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Pfizer (PFE) COVID, cancer drugs key to revenue growth

We’re in the thick of first-quarter earnings season, and in this week’s busy lineup is a blue-chip drugmaker Pfizer (EFP, $49.34).

PFE appears early in this week’s earnings calendar, with Big Pharma set to release its first-quarter results before Tuesday’s open. Analysts expect earnings of $1.48 per share, up 59% year on year. Revenue is expected to reach $24.0 billion (+64.4% year-on-year).

Wall Street thinks Pfizer’s COVID-19 plans that include a vaccine co-developed with BioNTech (BNTX) and Paxlovid, its oral treatment that won regulatory approval last December, will bring $12.5 billion to its figure. business, said Wells Fargo analyst Mohit Bansal.

While Bansal expects PFE to be a bit below that estimate, he expects solid momentum in the company’s non-COVID business, with cancer drugs Ibrance and Inlyta “ahead of the consensus. “. The analyst has an overweight (equivalent to buy) rating on Dow Jones stock.

And Bansal is in good company. Of the 23 analysts who follow the stock and are tracked by S&P Global Market Intelligence, eight say it is a strong buy, one calls it a buy and 14 have it on hold.

Cheap Advanced Micro Devices Stock Before Earnings

Advanced micro-systems (AMD, $87.93) has been hit hard by market headwinds in 2022, down more than 38% year-to-date.

Can a strong earnings report boost the semiconductor stock?

Raymond James analyst Chris Caso recently upgraded AMD to Outperform’s Strong Buy. He believes Advanced Micro Devices is attractively valued, remaining well below its average forward price-to-earnings ratio of 40 over the past three and five years.

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Caso admits that a potential slowdown in the PC market and the sustainability of revenue growth from recently acquired Xilinx are of concern. However, “we have great confidence in AMD’s position and market share gains in the data center market,” the analyst said, with “tight supply conditions encouraging customers to engage with AMD to ensure supply”.

Analysts are bullish ahead of AMD’s Q1 2022 report. Consensus estimates have Advanced Micro Devices reporting earnings of 91 cents per share (+75% year-over-year) and revenue $5.5 billion (+60.3% year-on-year).

DraftKings Q1 Revenue to Show Strong Growth

DraftKings (DKNG, $14.20) The stock is down nearly 50% year-to-date, but Wall Street pros are more bullish on the online sports betting company than not. Of the 28 analysts who follow DKNG and are tracked by S&P Global Market Intelligence, 12 have it at Strong Buy, four call it a Buy and 12 think it’s a Hold.

Needham analyst Bernie McTernan is one of those with a buy rating on DKNG, calling the company “a leader in North America’s emerging online gaming market”, with a market opportunity of $35 billion.

Oppenheimer analyst Jed Kelly (Outperform) agrees, adding that the company’s “skills in product development and customer acquisition” have helped it become a market leader. These will also play a key role in DKNG taking a roughly 25%-30% share of a rapidly growing market as more states regulate online sports betting (OSB) .

In the near term, DraftKings “acquires players faster and more efficiently as OSB scales nationally (3.5% of Arizona adults in the first six months vs. 1.3%) for New Jersey,” Kelly said.

As for DKNG’s first-quarter earnings report – due out before the May 6 open – analysts are looking for an average of $414.4 million in revenue (+32.7% YoY) and a loss of $1.16 per share, higher than 87 cents. loss per share incurred by the company in the prior year period.