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Bioventus and Pool have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – August 29, 2024 – Zacks Equity Research shares Bioventus (BVS - Free Report) as the Bull of the Day and Pool Corp (POOL - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Eli Lilly and Co. (LLY - Free Report) , Novo Nordisk (NVO - Free Report) and Viking Therapeutics (VKTX - Free Report) .
Bioventus is a Zacks Rank #1 (Strong Buy) that has a C for Value and an A for Growth. This company makes drugs that help people heal quickly and safely. They target osteoarthritis, surgical and non surgical bones healing. Let’s explore more about this company in this Bull of The Day article.
Description
Bioventus, Inc. is a medical technology company, which focuses on developing and commercializing and proprietary orthobiologic products for the treatment of patients suffering from an array of musculoskeletal conditions. The BMP segment comprises proprietary next-generation bone morphogenetic protein, or BMP. The company was founded on November 23, 2011 and is headquartered in Durham, NC.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Bioventus (BVS - Free Report) has a solid earnings history with the company topping the Zacks Consensus in each of the last three quarters.
Over the course of the last four quarters the average positive earnings surprise works out to be 102%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Annual Estimates are moving higher for Boventusms.
This quarter has held still at $0.06.
Next quarter is also showing no movement in the last 90 days and is at $0.09.
The full year 2024 has increased from $0.27 to $0.40 over the last 30 days.
Next year has also moved up from $0.43 to $0.45 over the last 30 days.
Growth
For 2024 the company is expected to show 9.45% growth with $560 million in sales. Next year that number grows to $593M for a 5.8% increase.
Valuation
The forward PE is 24x and that is a fairly high multiple for the expected topline growth. Price to book is 4.1x and that metric is also a little high. Price to sales is at 1.46x leaves plenty of room for expansion with better revenue metrics.
Margins are looking good with the Zacks site showing operating margins moving from 1% to 5.1% and up to 5.7% over the last three quarters. Growing sales and higher margins will translate to higher earnings per share.
Pool Corp is a Zacks Rank #5 (Strong Sell) even after the company beat the Zacks Consensus Estimate when the last reported on July 25 of this year. You might have guessed it from the name of the company, but they do indeed sell swimming pools and other related products. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Pool Corp. engages in the wholesale distribution of swimming pool supplies, equipment, and related leisure products. It also offers non-discretionary pool maintenance products such as chemicals and replacement parts, discretionary products like packaged pool kits, whole goods, irrigation, and landscape products, including a complete line of commercial and residential irrigation products and parts, power equipment for the professional landscape market, specialty products such as outdoor lighting, grills, and outdoor kitchen components, and golf irrigation and water management products. The company was founded in 1993 and is headquartered in Covington, LA.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of Pool Corp , I see three beats and one miss of the Zacks Consensus Estimate over the last year. The most recent quarter was a beat with the company posting $4.98 when the consensus was calling for $4.90. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For POOL I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $11.44 to $11.11 over the last 60 days.
The next year has moved from $13.33 to $12.03 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
Eli Lilly Launches Discount Version of Obesity Drug Zepbound
Eli Lilly and Co. announced the launch of single-dose vials of its popular obesity drug, Zepbound (tirzepatide), to meet supply shortages in response to high demand. These 2.5 mg and 5 mg single-dose vials are priced at least 50% lower than the list price of competing GLP-1 medicines for obesity.
A four-week supply of the 2.5 mg vials has been priced at $399 while the same for the 5 mg dose will cost $549. Zepbound is presently available in a single-dose pen (autoinjector). The vials should be easier to manufacture than the pens and can help improve supply.
These cheaper versions of Zepbound will be available through Lilly’s direct-to-consumer website called LillyDirect for self-pay by patients with a valid on-label prescription. The availability of these Zepbound single-dose vials is expected to broaden access for obesity patients especially those without insurance. The launch of single-dose vials also lowers the need for people to use compounded versions of tirzepatide.
Several pharmacies, weight loss clinics and medical spas are selling/making compounded versions of Mounjaro and Zepbound. Lilly has time and again warned against the use of custom-made products claiming to contain tirzepatide that are made or distributed by compounding pharmacies. These products are not approved by the FDA and can pose serious health risks to users.
Year to date, Lilly’s stock has risen 63.7% compared with an increase of 27.1% for the industry.
LLY Improves Tirzepatide Supply to Meet High Demand
Zepbound and Lilly’s type-II diabetes drug, Mounjaro includes the same compound tirzepatide, a dual GIP and GLP-1 receptor agonist (GIP/GLP-1 RA). The GLP-1 segment is an important class of drugs for multiple cardiometabolic diseases and is gaining significant popularity. Per research conducted by Goldman Sachs, the obesity market in the United States is expected to reach $130 billion by 2030.
Despite a short time on the market, Mounjaro and Zepbound have become key top-line drivers for Lilly in 2024, with demand rising rapidly. Mounjaro and Zepbound generated sales of almost $6.7 billion in the first half of 2024, accounting for 44% of the company’s total revenues.
Demand for Mounjaro and Zepbound is extremely strong and exceeds supply. Lilly faced supply shortages in the first half of the year due to skyrocketing demand. Lilly has built, upgraded or acquired new facilities in the United States and Europe to improve supply, and the benefit of these investments is showing now as the supply chain for these drugs has improved. With supply improving, Lilly has better visibility on its production plans for Mounjaro and Zepbound for the year and planned launches of Mounjaro in international markets.
Lilly is investing broadly in obesity and has 11 new molecules currently in clinical development, including two late-stage candidates, orforglipron, an oral GLP-1 small molecule and retatrutide, a GGG tri-agonist. Several phase III data readouts are expected in 2025.
Other Players in the GLP-1 Market
Lilly’s tirzepatide medicines face strong competition from Novo Nordisk’s semaglutide. Semaglutide is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy injection for weight management. Novo Nordisk is also working to improve the supply of Wegovy in response to rising demand but has not been as successful as Lilly in its efforts. The launch of these affordable versions of Zepbound could put further pressure on Novo Nordisk.
Viking Therapeutics is developing VK2735 as a subcutaneous injection and as an oral pill for treating obesity. The candidate has demonstrated superior weight reduction in clinical studies. Viking Therapeutics plans to advance the subcutaneous formulation to late-stage development and start a mid-stage study on the oral formulation before 2024-end. Viking’s stock was down around 6.2% on Tuesday as Lilly’s latest move to strengthen its presence in the obesity market creates further pressure on this small biotech whose obesity candidate is nearing late-stage development.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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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Bioventus and Pool have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – August 29, 2024 – Zacks Equity Research shares Bioventus (BVS - Free Report) as the Bull of the Day and Pool Corp (POOL - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Eli Lilly and Co. (LLY - Free Report) , Novo Nordisk (NVO - Free Report) and Viking Therapeutics (VKTX - Free Report) .
Here is a synopsis of all three stocks.
Bull of the Day:
Bioventus is a Zacks Rank #1 (Strong Buy) that has a C for Value and an A for Growth. This company makes drugs that help people heal quickly and safely. They target osteoarthritis, surgical and non surgical bones healing. Let’s explore more about this company in this Bull of The Day article.
Description
Bioventus, Inc. is a medical technology company, which focuses on developing and commercializing and proprietary orthobiologic products for the treatment of patients suffering from an array of musculoskeletal conditions. The BMP segment comprises proprietary next-generation bone morphogenetic protein, or BMP. The company was founded on November 23, 2011 and is headquartered in Durham, NC.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Bioventus (BVS - Free Report) has a solid earnings history with the company topping the Zacks Consensus in each of the last three quarters.
Over the course of the last four quarters the average positive earnings surprise works out to be 102%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Annual Estimates are moving higher for Boventusms.
This quarter has held still at $0.06.
Next quarter is also showing no movement in the last 90 days and is at $0.09.
The full year 2024 has increased from $0.27 to $0.40 over the last 30 days.
Next year has also moved up from $0.43 to $0.45 over the last 30 days.
Growth
For 2024 the company is expected to show 9.45% growth with $560 million in sales. Next year that number grows to $593M for a 5.8% increase.
Valuation
The forward PE is 24x and that is a fairly high multiple for the expected topline growth. Price to book is 4.1x and that metric is also a little high. Price to sales is at 1.46x leaves plenty of room for expansion with better revenue metrics.
Margins are looking good with the Zacks site showing operating margins moving from 1% to 5.1% and up to 5.7% over the last three quarters. Growing sales and higher margins will translate to higher earnings per share.
Bear of the Day:
Pool Corp is a Zacks Rank #5 (Strong Sell) even after the company beat the Zacks Consensus Estimate when the last reported on July 25 of this year. You might have guessed it from the name of the company, but they do indeed sell swimming pools and other related products. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Pool Corp. engages in the wholesale distribution of swimming pool supplies, equipment, and related leisure products. It also offers non-discretionary pool maintenance products such as chemicals and replacement parts, discretionary products like packaged pool kits, whole goods, irrigation, and landscape products, including a complete line of commercial and residential irrigation products and parts, power equipment for the professional landscape market, specialty products such as outdoor lighting, grills, and outdoor kitchen components, and golf irrigation and water management products. The company was founded in 1993 and is headquartered in Covington, LA.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of Pool Corp , I see three beats and one miss of the Zacks Consensus Estimate over the last year. The most recent quarter was a beat with the company posting $4.98 when the consensus was calling for $4.90. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For POOL I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $11.44 to $11.11 over the last 60 days.
The next year has moved from $13.33 to $12.03 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
Eli Lilly Launches Discount Version of Obesity Drug Zepbound
Eli Lilly and Co. announced the launch of single-dose vials of its popular obesity drug, Zepbound (tirzepatide), to meet supply shortages in response to high demand. These 2.5 mg and 5 mg single-dose vials are priced at least 50% lower than the list price of competing GLP-1 medicines for obesity.
A four-week supply of the 2.5 mg vials has been priced at $399 while the same for the 5 mg dose will cost $549. Zepbound is presently available in a single-dose pen (autoinjector). The vials should be easier to manufacture than the pens and can help improve supply.
These cheaper versions of Zepbound will be available through Lilly’s direct-to-consumer website called LillyDirect for self-pay by patients with a valid on-label prescription. The availability of these Zepbound single-dose vials is expected to broaden access for obesity patients especially those without insurance. The launch of single-dose vials also lowers the need for people to use compounded versions of tirzepatide.
Several pharmacies, weight loss clinics and medical spas are selling/making compounded versions of Mounjaro and Zepbound. Lilly has time and again warned against the use of custom-made products claiming to contain tirzepatide that are made or distributed by compounding pharmacies. These products are not approved by the FDA and can pose serious health risks to users.
Year to date, Lilly’s stock has risen 63.7% compared with an increase of 27.1% for the industry.
LLY Improves Tirzepatide Supply to Meet High Demand
Zepbound and Lilly’s type-II diabetes drug, Mounjaro includes the same compound tirzepatide, a dual GIP and GLP-1 receptor agonist (GIP/GLP-1 RA). The GLP-1 segment is an important class of drugs for multiple cardiometabolic diseases and is gaining significant popularity. Per research conducted by Goldman Sachs, the obesity market in the United States is expected to reach $130 billion by 2030.
Despite a short time on the market, Mounjaro and Zepbound have become key top-line drivers for Lilly in 2024, with demand rising rapidly. Mounjaro and Zepbound generated sales of almost $6.7 billion in the first half of 2024, accounting for 44% of the company’s total revenues.
Demand for Mounjaro and Zepbound is extremely strong and exceeds supply. Lilly faced supply shortages in the first half of the year due to skyrocketing demand. Lilly has built, upgraded or acquired new facilities in the United States and Europe to improve supply, and the benefit of these investments is showing now as the supply chain for these drugs has improved. With supply improving, Lilly has better visibility on its production plans for Mounjaro and Zepbound for the year and planned launches of Mounjaro in international markets.
Lilly is investing broadly in obesity and has 11 new molecules currently in clinical development, including two late-stage candidates, orforglipron, an oral GLP-1 small molecule and retatrutide, a GGG tri-agonist. Several phase III data readouts are expected in 2025.
Other Players in the GLP-1 Market
Lilly’s tirzepatide medicines face strong competition from Novo Nordisk’s semaglutide. Semaglutide is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy injection for weight management. Novo Nordisk is also working to improve the supply of Wegovy in response to rising demand but has not been as successful as Lilly in its efforts. The launch of these affordable versions of Zepbound could put further pressure on Novo Nordisk.
Viking Therapeutics is developing VK2735 as a subcutaneous injection and as an oral pill for treating obesity. The candidate has demonstrated superior weight reduction in clinical studies. Viking Therapeutics plans to advance the subcutaneous formulation to late-stage development and start a mid-stage study on the oral formulation before 2024-end. Viking’s stock was down around 6.2% on Tuesday as Lilly’s latest move to strengthen its presence in the obesity market creates further pressure on this small biotech whose obesity candidate is nearing late-stage development.
Lilly’s Zacks Rank
Lilly has a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Eli Lilly and Company price-consensus-chart | Eli Lilly and Company Quote
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Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.