Yahoo Finance Top Analyst Reports for Eli Lilly, Procter & Gamble & Morgan Stanley
Tuesday, February 27, 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), The Procter & Gamble Co. (PG) and Morgan Stanley (MS). 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’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+150.1% vs. +37.0%). The company’s revenue growth is being driven by higher demand for drugs like Mounjaro, Verzenio, Jardiance Taltz and others.
Lilly’s new FDA-approved tirzepatide medicines, diabetes drug Mounjaro and newly launched weight loss medicine, Zepbound, are expected to be key top-line drivers. Lilly has also launched some other new products recently like Omvoh and Jaypirca. These new products are expected to drive Lilly’s top line in 2024.
Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s. However, generic competition for some drugs, rising pricing pressure and challenges in meeting strong demand for incretin products like Trulicity are some top-line headwinds.
(You can read the full research report on Eli Lilly here >>>)
Shares of Procter & Gamble have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+19.4% vs. +15.9%). The company has been gaining from robust pricing and a favorable mix, along with strength across segments.
Procter & Gamble has been focused on productivity and cost-saving plans to boost margins. This led to the top and bottom lines beating the consensus mark for the fifth consecutive quarter in the first quarter of fiscal 2024. Consequently, PG has provided an optimistic fiscal 2024 view.
However, the company has been witnessing supply-chain issues, higher SG&A costs, higher transportation costs and rising inflation. Its significant international presence exposes it to foreign currency risks, which acts as a headwind.
(You can read the full research report on Procter & Gamble here >>>)
Morgan Stanley’s shares have gained +3.7% over the past six months versus the Zacks Financial - Investment Bank industry’s gain of +13.3%. The company's new strategic alliance with Mitsubishi UFJ will bolster its presence in Japan. Further, the company’s initiatives to become less dependent on capital-markets-driven revenue sources, inorganic growth efforts and high interest rates will support the top line.
However, the ambiguity of the performance of the capital markets is a woe and is expected to hurt the Institutional Securities segment’s prospects. Elevated operating expenses due to inflation and the company's investments in franchise are likely to hamper profitability.
(You can read the full research report on Morgan Stanley here >>>)
Other noteworthy reports we are featuring today include SAP SE (SAP), AT&T Inc. (T) and Medtronic plc (MDT).
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 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
P&G's (PG) Strong Cash Generation to Attract Investors
Expansion Efforts Aid Morgan Stanley (MS), High Costs a Woe
Featured Reports
Solid Momentum in Cloud Business Driving SAP's Performance
Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP offering. However, stiff competition in the cloud space is a concern.
AT&T (T) Rides on Wireless Traction, Customer-Centric Focus
Per the Zacks analyst, AT&T is likely to gain from an integrated fiber expansion strategy with a customer-centric business model, healthy momentum in postpaid wireless business and a lower churn rate.
Supply Stabilization, Higher AI Spending to Aid Micron (MU)
Per the Zacks analyst, the expectations of supply normalization by mid-year 2024 are likely to drive pricing, while the boom in AI spending is expected to fuel the demand for Micron's memory chips.
Solid Cash App Adoption & Square Ecosystem Aid Block (SQ)
Per the Zacks analyst, Block is benefiting from strong Cash App engagement and its growing active customer base. Further, the company's growing momentum across Square Ecosystem remains a positive.
Genuine Parts (GPC) Rides on KDG Acquisition Amid Debt Woes
While the KDG buyout has strengthened GPC's market-leading position in the North American industrial platform, rising long-term debt levels concern the Zacks analyst.
Investments, Expanding Customer Base Aid Atmos Energy (ATO)
Per the Zacks analyst, Atmos Energy's investment plan will help to increase the safety and reliability of its natural gas pipelines. Increasing customer count will boost demand for its services.
Product Innovation & Cost Control Efforts Aid Acuity Brands (AYI)
Per the Zacks analyst, Acuity Brands benefits from product innovation and cost-saving initiatives. Also, its emphasis on in-organic moves and intelligent Spaces Group bode well.
New Upgrades
Medtronic (MDT) Gains in Market Share, Global Growth Robust
The Zacks analyst is impressed that despite macro-economic issues, Medtronic is reporting market share gains across core businesses. Non-U.S. developed and emerging markets expansions remain strong.
Murphy USA (MUSA) Gains from Proximity to Walmart Stores
The Zacks analyst likes the proximity of Murphy USA's fuel stations to Walmart supercenters and the consistent traffic that these stores attract, thereby driving above-average fuel sales volume.
SkyWest (SKYW) Benefits From Improving Air-Travel Demand
The Zacks Analyst is impressed with the fact that increased air-travel demand is helping SkyWest carry more passengers and witness more revenues.
New Downgrades
Upstream Budget Tightness to Hurt ProPetro (PUMP)
The Zacks analyst believes that the tightness in the upstream companies' investment budget is likely to continue through this year, which is expected to weigh on ProPetro's revenues.
Charles River (CRAI) Affected by Rising Talent Cost Woes
Per the Zacks analyst, rising talent cost due to competition is a headwind to Charles River's growth. This is because the consulting industry is labor intensive and heavily reliant on foreign talent.
Select Medical (SEM) Suffers From an Elevated Expense Level
Per the Zacks analyst, a rise in expenses due to higher cost of services is likely to dent the company's margins. A debt-laden balance sheet induces an increase in interest expenses.
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Morgan Stanley (MS) : Free Stock Analysis Report
AT&T Inc. (T) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
