales guidance by a solid $1.5 billion while also raising its adjusted EPS outlook.
Strong demand for Paxlovid following a recent wave of COVID-19 helped drive the better-than-expected results, with successful cost-cutting measures also providing tailwinds. Impressively, the company is now on track to achieve at least $4 billion in cost savings by the end of its FY24. The successful cost-cutting plan is quite significant here for obvious reasons, namely margin expansion.
Analysts have taken their earnings expectations higher across the board over recent months, undoubtedly a bullish sign.
Philip Morris Reports Record Results
Philip Morris shares have been notably strong in 2024, up 45% and regularly seeing positive post-earnings reactions as of late. Impressively, the company delivered record net revenues and EPS, enjoying momentum across all regions and categories.
The favorable results have helped push the stock into a favorable Zacks Rank #2 (Buy), with the revisions trend for its current fiscal year shifting heavily bullish beginning in May.
The company's shipment volumes for its oral smoke-free products jumped nearly 25% year-over-year, primarily fueled by robust demand for ZYN nicotine pouches. Impressively, its nicotine pouch volumes jumped 41% in the US, whereas volumes outside of the US saw a 70% climb.
And to top it off, the company raised its quarterly dividend payout by a sold 3.8%, bringing the annualized tally to $5.40 per share. Philip Morris has long been a favorite among income-focused investors, regularly increasing its payouts over its history.
THC Shares Remain Hot
Tenet Healthcare shares have been scorching-hot in 2024, up 115% and even outperforming many of the Mag 7 members. Favorable quarterly results have helped keep shares moving higher, popping following the latest print that delivered an adjusted EBITDA guidance upgrade.