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Top Analyst Reports for Eli Lilly, Honeywell International & American Express

Thursday, March 23, 2023

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), Honeywell International Inc. (HON) and American Express Co. (AXP). 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 (+16.4% vs. +1.8%). 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 Trulicity, Taltz and others.

It is regularly adding promising new pipeline assets through business development deals. Lilly expects to launch four new medicines by 2023 end, with Mounjaro for type II diabetes already launched and cancer drug Jaypirca already approved. Mounjaro is off to a solid start.

However, the CRL for donanemab will probably delay the potential launch of the candidate. Generic competition for several drugs, rising pricing pressure in the U.S. and some international markets are some top-line headwinds.

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

Shares of Honeywell International have outperformed the Zacks Diversified Operations industry over the past six months (+10.1% vs. +3.4%). Due to a recovery in commercial flight hours, strength in its advanced materials business and improvement in process technologies augur well for the company’s growth.

Pricing actions and cost-control measures continue to drive the company’s top line. The company’s bullish forecast for 2023 holds promise. Efforts to handsomely reward shareholders with dividends and share buybacks are attractive, as well.

However, volume softness due to supply-chain disruptions, especially semiconductor and parts shortages, is concerning. Weakness in the Safety and Productivity Solutions unit, due to lower personal protective equipment and warehouse automation volumes, is also worrisome. Raw material cost inflation and adverse foreign currency movements are other headwinds.

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

Shares of American Express have outperformed the Zacks Financial - Miscellaneous Services industry over the past six months (+18.5% vs. +3.6%). The company has adopted several growth initiatives, such as launching new products, enhancing existing features, reaching new agreements and forging alliances to boost revenues.

The Zacks analyst expects the top line to grow 15% year over year in 2023. Consumer spending on travel and entertainment, which carry higher margins for AmEx, is advancing well. Its balance sheet looks strong with manageable debt. Solid cash-generation abilities enable the pursuit of business investments and capital deployment.

However, with higher utilization of the company’s cards, expenses in card member services and rewards is likely to go up and dent the company's margins. Also, marketing and business development expenses are expected to rise. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include Lowe's Companies, Inc. (LOW), Altria Group, Inc. (MO) and Airbnb, Inc. (ABNB).

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) Potential New Products Key to Growth

Aerospace Unit Aids Honeywell (HON) Amid Supply-Chain Woes


Robust Revenues & Cash Flows Aid American Express (AXP)

Featured Reports

Lowe's Companies, Inc. (LOW) Benefits from Pro Sales Trends
Per the Zacks analyst, Lowe's Companies, Inc. is benefiting from higher Pro sales trends. In the fiscal fourth quarter, the company's U.S. pro sales jumped 10% year over year.

Altria (MO) Gains From Solid Pricing Power Amid Cost Woes
Per the Zacks analyst, Altria has been benefiting from its robust pricing power amid cost inflation. Elevated pricing aided the adjusted operating companies income during the fourth quarter of 2022.

Glaxo's (GSK) Specialty Drugs To Drive Sales in 2023
Glaxo's specialty products like Dovato, Nucala, Trelegy Ellipta, Shingrix, Juluca are driving sales, making up for a lower sales of established drugs due to generic erosion, per the Zacks analyst.

Asia Business Growth Aids Manulife (MFC), High Expenses Hurt
Per the Zacks analyst, expanding Wealth and Asset Management business, accretive acquisitions and developing Asian business poise Manulife well for growth. High expenses weigh on its margins.

Inorganic Growth Efforts Aid Raymond James (RJF), Costs Ail
Per the Zacks analyst, while Raymond James' efforts to expand through acquisitions and its global diversification efforts are expected to result in higher costs, these will likely drive the top line.

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 cutthroat competition

Build-To-Order Approach Aid MDC Amid Inflationary Pressures
Per the Zacks analyst, Build-to-Order approach and strategic acquisition strategies bode well for MDC. However, inflationary pressures and supply chain risks ail.

New Upgrades

Airbnb (ABNB) Banks on Strong Nights & Experiences Bookings
Per the Zacks analyst, strengthening gross nights booked in high-density urban areas, and recovery in both long-distance and cross-border travel are benefiting Airbnb's Nights & Experience bookings.

Solid Inventory Control for Lower Lead Time Aid Ubiquiti (UI)
Per the Zacks analyst, Ubiquiti is likely to benefit from a proprietary network communication platform and significant investments in inventory and operations management to reduce lead times.

Sunoco (SUN) to Gain From Rising Motor Fuel Sale Volume
Per the Zacks analyst, Sunoco is cashing in on higher motor fuel sale volume, which is being distributed to convenient stores. This will get translated into increased distributable cash flows.

New Downgrades

Rising Lease Operating Expenses Hurt Antero Resources (AR)
The Zacks analyst is concerned since increasing lease operating expenses continue to hurt Antero Resources' bottom line.

Knight-Swift (KNX) Grapples With Rising Operating Expenses
Per the Zacks Analyst, high costs related to driver wages, equipment, maintenance, fuel and other expenses are increasing Knight-Swift's operating expenses. This is likely to weigh on the bottom line.

Declining Backlog Amid Economic Slowdown Ails Thor (THO)
The Zacks Analyst is worried about Thor's standing amid the supply chain chaos, RV component shortage, input cost pressure and economic slowdown.

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Honeywell International Inc. (HON) : Free Stock Analysis Report

Eli Lilly and Company (LLY) : Free Stock Analysis Report

American Express Company (AXP) : Free Stock Analysis Report

Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report

Altria Group, Inc. (MO) : Free Stock Analysis Report

Airbnb, Inc. (ABNB) : Free Stock Analysis Report

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Zacks Investment Research