Tuesday, November 19, 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 Co. (LLY), PepsiCo, Inc. (PEP) and Morgan Stanley (MS). 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 last two years (+101.3% vs. +16.6%). The Zacks analyst believes that the company has seen unparalleled success with its GLP-1 drugs, Mounjaro and Zepbound. In the past couple of years, Lilly has received approvals for several new drugs and witnessed pipeline and regulatory success.

However, declining sales of Trulicity, rising pricing pressure on some drugs and potential competition in the GLP-1 diabetes/obesity market are some top-line headwinds.

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

PepsiCo’s shares have underperformed the Zacks Beverages – Soft drinks industry over the past year (-4.9% vs. +4.0%). The Zacks analyst believes that largely due to challenges in its North American operations since the start of 2024 that includes reduced consumer demand and product recalls in the QFNA segment, the company has underperformed over the past year. Additionally, adverse currency rates continue to pose challenges.

Yet, it is well-poised to benefit from strength and resilience in core categories, diversified portfolio, modernized supply chain, improved digital capabilities and flexible go-to-market distribution systems. The company's international business continues to hallmark its overall performance.

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

Shares of Morgan Stanley have outperformed the Zacks Financial - Investment Bank industry over the last six months (+33.4% vs. +22.8%). Per the Zacks analyst, a gradual revival in the investment banking (IB) business and a solid IB pipeline are expected to support its financials. Efforts to become less dependent on capital-markets-driven revenues, inorganic expansion/strategic alliance and high rates will also aid the top line.

However, operating expenses are likely to stay elevated amid business expansion efforts. The ambiguity of the performance of the capital markets is a concern and might hurt the Institutional Securities segment’s prospects.

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

Other noteworthy reports we are featuring today include Alibaba Group Holding Ltd. (BABA), The Walt Disney Co. (DIS) and Trane Technologies plc (TT).

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>>>