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The Zacks Analyst Blog Highlights: Verizon, Eli Lilly, Accenture, VMware and Schwab

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For Immediate Release

Chicago, IL –December 5, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Verizon (VZ - Free Report) , Eli Lilly (LLY - Free Report) , Accenture (ACN - Free Report) , VMware and Schwab (SCHW - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Top Stock Reports for Verizon, Eli Lilly and Accenture

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 Verizon, Eli Lilly and Accenture. 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 >>>

Verizon’s shares have gained 14.2% over the past year, outperforming the Zacks Wireless National industry’s increase of 1% during the same period. The Zacks analyst thinks Verizon remains poised to benefit from the upcoming 5G boom led by healthy traction in the wireless business.

Verizon is further seeking a first mover advantage in the 5G race as it plans to launch commercial 5G smartphones in the market in the first half of 2019 in collaboration with Samsung. Focus on online content delivery, mobile video and online advertising should also drive growth.

However, the company continues to struggle in a highly competitive and saturated wireless market, where spectrum crunch has become a major issue, reducing its profitability to some extent. Verizon continues to face softer wireline revenues and margins due to technology shifts and ongoing secular pressures from legacy technologies. In an effort to expand its customer base, Verizon is spending heavily on promotion and is also offering lucrative discounts, which is further weighing on margins.

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

Shares of Eli Lilly have outperformed the Zacks Large-Cap Pharmaceuticals industry year to date (+40.4% vs. +10.4%). The Zacks analyst thinks Lilly’s new products like Trulicity, Taltz, Basaglar, Cyramza, Jardiance, Lartruvo and Verzenio will drive revenues. Lilly expects to launch 20 new products by 2023, including at least two new indications/line extensions on average every year.

Lilly is also having a strong year in terms of its pipeline with several positive late-stage data readouts and regulatory nods. The newly launched CGRP antibody, Emgality could emerge as a significant contributor to long-term growth. It has also added promising new assets through business development deals.

However, competitive pressure on Lilly’s drugs is expected to rise this year. Challenges remain for the company in the form of generic competition for several drugs including Cialis and rising pricing pressure in the diabetes franchise.

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

Accenture’s shares have underperformed the Zacks Consulting industry in the past year, gaining +13% vs. +15.3%. Accenture has been steadily gaining traction in its outsourcing business. The Zacks analyst thinks acquisitions have been a key growth catalyst and will contribute significantly to the company's revenue stream.

Accenture has been strategically enhancing its cloud and digital marketing suite through acquisitions and partnerships. The company’s strong operating cash flow has helped it reward its shareholders in the form of dividends and share repurchases.

Despite such tailwinds, Accenture faces stiff competition from strong companies like Genpact Limited, Cognizant Technology Solutions and Infosys. This leads to increasing pricing pressure for the company. Buyout-related integration risks can impact the company’s organic growth. Global presence exposes Accenture to foreign currency exchange rate fluctuations.

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

Other noteworthy reports we are featuring today include VMware and Schwab.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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