Top Stock Reports for Oracle, Eli Lilly & BP

Friday, April 9, 2021

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 Oracle Corporation (ORCL), Eli Lilly and Company (LLY), and BP p.l.c. (BP). 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 >>>

Shares of Oracle have gained +22.4% over the last six months against the Zacks Computer – Software industry’s gain of +9.6%. The Zacks analyst believes that Oracle is gaining from ongoing momentum witnessed across its cloud business, driven by solid adoption of data cloud solutions, Enterprise Resource Planning (ERP) and Autonomous Database offerings. Further, strong uptake of cloud-based solutions, comprising NetSuite ERP and Fusion ERP, bodes well.

Also, companies like MercadoLibre, Xactly, 8x8 and Zoom Video have selected Oracle Cloud Infrastructure services, which is a testament to the strength of its cloud offerings. However, rising spend on product enhancements amid stiff competition in the cloud market is likely to limit margin expansion.

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

Shares of Eli Lilly have outperformed the Zacks Large Cap Pharmaceuticals industry in the year-to-date period (+8.1% vs. -0.6%). The Zacks analyst believes that Lilly’s revenue growth is being driven by higher demand for drugs like Trulicity, Taltz, and others. Lilly has some intriguing pipeline assets for cancer, diabetes and Alzheimer's that provide boost its growth potential beyond 2025. It also received rapid emergency approvals for bamlanivimab (monotherapy and combo) for COVID-19 in 2020. It is regularly adding promising new pipeline assets through business development deals.

However, generic competition for several drugs, rising pricing pressure in the United States mainly on key drug Trulicity, and price cuts in some international markets like China, Japan and Europe are some top-line headwinds.

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

Shares of BP have increased +20.5% in the year-to-date period against the Zacks Oil and Gas - Integrated – International industry’s gain of +19.6%. The Zacks analyst believes that BP has a strong portfolio of upstream projects, which has been backing impressive production growth. Since 2016, BP has placed several key upstream projects online. All the key projects BP has been delivering over the years backed the company to post record production levels. The company also plans to boost capital spending on renewable power business as most oil companies in Europe have decided to combat climate change by reducing greenhouse gas and carbon emissions, and focusing on clean energy.

However, the company’s significant reliance on debt capital is a concern. Hence, the firm can’t rely on its balance sheet unlike peers to combat the pandemic-induced uncertainty. Lower refinery throughput is still affecting the firm’s bottom-line.

You can read the full research report on BP here >>>)

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Sheraz Mian

Director of Research

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

Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships

Eli Lilly (LLY) Boasts a Solid Cancer & Alzheimer's Pipeline

BP Keeps Booming on Global Upstream Projects, Refining Hurts

Featured Reports

Digital Transformation, AI Proliferation Aid Infosys (INFY)

Per the Zacks analyst, Infosys is benefiting from large deal wins and higher investments by clients in digital transformation, artificial intelligence and automation.

Strong Backlog Aids Leidos (LDOS), Stiff Competition Hurts

Per the Zacks analyst, Leidos boasts solid backlog trends that indicate impressive revenue growth prospects. However, it faces stiff competition for its broad portfolio of products and services.

Solid Liquidity Position Aids SkyWest (SKYW), Low Revenue Ails

The Zacks analyst is impressed with SkyWest's strong liquidity position. Meanwhile, decline in passenger revenues due to the pandemic-led tepid air-travel demand is a concern.

Cost Optimization Aids CommScope (COMM) Amid COVID-19 Woes

Per the Zacks analyst, cost and debt reduction initiatives supported by enhanced network solutions drive CommScope's margins.

Solid Commercial Lines Aid Cincinnati Financial (CINF)

Per the Zacks analyst, Cincinnati Financial is set to grow on solid Commercial Lines segment as well as price rise, a higher level of insured exposures.

Rising Expenses Continue to Hurt Fresenius Medical (FMS)

Per the Zacks analyst, escalating expenses, mainly due to higher selling, general and administrative plus research and development costs, continue to restrict Fresenius Medical's margin expansion.

Constellation Brands' (STZ) Solid Beer Segment to Lift Sales

Per the Zacks analyst, Constellation Brands' strength in beer business due to higher shipment volumes and depletions is driving the company's top line.

New Upgrades

Valmont (VMI) Rides on Cost Saving Actions & Acquisitions

Per the Zacks analyst, Valmont will gain from cost-savings from restructuring actions, acquisitions and solid demand in transportation markets in North America.

Occupier Outsourcing, Cost Control to Aid CBRE Group (CBRE)

Per the Zacks analyst, CBRE Group will ride high on growing occupier outsourcing business and cost management. Also, property types, lines of business and market diversification aids in resiliency.

Strategic Initiatives & Acquisitions Aid Owens Corning (OC)

Per the Zacks analyst, Owens Corning's strategic efforts comprising expansion through acquisitions and investments in process technology to improve manufacturing efficiencies bode well.

New Downgrades

High Costs & Exploration Expenses to Hurt Agnico Eagle (AEM)

The Zacks analyst is concerned that higher costs and increased capital spending due to increased exploration expenses might impact Agnico Eagle's results.

Walmart (WMT) Troubled by High COVID-19 Costs, Divestitures

Per the Zacks analyst, Walmart has been seeing high COVID-19 costs, which hurt its fourth-quarter operating profit. Further, fiscal 2022 view suggests sales and earnings decline, due to divestitures.

Coronavirus-Led Store Closures Hurt The TJX Companies (TJX)

Per the Zacks analyst, temporary Europe and Canada store closures due to coronavirus has been a concern for The TJX Companies. Incidentally, this dented its fiscal fourth-quarter performance.

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