Friday, July 15, 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), Thermo Fisher Scientific Inc. (TMO), and TotalEnergies SE (TTE). 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
shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+42.6% vs. +17.7%) on the back of a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Lilly’s revenue growth is being driven drugs like Trulicity, Taltz, and others.
It is regularly adding promising new pipeline assets through business development deals. It has an exciting pipeline of potential new medicines including tirzepatide for type II diabetes and donanemab for early Alzheimer’s disease. Both candidates have multibillion-dollar sales potential.
However, 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 some top-line headwinds.
(You can
read the full research report on Eli Lilly here >>>
)
Thermo Fisher
shares have outperformed the Zacks Medical – Instruments industry over the past year (+1.4% vs. -25.8%). This reflects the favorable grwoth outlook for the company’s in the Analytical Instruments and the Laboratory Products and Biopharma Services segments.
The company’s strategic acquisitions of PPD, Inc. and PeproTech raise investors’ confidence. Thermo Fisher’s accelerated investments to expand bioproduction capacity also buoy optimism. The upbeat guidance for 2022 is indicative that this growth momentum will continue.
However, the year-over-year decline in revenues in the Specialty Diagnostics segment is disappointing. The contraction of both margins does not bode well either.
(You can
read the full research report on Thermo Fisher here >>>
)
TotalEnergies
shares have gained +13.8% over the past year against the Zacks Oil and Gas – Refining and Marketing industry’s gain of +36.4%. The company is gaining from new startups, an increase in commodity prices, well-spread LNG assets, and an expanding upstream portfolio that has exposure to fast-growing hydrocarbon-producing regions.
TTE streamlines its portfolio through acquisitions, partnerships and divestitures. It is making regular investments to expand the renewable operation and aims to achieve net-zero emissions by 2050. TTE has enough liquidity to meet debt obligations.
However, TTE’s profitability is likely to have been impacted by natural decline in the oil and natural gas fields. TTE remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. TTE has operations in some politically-troubled regions and the ongoing Russia and Ukraine conflict might affect profitability.
(You can
read the full research report on TotalEnergies here >>>
)
Other noteworthy reports we are featuring today include Amgen Inc. (AMGN), Prologis, Inc. (PLD), and Marathon Petroleum Corporation (MPC).
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
Lilly (LLY) Boosts Pipeline with Collaboration Deals
Thermo Fisher (TMO) Grows Internationally Amid Forex Woes
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Featured Reports
Amgen (AMGN) Rapidly Advancing Pipeline Development
The Zacks analyst says that Amgen is rapidly advancing its robust pipeline of early and late-stage assets. Several phase III readouts are due in 2022.
E-commerce Adoption, High Inventory to Aid Prologis (PLD)
Per the Zacks analyst, the fast adoption of e-commerce and high inventory levels will drive demand for Prologis’ facilities in key markets. Yet, rising supply will partly limit the growth tempo.
End-Market Strength to Aid ABB Amid Supply Chain Constraints
Per the Zacks analyst, ABB is poised to benefit from strength across its end-markets and strong market presence. However, delays in customer deliveries due to supply chain woes are worrisome.
Marathon (MPC) Gains from Sale of Speedway Retail Unit
The Zacks analyst likes Marathon’s sale of Speedway business, which provided a much-needed cash infusion and came with a supply agreement ensuring a steady revenue stream.
C.H. Robinson (CHRW) Benefits From Better Freight Scene
The Zacks Analyst believes that with improved freight market conditions, C.H. Robinson is benefiting from higher pricing and volumes across most of its service lines.
Rising Investment Income Aid Owl Rock (ORCC), High Costs Ail
Per the Zacks analyst, its revenues are driven by high investment income, thanks to improved interest income. However, escalating expenses continue to strain margins.
Cadence (CDNS) Benefits from Diversified Product Portfolio
Per the Zacks analyst, Cadence’s performance is gaining from solid demand for the company’s diversified product portfolio. Supply chain woes and stiff competition remain concerns.
New Upgrades
Seagen’s (SGEN) Robust Portfolio To Drive Top-Line
Per the Zacks Analyst, solid performance of its four approved products have fueled growth for Seagen and should boost the top-line further. The company’s pipeline progress has been encouraging as well
Growing Electronic Warfare Systems Demand Aid Mercury (MRCY)
Per the Zacks Analyst, high demand for electronic warfare, increased upgrades on electronic subsystems and continued flow of deals are aiding Mercury Systems’ growth.
TopBuild (BLD) Banks on Inorganic Move, Cost Cutting Strategy
Per the Zacks analyst, TopBuild’s systematic inorganic strategy has been supplementing organic growth, and expanding access to additional markets and products.
New Downgrades
Low Iron Ore Prices, High Input Costs to Hurt Vale (VALE)
The Zacks Analyst is worried that Vale’s top-line performance will reflect the recent downtrend in iron ore prices due to weak demand in China. Also, higher input costs might hurt its margins.
Strained Margins Concern Bed Bath & Beyond (BBBY) Investors
Per the Zacks analyst, Bed Bath & Beyond has been witnessing headwinds related to ongoing supply-chain constraints, rising inflation and higher inventory. This has been hurting the company’s margins.
Higher Costs, Geopolitical Woes Hurt Moelis & Company (MC)
Per the Zacks analyst, elevated costs due to Moelis & Company’s hiring spree and rising inflation will hurt profits. Geopolitical and macroeconomic concerns add to ambiguity in the operating backdrop.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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