Top Analyst Reports for Amazon, Thermo Fisher & Eli Lilly

Wednesday, January 13, 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 Amazon (AMZN), Thermo Fisher Scientific (TMO) and Eli Lilly (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 shares have outperformed the S&P 500 over the past year (+66.9% vs. +17.6%). The Zacks analyst believes that Amazon is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio.

Further, a coronavirus-led spike in online orders continues to be a major tailwind. Also, solid growth in its online stores sales remains a positive. A surge in online grocery shopping is another positive. Additionally, the strong adoption rate of AWS is aiding the company’s cloud dominance.

Moreover, expanding the AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. Further, improving Alexa skills and expanding smart home products portfolio are positives. However, accelerating coronavirus related expenses remain risks for the company’s margin expansion in the near term. Also, rising cloud competition poses risk. 

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

Shares of Thermo Fisher have gained +28.7% in the last six months against the Zacks Medical Instruments industry’s gain of +18.1%. The Zacks analyst is optimistic about the exceptionally strong growth at Life Sciences Solutions and Specialty Diagnostics segments.

In terms of end market, pharma and biotech registered growth on robust performance in bioproduction and pharma services. In diagnostics and healthcare, the company experienced exceptionally high demand for COVID-19 testing. A strong capital structure looks encouraging.

The company’s third quarter results were better-than-expected. However, the coronavirus outbreak has massively disrupted the global supply chain. One of the end markets registered loss in the third quarter, largely due to customer shutdowns in China.

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

Eli Lilly’s shares have gained +20.5% over the past three months against the Zacks Large Cap Pharmaceuticals industry’s rise of +5.6%. The Zacks analyst believes that Lilly is making significant pipeline progress including its efforts to make therapies to treat COVID-19.

It is regularly adding promising new pipeline assets through business development deals.  It expects revenue growth to be driven by higher demand for drugs like Trulicity, Taltz, and others.

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. Estimates have gone up ahead of Q4 results. Lilly has a positive record of earnings surprises in the recent quarters.

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

Other noteworthy reports we are featuring today include Alphabet (GOOGL), Novo Nordisk (NVO) and CVS Health (CVS).

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Mark Vickery
Senior Editor

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

Surge in Online Orders & AWS Momentum Benefit Amazon (AMZN)

COVID-19 Test Sales, End Market Growth Aid Thermo Fisher (TMO)

Eli Lilly (LLY) Makes Significant Pipeline Progress

Featured Reports

Alphabet (GOOGL) Rides on Diversification; Legal Troubles Ail

The Zacks analyst believes that Alphabet's strong mobile, focus on cloud, artificial intelligence, Android OS and hardware is a positive.

Novo Nordisk (NVO) Boasts a Strong Piepeline Amid Competition

Per the Zacks analyst, Novo Nordisk has a strong presence in the Diabetes Care market and boasts of a strong pipeline. However, competition remains a concern.

CVS Health (CVS) Gains From Strength in Specialty Pharmacy

The Zacks analyst is upbeat about the strong new client wins and channel growth within CVS Health's specialty pharmacy.

Target's (TGT) Omnichannel Efforts, Digitization to Aid Sales

Per the Zacks analyst, Target's focus on enhancing omni-channel capacities, coming up with new brands, remodeling stores and expanding same-day delivery options have been fueling sales.

Applied Materials (AMAT) Rides on Logic Spending, Risk Remain

Per the Zacks analyst, strength in semiconductor equipment and strong customer spending in foundry and logic remain growth drivers.

Free Cash Flow Aids Norfolk Southern (NSC), Volumes Ail

The Zacks analyst is impressed by the company's strong free cash flow generation capabilities. However, volume woes due to coronavirus-led disruptions are concerning.

Enterprise (EPD) Poised to Gain from $3.9B Growth Projects

The Zacks analyst expects Enterprise Products to generate additional cashflow from growth capital projects of $3.9 billion.

New Upgrades

Rising Demand, Vale Fertilizantes Buyout Aid Mosaic (MOS)

The Zacks analyst believes that Mosaic is well placed to gain from increasing global demand for phosphate and potash as well as significant synergies of the Vale Fertilizantes acquisition.

Rising Assets and Cost Control Efforts Support Lazard (LAZ)

Per the Zacks analyst, Lazard's investment strategies in equity and fixed income markets might boost assets under management. Also, focus on cost savings will likely enhance its profitability.

Knowles (KN) Rides on Demand Curve, Solid Portfolio Traction

Per the Zacks analyst, Knowles is well positioned to benefit from better-than-expected demand for MEMS microphone in multiple markets and healthy traction in the Hearing Health business.

New Downgrades

Teva (TEVA) Opioid Litigation/DOJ Probe Creates Uncertainty

Teva is involved in an opioid litigation and faces DOJ investigations on allocations of price fixing, which, the Zacks analyst believes are overhangs on its stock.

Escalation in Direct Costs Deters PRA Health Sciences (PRAH)

The Zacks analyst is worried about rise in PRA Health's direct costs.Contraction in both margins is a concern as well.

Low Gas Gathering Volumes to Hurt Antero Midstream (AM)

The Zacks analyst believes that depressed natural gas gathering and compression volumes due to lower gas productions from muted drilling activities will continue to hurt Antero Midstream.

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Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
 
Novo Nordisk AS (NVO) : Free Stock Analysis Report
 
Eli Lilly and Company (LLY) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
CVS Health Corporation (CVS) : Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
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