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The Zacks Analyst Blog Highlights Microsoft, Eli Lilly, Costco and Koss

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For Immediate Releases

Chicago, IL – May 20, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft Corp. (MSFT - Free Report) , Eli Lilly and Co. (LLY - Free Report) , Costco Wholesale Corp. (COST - Free Report) , Koss Corp. (KOSS - Free Report) .

Top Research Reports for Microsoft, Eli Lilly & Co. and Costco

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 Microsoft Corp., Eli Lilly and Co. and Costco Wholesale Corp., as well as a micro-cap stock, Koss Corp. 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 >>>

Microsoft’s shares have outperformed the Zacks Computer - Software industry over the past year (+33.2% vs. +31.4%). The company’s fiscal third-quarter results gained from strong growth in Intelligent Cloud and Productivity and Business Processes revenues. Productivity and Business Processes revenues rose due to a strong adoption of Office 365 Commercial solutions.

Microsoft 365 Consumer subscribers grew to 80.8 million. Continued momentum in the small and medium businesses, frontline worker offerings and a gain in revenue per user drove the top line. Intelligent Cloud revenues were driven by growth in Azure and a rise in AI Copilot business.

However, the office's declining commercial licensing has been a headwind due to the continued customer shift to cloud offerings. Higher operating expenses and spending on Azure enhancements amid stiff competition in the cloud space remain a concern.

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

Shares of Eli Lilly have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+32.7% vs. +16.7%). The company’s 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 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 >>>)

Costco’s shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+64.0% vs. +31.4%). The company, being a consumer defensive stock, has been surviving the market turmoil pretty well.

The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth. These factors have been helping it register decent sales and earnings numbers.

This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates. A favorable product mix, steady store traffic, pricing power and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.

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

Shares of Koss have outperformed the Zacks Audio Video Production industry over the past year (+24.5% vs. -14.2%). The company maintains financial stability with $2.9 million in cash and $7 million in short-term investments. Its focus on innovation, cost management, and quality ensures that it remains competitive, while its global presence and customer loyalty offer avenues for growth.

However, Koss faces challenges in a competitive, evolving earphone market dominated by giants like Sony and Bose. Market saturation and aggressive competition threaten to erode Koss's share and profitability.

Financially, Koss reported a revenue decline to $9.4 million from $10 million year-over-year, signaling issues in production cost management and pricing strategies. Legal disputes over patents add financial and reputational risks. Additionally, reliance on Chinese and Taiwanese manufacturers exposes Koss to geopolitical risks and supply chain disruptions.

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

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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.

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