Yahoo Finance Top Research Reports for Amazon.com, Berkshire Hathaway & Eli Lilly
Wednesday, January 3, 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 Amazon.com, Inc. (AMZN), Berkshire Hathaway Inc. (BRK.B) and Eli Lilly and Company (LLY). 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 >>>
Amazon.com shares were up +75.7% over the past year, which compares to the Zacks Tech sector's +50.4% gain and the +26.1% gain for the Zacks Retail sector (Amazon's own sector). The company is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Strengthening relationship with third-party sellers is a positive.
Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance. Expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. Robust Alexa skills and expanding smart home products portfolio are positives.
The company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds. However, inflationary pressure, geopolitical tensions and foreign currency headwinds remain concerns.
(You can read the full research report on Amazon.com here >>>)
Shares of Berkshire Hathaway have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+17.0% vs. +13.4%). The company is one of the largest property and casualty insurance companies with numerous diverse business activities. A strong cash position supports earnings-accretive bolt-on buyouts and is indicative of its financial flexibility.
Continued insurance business growth fuels increase in float, drive earnings and generates maximum return on equity. The non-insurance businesses have also been doing well in the last few years. The addition of Pilot Travel Centers (PTC) has strengthened its energy business. A sturdy capital level provides further impetus.
However, exposure to catastrophe loss induces earnings volatility and also affects the property and casualty underwriting results of Berkshire. Huge capital expenditure remains a headwind for the company.
(You can read the full research report on Berkshire Hathaway here >>>)
Eli Lilly shares have handily outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+63.8% vs. +11.3%), reflecting the company's impressive offerings in areas like obesity, diabetes and Alzheimer’s. Lilly's Q4 results are coming out on February 6th, but they beat top- and bottom-line estimates in the Q3 report on November 2nd.
At the back of Lilly's revenue growth is higher demand for drugs like Verzenio, Trulicity, Taltz and others. Sales of its new drug, Mounjaro, are already benefiting from strong demand trends.
Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s. Mounjaro was recently approved for the obesity indication by the name of Zepbound. Mounjaro and Zepbound are expected to be key top-line drivers for Lilly. It has also gained approvals for some other new drugs in 2023.
However, generic competition for some drugs, rising pricing pressure and challenges in meeting strong demand for incretin products are some top-line headwinds.
(You can read the full research report on Eli Lilly here >>>)
Other noteworthy reports we are featuring today include JPMorgan Chase & Co. (JPM), Costco Wholesale Corporation (COST) and T-Mobile US, Inc. (TMUS).
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>>>
Today's Must Read
Amazon (AMZN) Banks on Prime Momentum & Growing AWS Adoption
Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Ail
Lilly (LLY) New Products Hold Key to Long-Term Growth
Featured Reports
Buyouts, Rates & Loans Aid JPMorgan (JPM), Fee Income Ails
Per the Zacks analyst, high rates, loan growth, buyouts and initiatives to expand the branch expansion efforts will aid JPMorgan amid challenges to bolster fee income performance and high expenses.
Decent Comparable Sales Run to Fuel Costco's (COST) Top Line
Per the Zacks analyst, Costco's growth strategies, decent comparable sales performance and strong membership trends reinforce its position. Comparable sales rose 3.8% during the first quarter.
T-Mobile (TMUS) Rides on Rapid 5G Adoption, Cost Discipline
Per the Zacks analyst, growing adoption of T-Mobile's ultra capacity 5G network and focus on developing advanced 5G use cases will likely boost margin. The cost optimization initiative is a tailwind.
Cost Control Aids Wells Fargo (WFC) Amid Declining Revenues
Per the Zacks analyst, Wells Fargo's cost-saving measures like branch closures and headcount reduction will help offset falling revenue trends due to business divestures and volatile fee income.
FedEx's (FDX) Dividend Payouts Aid Amid Shipping Volume Woes
The Zacks analyst is impressed by the company's efforts to reward its shareholders through dividends and buybacks. However, shipping volume-related weakness is a concern.
Regulated Investment and Debt Management Aid Exelon (EXC)
Per the Zacks analyst, Exelon's planned $31.3B investment to strengthen transmission and distribution lines and efficient management of outstanding debt are going to boost its performance.
STERIS (STE) Sterilization Wing Grows on New Customer Uptake
The Zacks analyst expects STERIS' Applied Sterilization business to continue to put up a robust performance on growing demand from medical device and biopharma customers.
New Upgrades
Strength in Aerospace Segment Drives General Electric (GE)
Per the Zacks analyst, impressive performance of General Electric's Aerospace unit, fueled by robust demand for commercial engines & services and solid operational execution, will lend it momentum.
Dupixent Profits, Strong Pipeline Fuels Regeneron (REGN)
Per the Zacks analyst, stellar performance of Dupixent fuel Regeneron even as lead drug Eylea faces disruption. The company's progress with the oncology portfolio & other candidates is also impressive
Solid Operating Model & Low Costs Aids Williams-Sonoma (WSM)
Per the Zacks analyst, Williams-Sonoma aids from solid operating model, which includes full-price selling, supply-chain efficiencies and top-tier customer service, and lower shipping and freight costs
New Downgrades
Declining Return on Capital Hurts SM Energy (SM)
The Zacks analyst is concerned with SM Energy's declining return on invested capital. The upstream firm also has higher exposure to debt capital than its peers.
ATI Grapples with Demand Softness Amidst Industrial Downturn
Per the Zacks analyst, ATI is facing challenges from weakened demand due to softness in general industrial end markets. A weak electronics market in Asia and high debt are other concerns.
Keysight (KEYS) Plagued by Sluggish Demand, Integration Risks
Per the Zacks analyst, demand softness in commercial communications and electronic industrial solutions group will likely impede Keysight's top line. Frequent buyouts have escalated integration risks.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
