Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Eli Lilly, Altria, Becton, Dickinson, T-Mobile and General Motors

Read MoreHide Full Article

For Immediate Release

Chicago, IL – April 11, 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: Eli Lilly (LLY - Free Report) , Altria (MO - Free Report) , Becton, Dickinson (BDX - Free Report) , T-Mobile (TMUS - Free Report) and General Motors (GM - Free Report) .

Here are highlights from Wednesday’s Analyst Blog:

Top Stock Reports for Eli Lilly, Altria and Becton, Dickinson

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, Altria and Becton, Dickinson. 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 >>>

Buy rankedEli Lily's shares have outperformed the Zacks Large Cap Pharmaceuticals industry year to date, gaining +10% vs. +1.9%. The Zacks analyst thinks Lilly’s revenue growth in 2019 will likely be driven by higher demand for its newer drugs including Trulicity, Jardiance, Taltz, Verzenio as well as new migraine drug, Emgality as some older drugs like Cialis face generic competition.

In 2018, Lilly made significant pipeline progress with several positive late-stage data readouts, multiple approvals and regulatory submissions. Emgality could emerge as a significant contributor to long-term growth. Lilly has also added promising new pipeline assets through business development deals.

However, generic competition for several drugs including Cialis, rising pricing pressure, currency headwinds and the impact of the failed Lartruvo study are expected to put pressure on the top line. Estimates have gone up ahead of Q1 results. Lilly has a positive record of earnings surprises in recent quarters.

Shares of Altria have underperformed the Zacks Tobacco industry over the past three months (+12.7% vs. +19.8%). The Zacks analyst thinks the company has been steadily gaining from the popularity of Smokeless products. To further bolster this category, the company recently invested in JUUL and Cronos. Altria has also applied for converting its non-voting interests in JUUL to voting securities.

Pricing also continues to drive the company’s revenues. It has also undertaken cost-reduction initiatives to counter interest burden. Altria plans to deliver annualized cost savings of nearly $575 million by the end of 2019. However, the company grapples with persistently declining cigarette shipment volumes. Stern FDA regulations combined with increased health consciousness are taking a toll on the cigarette category.

Going forward, management expects cigarette industry volume to decline in the range of 3.5-5%. Further, the company’s wine category has been sluggish, thanks to stiff competition.

Becton, Dickinson’s shares have outperformed the Zacks Dental Supplies industry over the past year, gaining +12.5% vs. +1.5%. The Zacks analyst likes the solid performance by the core BD Medical and Life Sciences units. Domestic and international revenues increased year over year in recent times.

Management is optimistic about the C.R. Bard buyout which has consistently proven to be accretive. Notably, a series of product launches and regulatory approvals in recent times continue to boost the stock. The company has kept its fiscal 2019 guidance intact.

On the flip side, contraction in gross and operating margins in recent times is worrisome. Customer ordering patterns are also expected to negatively impact fiscal second-quarter results. Management expects unfavorable foreign currency to remain headwinds in fiscal 2019. Stiff price competition in the MedTech space adds to its woes.

Other noteworthy reports we are featuring today include T-Mobile and General Motors.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                   

http://www.zacks.com                                                 

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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Published in