Tuesday, February 27, 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), The Procter & Gamble Co. (PG) and Morgan Stanley (MS). 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 (+150.1% vs. +37.0%). The company’s revenue growth is being driven by higher demand for drugs like Mounjaro, Verzenio, Jardiance Taltz and others.

Lilly’s new FDA-approved tirzepatide medicines, diabetes drug Mounjaro and newly launched weight loss medicine, Zepbound, are expected to be key top-line drivers. Lilly has also launched some other new products recently like Omvoh and Jaypirca. These new products are expected to drive Lilly’s top line in 2024.

Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s. However, generic competition for some drugs, rising pricing pressure and challenges in meeting strong demand for incretin products like Trulicity are some top-line headwinds.

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

Shares of Procter & Gamble have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+19.4% vs. +15.9%). The company has been gaining from robust pricing and a favorable mix, along with strength across segments.

Procter & Gamble has been focused on productivity and cost-saving plans to boost margins. This led to the top and bottom lines beating the consensus mark for the fifth consecutive quarter in the first quarter of fiscal 2024. Consequently, PG has provided an optimistic fiscal 2024 view.

However, the company has been witnessing supply-chain issues, higher SG&A costs, higher transportation costs and rising inflation. Its significant international presence exposes it to foreign currency risks, which acts as a headwind.

(You can read the full research report on Procter & Gamble here >>>)

Morgan Stanley’s shares have gained +3.7% over the past six months versus the Zacks Financial - Investment Bank industry’s gain of +13.3%. The company's new strategic alliance with Mitsubishi UFJ will bolster its presence in Japan. Further, the company’s initiatives to become less dependent on capital-markets-driven revenue sources, inorganic growth efforts and high interest rates will support the top line.

However, the ambiguity of the performance of the capital markets is a woe and is expected to hurt the Institutional Securities segment’s prospects. Elevated operating expenses due to inflation and the company's investments in franchise are likely to hamper profitability.

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

Other noteworthy reports we are featuring today include SAP SE (SAP), AT&T Inc. (T) and Medtronic plc (MDT).

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>>>