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Research Daily

Mark Vickery

Top Analyst Reports for Eli Lilly, Honeywell International & American Express


Trades from $3

Thursday, March 23, 2023

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), Honeywell International Inc. (HON) and American Express Co. (AXP). 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 (+16.4% vs. +1.8%). The company boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Trulicity, Taltz and others.

It is regularly adding promising new pipeline assets through business development deals. Lilly expects to launch four new medicines by 2023 end, with Mounjaro for type II diabetes already launched and cancer drug Jaypirca already approved. Mounjaro is off to a solid start.

However, the CRL for donanemab will probably delay the potential launch of the candidate. Generic competition for several drugs, rising pricing pressure in the U.S. and some international markets are some top-line headwinds.

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

Shares of Honeywell International have outperformed the Zacks Diversified Operations industry over the past six months (+10.1% vs. +3.4%). Due to a recovery in commercial flight hours, strength in its advanced materials business and improvement in process technologies augur well for the company’s growth.

Pricing actions and cost-control measures continue to drive the company’s top line. The company’s bullish forecast for 2023 holds promise. Efforts to handsomely reward shareholders with dividends and share buybacks are attractive, as well.

However, volume softness due to supply-chain disruptions, especially semiconductor and parts shortages, is concerning. Weakness in the Safety and Productivity Solutions unit, due to lower personal protective equipment and warehouse automation volumes, is also worrisome. Raw material cost inflation and adverse foreign currency movements are other headwinds.

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

Shares of American Express have outperformed the Zacks Financial - Miscellaneous Services industry over the past six months (+18.5% vs. +3.6%). The company has adopted several growth initiatives, such as launching new products, enhancing existing features, reaching new agreements and forging alliances to boost revenues.

The Zacks analyst expects the top line to grow 15% year over year in 2023. Consumer spending on travel and entertainment, which carry higher margins for AmEx, is advancing well. Its balance sheet looks strong with manageable debt. Solid cash-generation abilities enable the pursuit of business investments and capital deployment.

However, with higher utilization of the company’s cards, expenses in card member services and rewards is likely to go up and dent the company's margins. Also, marketing and business development expenses are expected to rise. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include Lowe's Companies, Inc. (LOW), Altria Group, Inc. (MO) and Airbnb, Inc. (ABNB).

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>>>

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