Thursday, July 11, 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 Danaher Corporation (DHR), Morgan Stanley (MS) and Pfizer Inc. (PFE), as well as two micro-cap stocks, Elite Pharmaceuticals, Inc. (ELTP) and Oil-Dri Corporation of America (ODC).  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 >>>

Danaher shares have underperformed the Zacks Diversified Operations industry over the past year (+1.7% vs. +8.4%). The Zacks analyst believes that Danaher is plagued by weakness in the biotechnology unit due to decreased demand in the bioprocessing business. The company’s global presence also exposes it to forex woes.

Yet, business has been good in the life sciences segment and the Abcam acquisition have bolstered the company’s growth. Also, through Danaher’s DBS initiatives, it has been able to reduce the impact of supply-chain constraints and inflationary pressures.

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

Morgan Stanley’s shares have underperformed the Zacks Financial – Investment Bank industry over the past year (+20.6% vs. +31.8%). The Zacks analyst believes that uncertainty about the performance of the capital markets is a woe for the company and will likely hurt its Institutional Securities segment’s prospects. Rising costs are also likely to hurt its profitability.

However, resurgence of its investment banking business and a solid pipeline will aid financials. The new strategic alliance with Mitsubishi UFJ will bolster the company’s presence in Japan. Efforts to become less dependent on capital-markets-driven revenues, inorganic expansion and high rates will also benefit the company.

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

Shares of Pfizer have underperformed the Zacks Large Cap Pharmaceuticals industry over the last six months (-1.2% vs. +16.6%). Per the Zacks analyst, the company’s top line is declining due to a steep drop in revenues from its COVID-19 products. Concerns remain about its long-term growth drivers.

Yet, pipeline products like Vyndaqel and Prevnar, new launches like Abrysvo, Velsipity, Penbraya and newly acquired products, including those acquired from Seagen, are expected to drive the company’s growth in the near future.

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

Elite Pharmaceuticals’ shares have outperformed the Zacks Medical – Drugs industry over the past two years (+302.3% vs. -16.8%). The Zacks analyst believes that the successful commercial launch of the company’s Elite label product line, efficient cost management, robust product pipeline (including methotrexate), strategic partnerships, and financial prudence position it for sustained growth.

However, high inventory, DEA quota challenges, market competition and dependency on key products pose risks.

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

Oil-Dri’s shares have outperformed the Zacks Chemical – Diversified industry over the past two years (+91.0% vs. +3.0%). The Zacks analyst believes that the acquisition of Ultra Pet Company and product launches like Cat’s Pride Antibacterial Clumping Litter have benefited the company’s performance.

However, ODC's heavy reliance on Walmart for a significant portion of its sales makes its revenues vulnerable to volatility. Also, sales of agricultural and animal health products have been falling.

(You can read the full research report on Oil-Dri here >>>)

Other noteworthy reports we are featuring today include Sony Group Corporation (SONY), Intercontinental Exchange, Inc. (ICE) and Republic Services, Inc. (RSG).

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.