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Top Analyst Reports for Eli Lilly, Thermo Fisher Scientific & Lockheed Martin

Friday, April 14, 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), Thermo Fisher Scientific Inc. (TMO) and Lockheed Martin Corp. (LMT). 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 (+25.4% vs. +10.3%). The company’s revenue growth is being driven by higher demand for drugs like Trulicity, Taltz and others. 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 and mirikizumab will probably delay potential launch of the candidates by several months.

Generic competition for several drugs, rising pricing pressure in the United States mainly on key drug, Trulicity, and price cuts in some international markets like China, Japan and Europe are a few top-line headwinds. Estimates have gone up slightly ahead of Q1 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 Thermo Fisher Scientific have outperformed the Zacks Medical - Instruments industry over the past year (+3.0% vs. -11.1%). The company’s robust year-over-year revenue growth in the Analytical Instruments and the Laboratory Products and Biopharma Services segments appears promising.

During the fourth quarter, the company opened a new bioanalytical lab in Richmond, VA to support its clinical research business. The integration of PPD is largely complete and drove strong returns for the shareholders with outstanding execution and business performance throughout the year.

However, revenues within Europe declined in the low teens. The same in Asia Pacific fell in the mid-single digits, while China registered a decline in the mid-single digits. Revenues in the rest of the world declined in high-single digits.

(You can read the full research report on Thermo Fisher Scientific here >>>)

Shares of Lockheed Martin have outperformed the Zacks Aerospace - Defense industry over the past year (+7.0% vs. -0.1%). The company enjoys a consistent level of contract flows, and subsequent backlog growth bolsters its long-term revenue prospects.

It remains the largest U.S. defense contractor that has a steady order inflow from its leveraged presence in the Army, Air Force, Navy and IT programs. The U.S. budgetary provisions boost LMT’s business. Lockheed expects to deliver 147 to 153 F-35 aircraft in 2023 and 2024.

However, America and Turkey's tiff as a result of the latter accepting Russian products may hurt its component supply from Turkey. Lockheed is facing performance issues concerning some of its products, which may hurt its results. An uncertainty revolving around the possible sanction by China on Lockheed might impact the latter.

(You can read the full research report on Lockheed Martin here >>>)

Other noteworthy reports we are featuring today include Merck & Co., Inc. (MRK), Boston Scientific Corp. (BSX) and Canadian Pacific Railway Ltd. (CP).

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

Global Business Aids Thermo Fisher (TMO) Amid Forex Woes

Order Growth Boosts Lockheed (LMT), Tiff With Turkey Ails

Featured Reports

Keytruda to Remain Merck's (MRK) Key Top Line Driver
With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver, per the Zacks analyst.

New Buyouts Aid Boston Scientific (BSX), Mounting Costs Ail
Per the Zacks analyst, Boston Scientific is gaining from the Farapulse, Lumenis and Baylis buyouts. Yet, increased freight and labour costs and unfavorable manufacturing variances are concerns.

Canadian Pacific's (CP) Dividends Support, Fuel Costs Hurt
The Zacks analyst welcomes Canadian Pacific's efforts to add shareholder value. However, high operating expenses, mainly due to escalated fuel costs, are worrisome.

Travelers' (TRV) Auto & Homeowners Aids, Cat Loss Hurts
Per the Zacks analyst, Travelers is set to grow on the continued progress and growth at the profitable agency auto and homeowners business. However, exposure to cat loss induces earnings volatility.

Lamb Weston (LW) Benefits From Strategic Pricing Actions
Per the Zacks analyst, Lamb Weston is gaining on robust pricing actions. In the fiscal third quarter, price/mix increased 31%, reflecting gains from pricing actions in its core business units.

AECOM (ACM) Banks on Robust Backlog Amid Macroeconomic Risks
Per the Zacks analyst, strong backlog, increased contributions from America and International segments, digital and restructuring initiatives aid AECOM. However, persisting macroeconomic risks ail.

Twilio (TWLO) Banks on Growing Active Customer Accounts
Per the Zacks analyst, Twilio's continued focus on introducing products as well as its go-to-market sales strategy is helping it grow its active customer accounts, which is driving top-line growth.

New Upgrades

Rising Cloud Adoption, Portfolio Strength Aid Arista (ANET)
Per the Zacks analyst, rising demand for cloud solutions and continuous spending on IT infrastructure products for deployment in cloud environments are likely to benefit Arista.

Higher Prices, Geismar 3 Project Aid Methanex (MEOH)
Per the Zacks analyst, the Geismar 3 project will enhance the company's asset portfolio and future cash generation. Healthy methanol prices will also drive its margins. n

Drip-Quip (DRQ) Banks on Its Project Backlog Worth $240.9M
The Zacks analyst is impressed by Dril-Quip's rising project backlog, which was $240.9 million by the end of 2022. Also, the firm's balance sheet is debt free, highlighting a sound financial position.

New Downgrades

Higher Input Costs, China Slowdown Ail Mosaic (MOS)
Per the Zacks analyst, higher raw material costs due to tight supply will hurt the company's margins. Slowdown in China due to new pandemic-led lockdowns will also impact fertilizer demand.

Altice (ATUS) Plagued by Stiff Competition, High Debt Burden
Per the Zacks analyst, an unfavorable macroeconomic environment combined with intense competition and a high debt burden is likely to hurt Altice's margin.

Rising Net Outflows, Concentration Risk Hurt Lazard (LAZ)
Per the Zacks analyst, rising net outflows hurt Lazard's assets under management growth. Also, high dependence on financial advisory revenues is a concern, due to growing uncertainty in global markets

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Lockheed Martin Corporation (LMT) : Free Stock Analysis Report

Boston Scientific Corporation (BSX) : Free Stock Analysis Report

Merck & Co., Inc. (MRK) : Free Stock Analysis Report

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

Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report

Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report

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