Friday, October 29, 2021

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 Inc. (GOOGL), Eli Lilly and Company (LLY), and Sony Group Corporation (SONY). 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 Alphabet have outperformed the S&P 500 over the past year (+81.5% vs. +44%), with the better-than-expected Q3 results adding to the stock's momentum. The Zacks analyst believes that its focus on innovation, strategic acquisitions and Android OS will continue to generate strong cash flow.

A robust cloud division and expanding data centers continue to strengthen its presence in the cloud space. The company also continues to benefit from major updates in its search segment to enhance search results. Alphabet’s efforts to improve AI techniques and its focus on the home automation space should is expected to aid business growth in the long term.

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

Eli Lilly shares have gained +52.6% in the year to date period against the Zacks Large Cap Pharmaceuticals industry’s gain of +16.5%. The Zacks analyst believes that Lilly has been benefiting significantly higher demand for drugs like Trulicity, Taltz, and others. An intriguing pipeline for cancer, diabetes and Alzheimer's drugs is another tailwind.

The company recently submitted regulatory applications for tirzepatide and donanemab to be used in treatments for type II diabetes and early Alzheimer's disease, respectively. Both these candidates possess sales potential worth billions of dollars. Generic competition for several drugs, pricing pressure in the United States, and price cuts in certain international markets including China, Japan and Europe remain as major headwinds though.

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

Shares of Sony have gained +14.9% over the past six months against the Zacks Audio Video Production industry’s gain of +13.3%. The Zacks analyst believes that its Electronics Products & Solutions segment has been benefiting from an increase in sales of televisions and digital cameras.

Sony raised its outlook for the fiscal year ending Mar 31, 2022. The company has been witnessing a surge in Game & Network Services, Pictures, Music, and Electronics Products & Solutions segments sales. The continued increase in cost of goods sold is a major concern for the company though. It has a strong international presence with a chunk of its revenues stemming from emerging markets; this makes its susceptible to fluctuations in foreign currency exchange rates.

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

Other noteworthy reports we are featuring today include American Express Company (AXP), Norfolk Southern Corporation (NSC) and The Southern Company (SO).

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>>>