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Top Stock Reports for Eli Lilly, Altria & Becton Dickinson

Mark Vickery

Wednesday, April 10, 2019

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 (LLY), Altria (MO) and Becton, Dickinson (BDX). 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 >>>

Buy ranked Eli Lily's shares have outperformed the Zacks Large Cap Pharmaceuticals industry year to date, gaining +10% vs. +1.9%. The Zacks analyst thinks Lilly’s revenue growth in 2019 will likely be driven by higher demand for its newer drugs including Trulicity, Jardiance, Taltz, Verzenio as well as new migraine drug, Emgality as some older drugs like Cialis face generic competition.

In 2018, Lilly made significant pipeline progress with several positive late-stage data readouts, multiple approvals and regulatory submissions. Emgality could emerge as a significant contributor to long-term growth. Lilly has also added promising new pipeline assets through business development deals.

However, generic competition for several drugs including Cialis, rising pricing pressure, currency headwinds and the impact of the failed Lartruvo study are expected to put pressure on the top line. Estimates have gone up ahead of Q1 results. Lilly has a positive record of earnings surprises in recent quarters.

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

Shares of Altria have underperformed the Zacks Tobacco industry over the past three months (+12.7% vs. +19.8%). The Zacks analyst thinks the company has been steadily gaining from the popularity of Smokeless products. To further bolster this category, the company recently invested in JUUL and Cronos. Altria has also applied for converting its non-voting interests in JUUL to voting securities.

Pricing also continues to drive the company’s revenues. It has also undertaken cost-reduction initiatives to counter interest burden. Altria plans to deliver annualized cost savings of nearly $575 million by the end of 2019. However, the company grapples with persistently declining cigarette shipment volumes. Stern FDA regulations combined with increased health consciousness are taking a toll on the cigarette category.

Going forward, management expects cigarette industry volume to decline in the range of 3.5-5%. Further, the company’s wine category has been sluggish, thanks to stiff competition.

(You can read the full research report on Altria here >>>).

Becton, Dickinson’s shares have outperformed the Zacks Dental Supplies industry over the past year, gaining +12.5% vs. +1.5%. The Zacks analyst likes the solid performance by the core BD Medical and Life Sciences units. Domestic and international revenues increased year over year in recent times.

Management is optimistic about the C.R. Bard buyout which has consistently proven to be accretive. Notably, a series of product launches and regulatory approvals in recent times continue to boost the stock. The company has kept its fiscal 2019 guidance intact.

On the flip side, contraction in gross and operating margins in recent times is worrisome. Customer ordering patterns are also expected to negatively impact fiscal second-quarter results. Management expects unfavorable foreign currency to remain headwinds in fiscal 2019. Stiff price competition in the MedTech space adds to its woes.

(You can read the full research report on Becton, Dickinson here >>>).

Other noteworthy reports we are featuring today include T-Mobile (TMUS), EOG Resources (EOG) and General Motors (GM).

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

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>>>

 

Wednesday, April 10, 2019

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 (LLY), Altria (MO) and Becton, Dickinson (BDX). 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 >>>

Buy rankedEli Lily'sshares have outperformed the Zacks Large Cap Pharmaceuticals industry year to date, gaining +10% vs. +1.9%. The Zacks analyst thinks Lilly’s revenue growth in 2019 will likely be driven by higher demand for its newer drugs including Trulicity, Jardiance, Taltz, Verzenio as well as new migraine drug, Emgality as some older drugs like Cialis face generic competition. In 2018, Lilly made significant pipeline progress with several positive late-stage data readouts, multiple approvals and regulatory submissions. Emgality could emerge as a significant contributor to long-term growth. Lilly has also added promising new pipeline assets through business development deals. However, generic competition for several drugs including Cialis, rising pricing pressure, currency headwinds and the impact of the failed Lartruvo study are expected to put pressure on the top line. Estimates have gone up ahead of Q1 results. Lilly has a positive record of earnings surprises in recent quarters.

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

Shares of Altria have underperformed the Zacks Tobacco industry over the past three months (+12.7% vs. +19.8%). The Zacks analyst thinks the company has been steadily gaining from the popularity of Smokeless products. To further bolster this category, the company recently invested in JUUL and Cronos. Altria has also applied for converting its non-voting interests in JUUL to voting securities. Pricing also continues to drive the company’s revenues. It has also undertaken cost-reduction initiatives to counter interest burden. Altria plans to deliver annualized cost savings of nearly $575 million by the end of 2019. However, the company grapples with persistently declining cigarette shipment volumes. Stern FDA regulations combined with increased health consciousness are taking a toll on the cigarette category. Going ahead, management expects cigarette industry volume to decline in the range of 3.5-5%. Further, the company’s wine category has been sluggish, tha

Today's Must Read

New Drugs to Drive Lilly's (LLY) Sales Amid Generic Pressure


Altria (MO) to Benefit From Strength in Smokeless Products


BD Medical Arm Drives Becton, Dickinson (BDX) Amid Rivalry


Featured Reports

EOG Resources (EOG) Gains on Eagle Ford, Well Expenses High

Huge inventory of premium drilling wells in the Eagle Ford shale will contribute to EOG Resources' oil production. But, escalating lease and well operating costs are a concern, per the Zacks analyst.

High Inventory & Weak Pricing to Weigh on General Motors (GM)

Per the Zacks analyst, a high inventory level of passenger cars is pushing General Motors to cut production. Also, weak used car pricing is troubling the automaker.

Enterprise Strategy Aids Illinois Tool (ITW), Costs Drag

Per a Zacks analyst, Illinois Tool's Enterprise strategy is strengthening the company's margins. However, tariff, forex and inflation related headwinds are affecting margins.

Margin Woes Negate Motorola's (MSI) Competitive Strength

Per the Zacks analyst, despite Motorola's competitive position and solid demand trends, higher working capital requirements due to new ERP implementation and margin woes have hurt its cash flow.

Acquisitions Likely to Keep Boosting Kellogg's (K) Top Line

Kellogg's fourth-quarter top-line growth was backed by acquisitions to the tune of 7%. Per the Zacks analyst, buyouts are set to be a driver in 2019, wherein revenues are expected to grow 3-4%.

Franco-Nevada (FNV) Bets on Oil & Gas, Mining Production Ails

Per the Zacks analyst, improved performance at Oil & Gas segment aided by higher oil prices and acquisitions will offset the impact of processing of lower grade materials at Candelaria mine.

Dividends, Buybacks Aid Hawaiian Holdings (HA) Amid Low RASM

The Zacks analyst likes the company's efforts to reward investors via dividends and share buybacks.

New Upgrades

T-Mobile (TMUS) Rides on Strong Networks, Subscriber Growth

Per the Zacks analyst, T-Mobile is well positioned to drive its business with increasing subscriber base on the back of coverage expansion and strong network performance, including 4G LTE speeds.

Asset Inflows, Acquisitions Support Invesco's (IVZ) Revenues

Per the Zacks analyst, decent asset under management inflows and inorganic growth strategy will support Invesco's revenues. Increasing global presence and strong balance sheet will aid profitability.

Acquisitions, Increasing Assets Bolster Legg Mason (LM)

Per the Zacks analyst, Legg Mason's strong liquidity position keeps it well poised to grow through acquisitions. Also, strategic acquisitions have aided in asset growth and expansion in market share.

New Downgrades

Carbohydrate Solutions Unit a Worry for Archer Daniels (ADM)

Per the Zacks analyst, softness in Archer Daniels' Carbohydrate Solutions segment is likely to continue. Pressure on European sweetener and issues related to the Decatur plant are major concerns.

Stiff Competition & Currency Headwinds Hurt Jacobs (JEC)

Low-entry barriers in engineering, consulting and designing market segments have escalated threats of market rivalry for Jacobs. Also, constant appreciation of the U.S. dollar have added to the woes.

Slowdown in China Operations a Major Concern for Mattel (MAT)

Per the Zacks analysts, Mattel's operations in China have been a drag in recent times. China operations have excessive retail inventory, which is detrimental to Mattel's profitability.n


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T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
 
Altria Group, Inc. (MO) : Free Stock Analysis Report
 
Eli Lilly and Company (LLY) : Free Stock Analysis Report
 
General Motors Company (GM) : Free Stock Analysis Report
 
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
 
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
 
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