Friday, February 2, 2024

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. (LLY), Danaher Corp. (DHR) and Citigroup Inc. (C). 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’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+96.7% vs. +25.7%). The company’s revenue growth is being driven by higher demand for drugs like Verzenio, Trulicity, Taltz and others. Sales of its new drug, Mounjaro, are benefiting from strong demand trends.

Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s disease. 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. The company 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. Estimates have declined slightly ahead of Q4 results. Lilly has a mixed record of earnings surprises in the recent quarters.

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

Shares of Danaher have outperformed the Zacks Diversified Operations industry over the past year (+3.3% vs. +2.4%). Stable demand in the academic and life science research markets is supporting Danaher’s Life Sciences segment. In the segment, the company has been witnessing positive responses toward its new products.

Its commitment to return value to shareholders is encouraging. Synergies from the Abcam acquisition bolster the company’s growth. Through its DBS initiatives, it has been able to reduce the impact of supply-chain constraints and inflationary pressures.

However, Danaher is plagued by weakness in the Biotechnology and Diagnostics segments due to a decrease in the sale of COVID-related products. The slowdown in the pharma and biopharma markets is an added concern. High debt levels, if not controlled, might raise the company's financial obligations and drain its profitability. Given its international exposure, forex woes are weighing on its top line.

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

Citigroup’s shares have outperformed the Zacks Banks - Major Regional industry over the past year (+13.9% vs. +6.3%). The company’s fourth-quarter results witnessed growth in total loans and deposits. It is undergoing an organizational overhaul, which is expected to simplify operations.

The company remains on track to exit the consumer banking business in international markets and focus on growth in wealth management and commercial banking.

High interest rates will continue to aid net interest income (NII), though rising funding costs will weigh on it. However, escalating expenses will likely limit bottom-line growth. Fee income volatility remains a major headwind.

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

Other noteworthy reports we are featuring today include Shopify Inc. (SHOP), Boston Scientific Corp. (BSX) and Canadian Pacific Kansas City Ltd. (CP).

Mark Vickery
Senior Editor

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>>>