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The Zacks Analyst Blog Highlights Eli Lilly, Linde, NextEra Energy, Honda Motor, Arthur J. Gallagher and Block

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For Immediate Release

Chicago, IL – January 19, 2024 – 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: Eli Lilly and Co. (LLY - Free Report) , Linde plc (LIN - Free Report) , NextEra Energy, Inc. (NEE - Free Report) , Honda Motor Co., Ltd. (HMC - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) and Block, Inc. (SQ - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

Top Analyst Reports for Eli Lilly, Linde and NextEra Energy

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 Co., Linde plc and NextEra Energy, Inc. 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 (+80.9% vs. +18.8%). The company boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Verzenio, Trulicity, Taltz and others. Sales of its new drug, Mounjaro are already benefiting from strong demand trends.

Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s. Mounjaro was recently approved for the obesity indication by the name of Zepbound. Mounjaro and Zepbound are expected to be key top-line drivers for Lilly. It has also gained approvals for some other new drugs in 2023.

However, generic competition for some drugs, rising pricing pressure and challenges in meeting strong demand for incretin products are some top-line headwinds.

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

Shares of Linde have outperformed the Zacks Chemical - Specialty industry over the past year (+27.1% vs. +21.5%). The company is making its world more productive by the day with a wide range of applications for its industrial gases. The company’s primary products in industrial gases include oxygen, which is used as life support in hospitals.

Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. In the profitable industrial gas market, the merger of Praxair and Linde has created an efficient player with considerable size advantages.

However, increasing competition for new projects in emerging markets is concerning. The company faces vulnerability due to economic growth slowdown, potentially impacting industrial gas demand. Linde's history of consistently offering lower dividend yields compared to the composite stocks belonging to the sector concerns income-oriented investors.

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

Shares of NextEra have underperformed the Zacks Utility - Electric Power industry over the past six months (-17.9% vs. -7.3%). Due to the nature of its business the company is subject to complex regulations. Risks in operating nuclear units, unfavorable weather conditions and increasing supply costs adversely impact earnings.

Nevertheless, NextEra Energy continues to expand its operations through organic projects and acquisitions. The company has many renewable projects in its backlog and continues to enhance its renewable energy generation capacity.

NextEra’s subsidiary FPL’s customer base is expanding as Florida’s economy improves. The company has ample liquidity to meet its near-term debt obligations. It is expanding its operations in the water space through acquisitions. NextEra Energy decided to sell its gas assets in Florida to focus on its core business.

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

Other noteworthy reports we are featuring today include Honda Motor Co., Ltd., Arthur J. Gallagher & Co. and Block, Inc.

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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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