The Zacks Analyst Blog Highlights Eli Lilly, PepsiCo, International Business Machines, Booking Holdings, Northrop Grumman Corporation and Illinois Tool Works

For Immediate Release

Chicago, IL – September 14, 2022 – 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: Eli Lilly and Co. LLY, PepsiCo, Inc. PEP, International Business Machines Corp. IBM, Booking Holdings Inc. BKNG, Northrop Grumman Corporation NOC, and Illinois Tool Works Inc. ITW.

Here are highlights from Tuesday’s Analyst Blog:

Top Stock Reports for Eli Lilly, Pepsico and IBM

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 Eli Lilly and Co., PepsiCo, Inc. and International Business Machines 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 >>>

Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+37.2% vs. +12.8%), reflecting the company's solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Trulicity, Taltz, and others.

It is regularly adding promising new pipeline assets through business development deals. Lilly expects to launch five new medicines by 2023 end including Mounjaro for type II diabetes (already launched) and donanemab for early Alzheimer's disease. Both drugs have multibillion dollar sales potential.

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 >>>)

PepsiCo’s shares have outperformed the Zacks Beverages - Soft drinks industry over the past year (+13.7% vs. +9.7%) on the back of continued momentum in the company's business as reflected in the 16th straight quarter of sales beat in the last quarterly release. It benefits from the resilience and strength of global beverage and convenient food businesses. It expects to benefit by delivering convenience, variety and value proposition to customers through its brands. It raised its revenue view for 2022.

However, PepsiCo witnessed margin pressures in the second quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. PEP anticipates incremental input cost inflation for the balance of 2022. Adverse currency rates also remain headwinds.

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

IBM’s shares have outperformed the Zacks Computer - Integrated Systems industry over the past year (+4.8% vs. -6.4%). The company’s synergies from the Red Hat buyout are bolstering its competitive position in the hybrid cloud market. IBM’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul.

A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability. However, IBM is facing stiff competition in the cloud computing market from the likes of Amazon Web Services and Microsoft Azure.

Higher debt levels amid extensive restructuring activities pose a concern for the company. High integration risk from continuous acquisition spree is another headwind. Muted cash flow outlook for 2022 due to the impact of dollar strength and winding down of business operations in Russia remain another downside for the company.

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

Other noteworthy reports we are featuring today include Booking Holdings Inc., Northrop Grumman Corporation, and Illinois Tool Works Inc.

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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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Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
 
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
 
International Business Machines Corporation (IBM) : Free Stock Analysis Report
 
Eli Lilly and Company (LLY) : Free Stock Analysis Report
 
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
 
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
 
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