Monday, December 9, 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 Company (LLY), AbbVie Inc. (ABBV) and Gilead Sciences, Inc. (GILD), as well as two micro-cap stocks, Air T, Inc. (AIRT) and Fossil Group, Inc. (FOSL). These research reports have been hand-picked from 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 (+41.5% vs. +12.8%), reflecting the strong demand for Mounjaro and Zepbound. The company has received approvals for several new drugs like Kisunla, Omvoh and Jaypirca. Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s.

However, declining sales of Trulicity is a major headwind..

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

AbbVie shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past two years (+6.6% vs. +17.7%). The Zacks analyst believes that the company faces several near-term headwinds like Humira’s biosimilar erosion, increasing competitive pressure on Imbruvica and slow market growth trend for Juvederm fillers in the United States and China.

Yet, Skyrizi and Rinvoq are performing extremely well, bolstered by approvals in new indications, which should support top-line growth in the next few years. AbbVie has several early/mid-stage candidates that have the potential to drive long-term growth.

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

Shares of Gilead Sciences have outperformed the Zacks  Medical – Biomedical and Genetics industry over the last six months (+41.2% vs. -1.8%). Per the Zacks analyst, the company’s efforts to develop better HIV treatments are commendable. Lenacapavir’s data readout impresses investors. Substantial growth in Yescarta and Tecartus, along with the strong uptake of Trodelvy, has strengthened its oncology franchise.

However, recent pipeline setbacks weigh on Gilead.

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

Air T’s shares have outperformed the Zacks Transportation – Air Freight and Cargo  industry over the past year (+34.1% vs. -11.6%). The Zacks analyst believes that the company’s overnight Air Cargo segment, primarily serving FedEx, is a major growth driver, aided by fleet expansion and stable demand. Its asset-light model lowers operational risk. Strength in air cargo and commercial jet engines and parts and a sole-source deicer supply contract with the U.S. Air Force aid.

Yet, rising operating losses, inventory write-downs, high debt and a shrinking order backlog in Ground Equipment Sales signal challenges and potential pressure on future performance. Joint ventures (JVs) in aircraft asset management offer upside potential. Key customer dependence and seasonal risks add to concerns.

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

Fossil Group’s shares have outperformed the Zacks Retail – Apparel and Shoes  industry over the past year (+61.5% vs. +39.5%). The Zacks analyst believes that SKU rationalization, pricing adjustments and exiting the lower-margin smartwatch category under the TAG Plan have benefited the company. Strategic exits from the smartwatch category and store closures have optimized operations, contributing to gross margin gains.

Yet, declining net sales due to strategic shifts, pressure on licensed watch brands and high debt levels present ongoing challenges.

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

Other noteworthy reports we are featuring today include Intel Corporation (INTC), Marvell Technology, Inc. (MRVL) and Coinbase Global, Inc. (COIN).

Director of Research

Sheraz Mian

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>>>