Monday, August 26, 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), Chevron Corporation (CVX) and Abbott Laboratories (ABT), as well as a micro-cap stocks Bridger Aerospace Group Holdings, Inc. (BAER).  The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 were hit hard during the recent market turmoil, but they have recouped all of their losses by now. On a year-to-date basis, Eli Lilly shares are up +63.9% vs. +29.3% for the large-cap pharma industry. Driving Eli Lilly's momentum is the company’s weight loss drug and a track record of strong quarterly results.

Eli Lilly has seen unparalleled success with its GLP-1 drugs, Mounjaro and Zepbound. Despite a short time on the market, they have become key top-line drivers, with demand rising rapidly. In the past couple of years, it has received approvals for several new drugs like Kisunla, Omvoh and Jaypirca and witnessed pipeline and regulatory success. Its new drugs have been contributing significantly to its top-line growth in 2024. Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s. 

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 >>>)

Shares of Chevron have gained +0.2% over the past six months against the Zacks Oil and Gas - Integrated - International industry’s gain of +7.2%. The company is grappling with high sensitivity to oil price fluctuations and relatively expensive valuation. Another concern is the sub-100% reserve replacement ratio, indicating challenges in replenishing produced energy. Considering all these factors, investors are advised to wait for a better entry point.

Nevertheless, Chevron is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin. Further, the planned acquisition of Hess Corporation is expected to significantly strengthen Chevron's presence in oil-rich Guyana.

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

Abbott shares have gained +11.6% over the past year against the Zacks Medical - Products industry’s gain of +15.6%. The company’s pipeline is generating several new growth prospects, which will help sustain the positive momentum and contribute to the strong growth projection in 2024. 

Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business. EPD's impressive performance stems from the company’s unique business model. The company is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales, beginning 2025. 

Freestyle Libre CGM device is also on a great trajectory. Within Nutrition, after a period of hiccups, Abbott has finally reestablished itself as the market leader in the infant formula business. Yet, the significant runoff of COVID-19 testing-related sales is hurting Abbott’s Diagnostics growth. Tough macro conditions also pose a concern.

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

Shares of Bridger Aerospace have underperformed the Zacks Aerospace - Defense industry over the past year (-54.9% vs. +0.3%). This microcap company with market capitalization of $165.88 million is witnessing high leverage and debt servicing pressures, seasonal revenue dependence, ongoing losses and execution risks in international expansion pose significant challenges.

Its success hinges on maximizing fleet utilization, managing debt and maintaining government contracts amid an unpredictable wildfire environment. Nevertheless, Bridger Aerospace is positioned to capitalize on the rising demand for aerial firefighting services, driven by climate change and population shifts to wildfire-prone areas. 

Bridger Aerospace's fleet, including CL-415EAF "Super Scoopers" and advanced surveillance aircraft, secures its strong market position and ensures a stable income. The acquisition of FMS Aerospace diversifies revenue streams, adding year-round income and reducing reliance on seasonal fire activity. The expansion into international markets offers growth potential.

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

Other noteworthy reports we are featuring today include Phillips 66 (PSX), Occidental Petroleum Corporation (OXY) and BCE Inc. (BCE).

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>>>