Today's Must Read
COVID-19 Test Sales, End Market Growth Aid Thermo Fisher (TMO)
Eli Lilly (LLY) Makes Significant Pipeline Progress
Wednesday, January 13, 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 Amazon (AMZN), Thermo Fisher Scientific (TMO) and Eli Lilly (LLY). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Amazon shares have outperformed the S&P 500 over the past year (+66.9% vs. +17.6%). The Zacks analyst believes that Amazon is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio.
Further, a coronavirus-led spike in online orders continues to be a major tailwind. Also, solid growth in its online stores sales remains a positive. A surge in online grocery shopping is another positive. Additionally, the strong adoption rate of AWS is aiding the company’s cloud dominance.
Moreover, expanding the AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. Further, improving Alexa skills and expanding smart home products portfolio are positives. However, accelerating coronavirus related expenses remain risks for the company’s margin expansion in the near term. Also, rising cloud competition poses risk.
Shares of Thermo Fisher have gained +28.7% in the last six months against the Zacks Medical Instruments industry’s gain of +18.1%. The Zacks analyst is optimistic about the exceptionally strong growth at Life Sciences Solutions and Specialty Diagnostics segments.
In terms of end market, pharma and biotech registered growth on robust performance in bioproduction and pharma services. In diagnostics and healthcare, the company experienced exceptionally high demand for COVID-19 testing. A strong capital structure looks encouraging.
The company’s third quarter results were better-than-expected. However, the coronavirus outbreak has massively disrupted the global supply chain. One of the end markets registered loss in the third quarter, largely due to customer shutdowns in China.
Eli Lilly’s shares have gained +20.5% over the past three months against the Zacks Large Cap Pharmaceuticals industry’s rise of +5.6%. The Zacks analyst believes that Lilly is making significant pipeline progress including its efforts to make therapies to treat COVID-19.
It is regularly adding promising new pipeline assets through business development deals. It expects revenue growth to be driven by higher demand for drugs like Trulicity, Taltz, and others.
However, generic competition for several drugs, rising pricing pressure in the United States mainly on key drug Trulicity, and price cuts in some international markets like China, Japan and Europe are some top-line headwinds. Estimates have gone up ahead of Q4 results. Lilly has a positive record of earnings surprises in the recent quarters.
Other noteworthy reports we are featuring today include Alphabet (GOOGL), Novo Nordisk (NVO) and CVS Health (CVS).
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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>>>