Today's Must Read
Visa (V) Rides on Acquisitions, Technological Enhancement
Eli Lilly (LLY) Boasts a Solid Cancer & Alzheimer's Pipeline
Tuesday, June 29, 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 Alphabet (GOOGL), Visa (V), and Eli Lilly (LLY). 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 >>>
Shares of Alphabet have outperformed the S&P 500 in the year-to-date period (+39.8% vs. +15.8%). The Zacks analyst believes that expanding data centers will continue to bolster the company’s presence in the cloud space. Further, major updates in its search segment are enhancing the search results.
Moreover, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Also, the company’s growing efforts to gain a foothold in the healthcare industry are other positives. However, its growing litigation issues and increasing expenses remain concerns.
Visa’s shares have gained +7.7% over the last six months against the Zacks Financial Transaction Services industry’s gain of +2.5%. The Zacks analyst believes that numerous acquisitions and alliances have paved the way for long-term growth and consistently drove Visa’s revenues. It continues to invest in technology to further boost its already leading position in the payments market.
Further, the coronavirus vaccine development and the gradual revival of consumer confidence will drive spending, expanding business volumes in turn. However, high operating expenses stress the operating margins. Also, ramped-up client initiatives are likely to dent the top line.
Shares of Eli Lilly have gained +23.6% in the past three months against the Zacks Large Cap Pharmaceuticals industry’s gain of +9.6%. The Zacks analyst believes that Lilly’s revenue growth is being driven by higher demand for drugs like Trulicity, Taltz, among others.
The company’s pipeline assets for cancer, diabetes and Alzheimer's are likely to keep supporting its growth well beyond 2025. It also received rapid emergency approvals for COVID-19 antibody cocktail drugs. 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.
Other noteworthy reports we are featuring today include Amgen (AMGN), Intuit (INTU) and Sony Group (SONY).
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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>>>