Friday, February 11, 2022
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
), Union Pacific Corporation (
UNP
), and Freeport-McMoRan Inc. (
FCX
). 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 >>>
Shares of
Eli Lilly
have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+16.8% vs. +18.9%), with favorable demand trends for drugs like Trulicity and Taltz expected to help drive Lilly’s outperformance.
Eli Lilly recently submitted regulatory applications for tirzepatide for type II diabetes and donanemab for early Alzheimer’s disease, both of which have multibillion dollar sales potential. It is regularly adding promising new pipeline assets through business development deals. Generic competition for several drugs and rising pricing pressure, however, remain as the major top-line headwinds.
(You can
read the full research report on Eli Lilly here >>>
)
Union Pacific
shares have gained +7.4% in the past six months against the Zacks Rail industry’s rise of +5.7%. The Zacks analyst is impressed with Union Pacific’s efforts to reward its shareholders even in the current uncertain times.
In December 2021, UNP’s board announced a 10% hike in its quarterly dividend to $1.18 per share. Union Pacific’s strong free cash flow generating ability has been supporting its shareholder-friendly activities. An escalation in fuel costs due to rising oil prices, however, have led to 7% rise in operating expenses. Union Pacific cut its 2021 volume growth outlook due to supply-chain woes.
(You can
read the full research report on Union Pacific here >>>
)
Shares of
Freeport-McMoRan
have gained +6.9% in the last three months against the Zacks Mining – Non Ferrous industry’s loss of –8.3%. The Zacks analyst believes that Freeport’s initiatives to reduce debt will boost its financial position.
Freeport is also conducting exploration activities near its existing mines with a focus to expand reserves that will support additional future production capacity. FCX is well-positioned to benefit from automotive electrification, which is positive for copper as electrical vehicles are copper intensive. Higher copper prices are also expected to support margins. FCX’s margins are likely to be further supported by lower interest rates.
(You can
read the full research report on Freeport-McMoRan here >>>
)
Other noteworthy reports we are featuring today include Sanofi (
SNY
), Boston Scientific Corporation (
BSX
) and Marriott International, Inc. (
MAR
).
Sheraz Mian
Director of Research
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
Eli Lilly (LLY) Boasts Solid Diabetes & Alzheimer’s Pipeline
Dividends & Buybacks Save Union Pacific (UNP), Costs Sting
Exploration Progress, Debt Reduction to Aid Freeport (FCX)
Featured Reports
Sanofi (SNY) Boasts a Solid & Expanding Pipeline
The Zacks analyst believes Sanofi’s R&D pipeline is strong. It has launched several new drugs in the past couple of years and is expanding its pipeline through M&A deals.
Boston Scientific’s (BSX) MedSurg Arm Grows Amid Cost Woes
The Zacks analyst is optimistic about robust organic sales growth within Boston Scientific’s MedSurg business. Yet, rising operating expenses place significant pressure on the company’s bottom line.
Expansion Efforts to Aid Marriott (MAR), RevPAR Dismal
Per the Zacks analyst, a solid expansion spree along with a strong brand position continues to benefit Marriott. However, RevPAR and occupancy woes stay.
MercadoLibre (MELI) Gains From Total Payment Volume Growth
Per the Zacks analyst, MercadoLibre benefits from solid total payment volume growth which is driven by strong momentum across Mercado Pago and mobile-point-of-sale business.
Investments Aid American Electric (AEP), Weak Solvency Woes
Per the Zacks analyst, American Electric’s hefty investments offer a stable earnings base and tend to boost its long-term growth potential.
Exelon (EXC) Business Separation & Regulated Investment Aid
Per the Zacks analyst, separation of Constellation Energy will allow Exelon to focus on transmission & distribution operations.
Equity Residential (EQR) to Gain from Improving Rental Demand
Per the Zacks analyst, Equity Residential is well poised to benefit from a diversified portfolio and improve demand for apartment living.
New Upgrades
Cenovus (CVE) to Gain From Alberta Tucker Asset Divestment
The Zacks analyst is upbeat about Cenovus’ divestment of the Tucker thermal asset in Alberta, which will help reduce the debt burden and improve the company’s ability to raise shareholder returns.
Lower Costs, Solid Balance Sheet Aid Virtu Financial (VIRT)
Per the Zacks analyst, the company has been gaining substantially from declining expenses. Moreover, its solvency position with reducing debt level also impresses.
Knowles (KN) to Gain From Increasing Demand for Microphones
Per the Zacks analyst, Knowles is poised to benefit from the growing demand for its micro-electro-mechanical system microphones along with differentiated solutions for a diverse set of end markets.
New Downgrades
Allstate (ALL) Increased Cat Loss & Elevated Debt Level Ail
Per the Zacks analyst, exposure to catastrophic events continues to dent Allstate’s underwriting profitability. Rising debt remains a concern as it results in escalated interest expenses.
Higher Production Costs Hurt Lionsgate’s (LGF.A) Prospects
Per the Zacks analyst, Lionsgate is suffering from higher movie production costs. A leveraged balance sheet is a concern.
High Capital Expenses Weigh on Air Transport Services (ATSG)
The Zacks analyst is concerned about the company’s escalating capital expenditures, primarily due to hefty investments in the purchase of aircraft as well as freighter modification.
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