Top Research Reports for Eli Lilly, T-Mobile & BHP

Friday, May 31, 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 Eli Lilly and Company (LLY), T-Mobile US, Inc. (TMUS) and BHP Group Limited (BHP). 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 year-to-date period (+41.5% vs. +15.9%). The company boasts a solid portfolio of core drugs for diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Mounjaro, Verzenio, Jardiance, Taltz and others.

Lilly’s new tirzepatide medicines, diabetes drug Mounjaro and obesity medicine, Zepbound, are seeing exceptionally strong demand trends. Lilly has also launched some other new products like Omvoh and Jaypirca. Mounjaro, Zepbound and other new products are expected to drive Lilly’s top line in 2024. Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s.

However, generic competition for some drugs, rising pricing pressure and challenges in meeting strong demand for incretin products like Zepbound and Mounjaro are some top-line headwinds.

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

Shares of T-Mobile have outperformed the Zacks Wireless National industry over the past year (+23.7% vs. +21.3%). The company continues to boast a leadership position in the 5G market. It's 5G network covers 98% of Americans, or around 330 million people in the country.

T-Mobile inked a definitive agreement to acquire U.S. Cellular’s wireless operations, along with 30% of its spectrum assets. The transaction is likely to facilitate a competitive market with increased options and enable T-Mobile to expand its fast-growing home broadband and fixed wireless offerings. Healthy demand for postpaid services is a tailwind.

However, the highly competitive and saturated U.S. telecom market lowers its growth potential. The residual value of the surrendered phones, which the companies look to sell in other markets, may induce liquidity risk if the plan falls apart. The rising debt burden negatively impacts investors' confidence.

(You can read the full research report on T-Mobile here >>>)

BHP shares have gained +11.7% over the past year against the Zacks Mining - Miscellaneous industry’s gain of +21.9%. The company can witness potential rebound in iron ore prices driven by infrastructure demand in the United States and the automotive sector.  The demand for electric vehicles is expected to support copper and nickel prices.

BHP’s investment in projects focused on future-facing commodities like copper, nickel and potash will aid growth. Its efforts to improve operational efficiency through technology will also continue to boost margins.

However, BHP’s fiscal 2024 iron ore production guidance is 254-264.5 Mt, indicating 1% year-over-year growth at the midpoint. Copper production is expected to grow 5.7% to 1,720-1,910 kt, while nickel is projected to increase 2.5% to 77-87 kt. Iron ore prices have been on a downtrend recently due to weaker-than-expected demand in China. The contraction in the manufacturing sector has weighed on copper prices.

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

Other noteworthy reports we are featuring today include American International Group, Inc. (AIG), HP Inc. (HPQ) and Exelon Corporation (EXC).

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

Lilly (LLY) New Products Hold Key to Sales Growth in 2024

T-Mobile (TMUS) Rides on Healthy Demand, Strategic Buyout

Investments to Drive BHP Group (BHP) Amid Price Volatility

Featured Reports

AIG's Cost-Reduction Initiatives Aid, Debt Remains High
The Zacks analyst expects AIG's cost-control efforts to continue boosting the bottom line. However, the company's massive debt level remains a concern.

GenAI-Enabled PCs to Aid HP (HPQ) Personal Systems Revenues
Per the Zacks analyst, growing interest in generative artificial intelligence-enabled PCs might give a fresh boost to HP's Personal Systems segment revenues in fiscal 2024 and beyond.

Regulated Investment and Revenue Decoupling Aid Exelon (EXC)
Per the Zacks analyst, Exelon's planned $34.5B investment to strengthen transmission and distribution lines and revenue decoupling mitigates the impact of load fluctuation to boost its performance.

NOV Inc. (NOV) to Benefit from Large Installed Base of Rigs
The Zacks analyst believes that NOV's large installed base of rigs worldwide will provide it with a steady recurring revenue stream but is worried over the low dividend yield.

Buyouts, Loans Aid Prosperity Bancshares (PB) Amid Cost Woes
Per the Zacks analyst, Prosperity Bancshares will continue to benefit from acquisitions. solid loan pipeline, deposits and rise in fee income. Yet, weak mortgage income and high costs are headwinds.

Solid Comps Run to Fuel Urban Outfitters' (URBN) Top Line
Per the Zacks analyst, Urban Outfitters commitment to improve comps, invest in direct-to-consumer business and expand e-commerce sales bode well. Comps rose 4.6% during first- quarter fiscal 2025.

Omnicell (OMCL) Banks on Advanced Services, Macro Woes Worry
The Zacks Analyst is impressed with the growing recognition of Omnicell's Advanced Services among the health systems, which are helping to transform pharmacy care. Yet, macro issues pose risks.

New Upgrades

DuPont (DD) Benefits from Productivity Actions, New Products
Per the Zacks analyst, DuPont's cost and productivity improvement actions will support its margins. It should also gain from new product launches in high-growth markets.

Solid Buyouts & Telecomm Business Prospect Aid Dycom (DY)
Per the Zacks analyst, Dycom is banking on strong contributions from acquisitions and significant opportunities from major industry participants, as they are deploying 1-gigabit wireline networks.

Immunovant (IMVT) Pipeline Progress Exhibits Upbeat Prospects
Per the Zacks Analyst, IMVT's lead candidate, IMVT-1402, has significant potential to become a best-in-class medication for a broad set of autoimmune indications, giving it an edge over competitors.

New Downgrades

Technology & Product Investment Costs Hurt Insperity (NSP)
Per the Zacks analyst, Insperity's investments toward technology, product and service offerings is likely to keep the bottom line under pressure.

Rising Costs & Higher Competition Hurts Arrow Electronics (ARW)
Per the Zacks analyst, rising costs, a highly leveraged balance sheet and intense competition are major concerns for Arrow Electronics.

Multifamily Normalization Hurts Builders FirstSource (BLDR)
Per the Zacks analyst, continued multifamily normalization is hurting Builders FirstSource. Also, high costs and a cyclical market is added concern.

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.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Exelon Corporation (EXC) : Free Stock Analysis Report

HP Inc. (HPQ) : Free Stock Analysis Report

Eli Lilly and Company (LLY) : Free Stock Analysis Report

BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report

American International Group, Inc. (AIG) : Free Stock Analysis Report

T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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