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The Zacks Analyst Blog Highlights: Johnson & Johnson, Eli Lilly, PNC Financial, EOG Resources and Archer-Daniels-Midland

Zacks Equity Research

For Immediate Release

Chicago, IL – December 19, 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: Johnson & Johnson JNJ, Eli Lilly LLY, PNC Financial PNC, EOG Resources EOG and Archer-Daniels-Midland ADM.

Here are highlights from Wednesday’s Analyst Blog:

Top Stock Reports for Johnson & Johnson, Eli Lilly and PNC Financial

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 Johnson & Johnson, Eli Lilly and PNC Financial. 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 >>>

Johnson & Johnson’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry year to date (+11.2% vs. +10.2%). The Zacks analyst believes that J&J has been witnessing significant generic/biosimilar headwinds in the Pharma unit in 2019.

However, the unit is performing above-market levels, supported by contribution from new drugs like Tremfya and successful label expansion of cancer drugs like Imbruvica and Darzalex and immunology drug, Stelara. J&J is also making rapid progress with its pipeline/line extensions. It has already gained FDA approval for two new drugs in 2019, Balversa and Spravato.

Share buybacks and restructuring initiatives should provide bottom-line support. However, headwinds like biosimilar/generic competition and pricing pressure remain. Moreover, J&J faces numerous lawsuits, which allege personal injuries to patients caused by the use of its products.

Shares of Eli Lilly have gained 9.6% in the past three months against the Zacks Large Cap Pharmaceuticals industry’s rise of 11.1%. The Zacks analyst believes that Lilly’s revenue growth is being 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, rising competitive pressure on Lilly’s drugs, generic competition for several drugs including Cialis, rising pricing pressure in the United States, price cuts in some international markets, currency headwinds and the impact of the failed Lartruvo study are putting pressure on the top line.

PNC Financial's shares have gained +20.4% over the past six months against the Zacks Major Regional Banks industry's rise of +21.4%. The Zacks analyst believes that company's commitment to expand middle market lending franchise and expand its digital products and services offerings bodes well.

Shares of PNC Financial have outperformed the industry over the past three months. Also, it has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters.

Moreover, execution of inorganic strategies in order to diversify revenue sources is likely to continue bolstering fee income. Also, rising loans and deposits balance keep PNC Financial well poised for growth.

However, with growing business and investment in technology the company's expense base is expected to keep escalating, which poses a concern. Also, lack of diversification in loan portfolio is a headwind.

Other noteworthy reports we are featuring today include EOG Resources and Archer-Daniels-Midland.

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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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The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
 
Eli Lilly and Company (LLY) : Free Stock Analysis Report
 
Johnson & Johnson (JNJ) : Free Stock Analysis Report
 
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
 
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
 
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