We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Investment Ideas feature highlights: DraftKings, Eli Lilly and Emerson Electric
Read MoreHide Full Article
For Immediate Release
Chicago, IL – August 9, 2023 – Today, Zacks Investment Ideas feature highlights DraftKings (DKNG - Free Report) , Eli Lilly (LLY - Free Report) and Emerson Electric (EMR - Free Report) .
3 Stocks to Buy Following Beat & Raise Quarters
The bulk of the Q2 earnings season is in the rearview mirror, with most S&P 500 companies already unveiling their quarterly results. The period has largely been better than feared, helping to inject some positive sentiment into the market.
Of course, there have been several notable surprises during the cycle, including those from DraftKings, Eli Lilly and Emerson Electric. All three companies posted beat-and-raise quarters, owing to their successful operations.
For those interested in riding recent momentum, let’s take a closer look at each company’s quarterly print.
Eli Lilly
Eli Lilly’s Q2 results came in nicely above expectations, with the company exceeding the Zacks Consensus EPS Estimate by roughly 6.5% and delivering a 10% sales beat. Earnings saw year-over-year growth of nearly 70%, whereas revenue climbed 28% from the year-ago quarter.
In addition, the company raised its full-year 2023 guidance; Eli Lilly now expects annual revenue in the range of $33.4 – $33.9 billion (previously $31.2 – $31.7 billion) and adjusted earnings of $9.70 – $9.90 per share (previously $8.65 – $8.85).
The market reacted positively to the results and the guidance lift, with LLY shares soaring in pre-market trading.
The better-than-expected results were primarily driven by strength across its drugs portfolio, with its Mounjaro diabetes treatment providing a notable boost. Positive revisions from analysts haven’t yet hit the tape, but they’re sure to come in the following days, likely providing fuel for shares to continue climbing.
And for those interested in riding the momentum, LLY shares provide a passive income stream; shares currently yield a respectable 1%, with the payout growing by 15% over the last five years.
DraftKings
DraftKings exceeded the Zacks Consensus EPS Estimate by nearly 30%, improving nicely from the year-ago quarter. Quarterly revenue totaled $874.9 million, 15% ahead of expectations and growing an impressive 88% year-over-year, driven by customer retention and improved engagement.
The company’s revenue growth has been rapid. Its continued strong performance led to a revenue guidance upgrade; DKNG raised the midpoint of its FY23 revenue guidance to $3.5 billion, up from $3.185 billion. The company also updated its FY23 Adjusted EBITDA midpoint guidance to -$205 million vs. the previous -$315 million expected.
Positive revisions have followed, with analysts raising their expectations across several timeframes post-earnings. The stock is a Zacks Rank #2 (Buy).
Unsurprisingly, the market reacted positively to the results, with DKNG shares seeing a boost post-earnings.
Emerson Electric
Emerson Electric beat the Zacks Consensus Estimate by nearly 19% and reported earnings of $1.29 per share, down modestly from the year-ago period. The company generated $3.9 billion in revenue, ahead of expectations and well lower than year-ago sales of $5.0 billion.
The company raised its FY23 guidance following the results, expecting net sales growth of 10.5% and free cash flow in a bracket of $2.2 – $2.3 billion. Like DKNG, Emerson has seen positive revisions following the release, with the stock sporting a Zacks Rank #2 (Buy).
Emerson Electric shares saw buying pressure post-earnings, confirming the robust results.
Bottom Line
With the bulk of the Q2 earnings cycle behind us, we’ve been met with many positive surprises. Of course, there have been some negative surprises as well, but the overall tone of the period has been calm.
And all three companies above all delivered better-than-expected results and lifted guidance.
For those interested in riding momentum post-earnings, all three deserve serious consideration.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Zacks Investment Ideas feature highlights: DraftKings, Eli Lilly and Emerson Electric
For Immediate Release
Chicago, IL – August 9, 2023 – Today, Zacks Investment Ideas feature highlights DraftKings (DKNG - Free Report) , Eli Lilly (LLY - Free Report) and Emerson Electric (EMR - Free Report) .
3 Stocks to Buy Following Beat & Raise Quarters
The bulk of the Q2 earnings season is in the rearview mirror, with most S&P 500 companies already unveiling their quarterly results. The period has largely been better than feared, helping to inject some positive sentiment into the market.
Of course, there have been several notable surprises during the cycle, including those from DraftKings, Eli Lilly and Emerson Electric. All three companies posted beat-and-raise quarters, owing to their successful operations.
For those interested in riding recent momentum, let’s take a closer look at each company’s quarterly print.
Eli Lilly
Eli Lilly’s Q2 results came in nicely above expectations, with the company exceeding the Zacks Consensus EPS Estimate by roughly 6.5% and delivering a 10% sales beat. Earnings saw year-over-year growth of nearly 70%, whereas revenue climbed 28% from the year-ago quarter.
In addition, the company raised its full-year 2023 guidance; Eli Lilly now expects annual revenue in the range of $33.4 – $33.9 billion (previously $31.2 – $31.7 billion) and adjusted earnings of $9.70 – $9.90 per share (previously $8.65 – $8.85).
The market reacted positively to the results and the guidance lift, with LLY shares soaring in pre-market trading.
The better-than-expected results were primarily driven by strength across its drugs portfolio, with its Mounjaro diabetes treatment providing a notable boost. Positive revisions from analysts haven’t yet hit the tape, but they’re sure to come in the following days, likely providing fuel for shares to continue climbing.
And for those interested in riding the momentum, LLY shares provide a passive income stream; shares currently yield a respectable 1%, with the payout growing by 15% over the last five years.
DraftKings
DraftKings exceeded the Zacks Consensus EPS Estimate by nearly 30%, improving nicely from the year-ago quarter. Quarterly revenue totaled $874.9 million, 15% ahead of expectations and growing an impressive 88% year-over-year, driven by customer retention and improved engagement.
The company’s revenue growth has been rapid. Its continued strong performance led to a revenue guidance upgrade; DKNG raised the midpoint of its FY23 revenue guidance to $3.5 billion, up from $3.185 billion. The company also updated its FY23 Adjusted EBITDA midpoint guidance to -$205 million vs. the previous -$315 million expected.
Positive revisions have followed, with analysts raising their expectations across several timeframes post-earnings. The stock is a Zacks Rank #2 (Buy).
Unsurprisingly, the market reacted positively to the results, with DKNG shares seeing a boost post-earnings.
Emerson Electric
Emerson Electric beat the Zacks Consensus Estimate by nearly 19% and reported earnings of $1.29 per share, down modestly from the year-ago period. The company generated $3.9 billion in revenue, ahead of expectations and well lower than year-ago sales of $5.0 billion.
The company raised its FY23 guidance following the results, expecting net sales growth of 10.5% and free cash flow in a bracket of $2.2 – $2.3 billion. Like DKNG, Emerson has seen positive revisions following the release, with the stock sporting a Zacks Rank #2 (Buy).
Emerson Electric shares saw buying pressure post-earnings, confirming the robust results.
Bottom Line
With the bulk of the Q2 earnings cycle behind us, we’ve been met with many positive surprises. Of course, there have been some negative surprises as well, but the overall tone of the period has been calm.
And all three companies above all delivered better-than-expected results and lifted guidance.
For those interested in riding momentum post-earnings, all three deserve serious consideration.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.