Yahoo Finance Top Stock Reports for Eli Lilly, Accenture & The TJX Companies
Friday, November 24, 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 Company (LLY), Accenture plc (ACN) and The TJX Companies, Inc. (TJX). 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 (+64.5% vs. +11.1%). The company’s revenue growth is being driven by higher demand for drugs like Verzenio, Trulicity, Taltz and others.
Sales of its weight-loss drug, Mounjaro, are already benefiting from strong demand trends. Mounjaro is expected to be a key long-term top-line driver for Lilly as it has the potential to be approved for obesity and other diabetes-related diseases. Mounjaro showed superior weight-loss reduction in clinical studies for obesity. Lilly expects regulatory decisions for some key pipeline candidates this year.
However, generic competition for some drugs, rising pricing pressure and challenges in meeting strong demand for incretin products are some top-line headwinds. Estimates have declined slightly ahead of Q3 results. Lilly has a mixed record of earnings surprises in the recent quarters
(You can read the full research report on Eli Lilly here >>>)
Shares of Accenture have gained +14.2% over the past year against the Zacks Consulting Services industry’s gain of +15.8%. The company has been steadily gaining traction in its outsourcing and consulting businesses backed by high demand for services that can improve operating efficiencies and save costs.
Accenture has been strategically enhancing its cloud and digital marketing suite through buyouts and partnerships. The company’s strong operating cash flow has helped it reward its shareholders in the form of dividend payments and share repurchases, and pursue opportunities in areas that show true potential. Partly due to these tailwinds,
On the flip side, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes it to foreign currency exchange rate fluctuations. Buyout-related integration risks continues to remain a concern.
(You can read the full research report on Accenture here >>>)
Shares of The TJX Companies have outperformed the Zacks Retail - Discount Stores industry over the past year (+12.7% vs. -1.2%). The company’s top and bottom lines beat the Zacks Consensus Estimate in last week's second quarter of fiscal 2024 results. Its off-price business model, strategic store locations, impressive brands and fashion products and supply-chain management have been working well.
The TJX Companies is benefiting from its solid store and e-commerce growth efforts. TJX’s Marmaxx segment is doing particularly well, where comp store sales grew in the fiscal second quarter, backed by improved customer traffic. The recovery of the HomeGoods (U.S.) division bodes well.
However, TJX has been grappling with high wage and supply-chain costs. It expects these costs to be deterrents in fiscal 2024. A high debt level poses a concern for the company. Currency might also act as a deterrent.
(You can read the full research report on The TJX Companies here >>>)
Other noteworthy reports we are featuring today include Novo Nordisk A/S (NVO), Salesforce, Inc. (CRM) and Lockheed Martin Corporation (LMT).
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
ATI Solutions Buyout Aids Accenture (ACN) Amid Talent Cost
TJX Benefits From Strength in Marmaxx Unit, High Costs Ail
Featured Reports
Salesforce (CRM) Rides on Portfolio Strength and Buyouts
Per the Zacks analyst, Salesforce is gaining from its diverse cloud offerings, which are helping it win customers globally. Moreover, strategic buyouts like Slack and Tableau are positive.
Order Growth Boosts Lockheed (LMT), Tiff With Turkey Ails
Per the Zacks analyst, steady order flow continues to boost Lockheed's revenue growth. Yet, the U.S. government's tiff with Turkey over its involvement in Russia's S-400 may hurt F-35 program.
Cadence (CDNS) to Benefit From Strong Portfolio & Buyouts
Per the Zacks analyst, Cadence's performance is gaining from robust demand for its products and synergies from buyouts.
Suncor (SU) Supported by Integrated Business Model
The Zacks analyst believes that Suncor's integrated business model puts it in a good position to generate significant cash flow but the company's extreme vulnerability to oil prices is a risk.
Favorable Budget Aids L3Harris (LHX), Labor Shortages Woe
Per the Zacks analyst, increased budgetary provision for defense spending boost growth prospects for L3Harris Technologies. Yet shortage of skilled labor may hurt the stock.
Acquisitions Aid Builders FirstSource (BLDR), High Costs Ail
Per the Zacks analyst, accretive acquisitions, digital enhancements and cost saving initiatives bode well for Builders FirstSource. However, high costs hurt growth prospects.
Motion Technologies Segment Benefits ITT Amid High Costs
Per the Zacks analyst, ITT will benefit from strength in the Motion Technologies segment, led by robust momentum in the friction OE (original equipment) business. High operating costs remain a woe.
New Upgrades
Strong Wegovy & Ozempic Demands Boost Novo Nordisk (NVO)
Per the Zacks Analyst, solid demand for Ozempic & Wegovy has fueled NVO's growth. NVO is also looking to mitigate Wegovy international supply constraints.
Solid Data-Center Demand, Expansions to Aid Equinix (EQIX)
Per the Zacks analyst, solid demand for Equinix's global data center portfolio amid rising enterprise cloud adoption and customers' digital demand augurs well. Strategic expansions are encouraging.
Haemonetics (HAE) Gains Ground on Solid Plasma Sales
The Zacks analyst is impressed with the strong plasma momentum helping Haemonetics to raise its fiscal 2024 outlook for this business. The latest enhancements to NexSys PCS will add more value.
New Downgrades
Mettler-Toledo (MTD) Suffers From Weak Laboratory Segment
Per the Zacks analyst, weak momentum in Laboratory segment due to broad-based softness in China is hurting Mettler-Toledo.
Virtu Financial (VIRT) Grapples With Decline in Revenues
Per the Zacks analyst, Virtu Financial's revenues were hurt by lower volatility and volumes across global markets. A decline in market volatility offers it lesser trading and trading opportunities.
High Costs & Volatile Cash Flows Ail Artisan Partners (APAM)
Per the Zacks analyst, Artisan Partners's rising operating costs on investments in technology are concerning. Volatile client cash flows and unsustainable capital distributions are other headwinds.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
