Friday, May 31, 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), T-Mobile US, Inc. (TMUS) and BHP Group Limited (BHP). 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 shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+41.5% vs. +15.9%). The company boasts a solid portfolio of core drugs for diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Mounjaro, Verzenio, Jardiance, Taltz and others.

Lilly’s new tirzepatide medicines, diabetes drug Mounjaro and obesity medicine, Zepbound, are seeing exceptionally strong demand trends. Lilly has also launched some other new products like Omvoh and Jaypirca. Mounjaro, Zepbound and other new products are expected to drive Lilly’s top line in 2024. Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s.

However, generic competition for some drugs, rising pricing pressure and challenges in meeting strong demand for incretin products like Zepbound and Mounjaro are some top-line headwinds.

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

Shares of T-Mobile have outperformed the Zacks Wireless National industry over the past year (+23.7% vs. +21.3%). The company continues to boast a leadership position in the 5G market. It's 5G network covers 98% of Americans, or around 330 million people in the country.

T-Mobile inked a definitive agreement to acquire U.S. Cellular’s wireless operations, along with 30% of its spectrum assets. The transaction is likely to facilitate a competitive market with increased options and enable T-Mobile to expand its fast-growing home broadband and fixed wireless offerings. Healthy demand for postpaid services is a tailwind.

However, the highly competitive and saturated U.S. telecom market lowers its growth potential. The residual value of the surrendered phones, which the companies look to sell in other markets, may induce liquidity risk if the plan falls apart. The rising debt burden negatively impacts investors' confidence.

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

BHP shares have gained +11.7% over the past year against the Zacks Mining - Miscellaneous industry’s gain of +21.9%. The company can witness potential rebound in iron ore prices driven by infrastructure demand in the United States and the automotive sector.  The demand for electric vehicles is expected to support copper and nickel prices.

BHP’s investment in projects focused on future-facing commodities like copper, nickel and potash will aid growth. Its efforts to improve operational efficiency through technology will also continue to boost margins.

However, BHP’s fiscal 2024 iron ore production guidance is 254-264.5 Mt, indicating 1% year-over-year growth at the midpoint. Copper production is expected to grow 5.7% to 1,720-1,910 kt, while nickel is projected to increase 2.5% to 77-87 kt. Iron ore prices have been on a downtrend recently due to weaker-than-expected demand in China. The contraction in the manufacturing sector has weighed on copper prices.

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

Other noteworthy reports we are featuring today include American International Group, Inc. (AIG), HP Inc. (HPQ) and Exelon Corporation (EXC).

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>>>