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The Zacks Analyst Blog Highlights: Netflix, Eli Lilly, United Parcel Service, Microsoft and Nike

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For Immediate Release

Chicago, IL – February 6, 2020 – 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 Netflix NFLX, Eli Lilly LLY, United Parcel Service UPS, Microsoft (MSFT - Free Report) and Nike NKE.

Here are highlights from Wednesday’s Analyst Blog:

Top Research Reports for Netflix, Eli Lilly and UPS

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 Netflix, Eli Lilly and United Parcel Service. 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 >>>

Netflix’s shares have underperformed the Zacks Broadcast Radio and Television industry over the past year (+4.8% vs. +7.8%). The Zacks analyst believes that Netflix’s fourth-quarter 2019 subscriber addition rate declined in the United States, primarily due to price hike and stiff competition.

However, in international streaming markets, Netflix’s subscriber growth continued unabated, driven by a solid content portfolio. Moreover, the launch of low-priced mobile plans in India, Indonesia and Malaysia is expected to expand the subscriber base in the Asia Pacific. However, management expects net additions in the paid subscriber base to decline in first-quarter 2020.

Moreover, high streaming content obligation and increased spending are expected to hurt free cash flow generation. Nevertheless, a solid content portfolio and expanding bundle offerings through partnerships with telcos bode well for Netflix. 

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

Shares of Eli Lilly have gained +28.8% in the past six months against the Zacks Large Cap Pharmaceuticals industry's rise of +15.1%. The Zacks analyst believes that in 2020, Lilly’s revenue growth is expected to be driven by higher demand for newer drugs including Trulicity, Jardiance, Taltz, Verzenio, Basaglar, Emgality as well as newly launched Baqsimi and Reyvow.

Lilly is making significant pipeline progress with several positive late-stage data readouts scheduled for 2020. Lilly is also regularly adding promising new pipeline assets through business development deals.

However, generic competition for several drugs including the expected generic entry of Forteo, rising pricing pressure in the United States and price cuts in some international markets are some top-line headwinds expected in 2020.

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

United Parcel Service’s shares have lost -15.2% over the past three months against the Zacks Transportation - Air Freight and Cargo industry's fall of -13.4%. The Zacks analyst believes that UPS' fourth-quarter 2019 performance was boosted by volume growth in the U.S. Domestic segment, its main revenue-generating unit.

Notably, segmental revenues increased 6.6% in 2019. E-commerce growth is a huge positive for UPS. We are also impressed by the company's efforts to reward its shareholders through dividends ($3.3 billion in 2019) and buybacks ($1 billion). However, UPS' high capital expenditures might play spoilsport.

Notably, 2020 capex is expected to be higher than 2019 levels. The same is expected to dent 2020 earnings per share by roughly 33 cents. The company's high debts add to its woes.

(You can read the full research report on United Parcel Service here >>>)

Other noteworthy reports we are featuring today include Microsoft and Nike.

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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 for information about the performance numbers displayed in this press release.

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