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The Zacks Analyst Blog Highlights: Alphabet, Eli Lilly, CVS, Marriott and TELUS

Zacks Equity Research

For Immediate Release

Chicago, IL –May 15, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alphabet GOOGL, Eli Lilly LLY, CVS Health CVS, Marriott MAR and TELUS TU.

Here are highlights from Tuesday’s Analyst Blog:

Top Research Reports for Alphabet, Eli Lilly and CVS

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 Alphabet, Eli Lilly and CVS Health. 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 >>>

Alphabet’s shares have gained +4.8% in the past one year, outperforming the Zacks Internet Services industry's decline of -7.9%. Alphabet reported weak revenues in the first quarter due to increasing competition in the advertising business, currency fluctuations and a few changes in YouTube ads.

However, the Zacks analyst thinks strong initiatives toward elimination of bad ads and introducing useful major search updates are acting as tailwinds. Further, Google’s robust mobile search is also a major positive.

Additionally, its strong focus toward bolstering presence in the cloud market on the back of expanding data centers and robust cloud offerings continues to aid growth. Google’s strong focus on the innovation of its AI techniques and home automation space is aiding its business growth. However, the company’s growing litigation issues and increased spending on YouTube and consumer gadgets might hurt its profitability.

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

Shares of Eli Lilly have gained +39.1% in the past year, significantly outperforming the Zacks Large Cap Pharmaceuticals industry, which has gained +6% over the same period. Lilly beat estimates for earnings in the first quarter. However, Lilly lowered its sales guidance for 2019. 

The Zacks analyst thinks revenue growth in 2019 will likely be driven by higher demand for its newer drugs including Trulicity, Jardiance, Taltz, Verzenio and new migraine drug, Emgality as some older drugs like Cialis face generic competition. Lilly has made significant pipeline progress in the past year with several positive late-stage data readouts, multiple approvals and regulatory submissions. Lilly also added promising new pipeline assets through business development deals.

However, competitive pressure on Lilly’s drugs is expected to rise in 2019. 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.

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

CVS Health’s shares have outperformed the Zacks Retail Pharmacies and Drug Stores industry in the past three months, losing -22.6% versus -24.6%. CVS Health ended first quarter 2019 on a promising note with both earnings and revenues trumping expectations.

Year-over-year growth in the top line was driven by a strong Pharmacy Services segment, benefiting from the upside in the specialty services. The Zacks analyst thinks that although the company is witnessing certain challenges related to 2020 PBM selling season, the long-term prospects look bright. This apart, Aetna integration synergy looks promising.

Following this, CVS Health introduced a new segment-Health Care Benefits which holds immense promise. On the flip side, during the first quarter, persistent reimbursement pressure and the impact of recent generic introductions dented the company’s retail LTC business growth. Also, Omnicare business performance should continue to remain soft through 2019 impacting CVS' pharmacy services arm.

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

Other noteworthy reports we are featuring today include Marriott and TELUS.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
TELUS Corporation (TU) : Free Stock Analysis Report
Marriott International (MAR) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
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