Top Analyst Reports for Eli Lilly, Linde & NextEra Energy
Thursday, January 18, 2024
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 Eli Lilly and Co. (LLY), Linde plc (LIN) and NextEra Energy, Inc. (NEE). 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 >>>
Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+80.9% vs. +18.8%). The company boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Verzenio, Trulicity, Taltz and others. Sales of its new drug, Mounjaro are already benefiting from strong demand trends.
Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s. Mounjaro was recently approved for the obesity indication by the name of Zepbound. Mounjaro and Zepbound are expected to be key top-line drivers for Lilly. It has also gained approvals for some other new drugs in 2023.
However, generic competition for some drugs, rising pricing pressure and challenges in meeting strong demand for incretin products are some top-line headwinds.
(You can read the full research report on Eli Lilly here >>>)
Shares of Linde have outperformed the Zacks Chemical - Specialty industry over the past year (+27.1% vs. +21.5%). The company is making its world more productive by the day with a wide range of applications for its industrial gases. The company’s primary products in industrial gases include oxygen, which is used as life support in hospitals.
Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. In the profitable industrial gas market, the merger of Praxair and Linde has created an efficient player with considerable size advantages.
However, increasing competition for new projects in emerging markets is concerning. The company faces vulnerability due to economic growth slowdown, potentially impacting industrial gas demand. Linde's history of consistently offering lower dividend yields compared to the composite stocks belonging to the sector concerns income-oriented investors.
(You can read the full research report on Linde here >>>)
Shares of NextEra have underperformed the Zacks Utility - Electric Power industry over the past six months (-17.9% vs. -7.3%). Due to the nature of its business the company is subject to complex regulations. Risks in operating nuclear units, unfavorable weather conditions and increasing supply costs adversely impact earnings.
Nevertheless, NextEra Energy continues to expand its operations through organic projects and acquisitions. The company has many renewable projects in its backlog and continues to enhance its renewable energy generation capacity.
NextEra’s subsidiary FPL’s customer base is expanding as Florida’s economy improves. The company has ample liquidity to meet its near-term debt obligations. It is expanding its operations in the water space through acquisitions. NextEra Energy decided to sell its gas assets in Florida to focus on its core business.
(You can read the full research report on NextEra Energy here >>>)
Other noteworthy reports we are featuring today include Honda Motor Co., Ltd. (HMC), Arthur J. Gallagher & Co. (AJG) and Block, Inc. (SQ).
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>>>
Today's Must Read
Lilly (LLY) New Products Hold Key to Long-Term Growth
Linde's (LIN) Long-Term Contracts with Minimum Volume Aid
NextEra (NEE) Gains from Steady Investment, Renewable Focus
Featured Reports
Improving Fees and Commissions Aid Arthur J. Gallagher (AJG)
Per the Zacks analyst, Arthur J. Gallagher is poised to grow on improving fees and commissions that in turn is driving organic revenues growth. However, rising expenses weighing on margin concerns.
Strength in Cash App and Square Ecosystem Aids Block (SQ)
Per the Zacks analyst, Block is benefitting from strengthening Cash App engagement and Square ecosystem, which is contributing well to its gross payment volume.
Fair Isaac (FICO) Benefits From Strong FICO Score Adoption
Per the Zacks analyst, Fair Isaac riding the strong adoption of its FICO Scores, which remains a dominant player in the consumer credit scoring market, as evident from an expanding clientele.
Dollar General's (DG) Defensive Product Mix Key to Growth
Per the Zacks analyst, Dollar General's defensive product mix, value-creating efforts and store growth are key to market expansion. Its commitment to better pricing and inventory aims to boost margins
NetApp (NTAP) Benefit From Growing Demand For Public Cloud
Per the Zacks analyst, Per the Zacks analyst, NetApp's performance is gaining from continued strength in public cloud business segment. However, weak macro conditions is a concern.
Buyout, Fee Income Aid Prosperity Bancshares (PB), Costs Ail
Per the Zacks analyst, decent loan demand, robust fee income growth and strategic buyouts will support Prosperity Bancshares amid weakness in mortgage banking business and strain on margin expansion.
Nordstrom's (JWN) Actions to Augment Customer Experience
Per the Zacks analysts, Nordstrom's focus on enhancing customer experience via improved Nordstrom Rack performance, higher inventory productivity and supply-chain optimization initiatives bode well.
New Upgrades
Collaborations & Cost-Control Efforts to Aid Honda (HMC)
Per the Zacks analyst, Honda's frequent collaborations to expand business bode well. Its global restructuring move to control costs and optimize production capacity could rev up profits.
Cardinal Health's (CAH) Diverse Products Gives Competitive Edge
Per the Zacks analyst, Cardinal Health's diversified portfolio represents long-term opportunities. Its products provide the company with a competitive edge in the niche space with fierce competition.
Stericycle (SRCL) Benefits from Multiyear Business Initiative
Per the Zacks analyst, Stericycle advances its multiyear Business Transformation initiative since 2017, focusing on revenue quality, efficiency, portfolio, debt reduction, and ERP.
New Downgrades
Regulations & Rising Input Costs Ail Canadian Solar (CSIQ)
Per the Zacks analyst, Canadian Solar's prospects will be impacted by rising input costs and expenses due to inflation. Stringent regulation in the import nation can reduce demand and profitability.
Schneider (SNDR) Continues to Grapple With Segmental Weakness
Per the Zacks Analyst, below par performance in the Truckload, Intermodal and Logistics segments is hurting Schneider's top line. The lowered earnings outlook for 2023 looks disappointing.
High Costs and Impending Acquisition Expenses to Hurt RH
Per the Zacks analyst, RH's performance is being hurt by unexpected higher expenses and expenditures linked to the impending acquisition of the New York Guesthouse property.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
