Top Research Reports for Merck, Eli Lilly & Charter Communications

Wednesday, November 27, 2019

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 Merck (MRK), Eli Lilly (LLY) and Charter Communications (CHTR). 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 >>>

Merck’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry year to date (+11.7% vs. +6.2%). The Zacks analyst believes that Merck’s products like Keytruda, Lynparza and Bridion are driving sales.

Keytruda sales are gaining from continued uptake in lung cancer and increased usage in other cancer indications. Keytruda has strong growth prospects based on increased utilization, recent approvals for new indications and potential additional approvals worldwide. Animal health and vaccine products are also performing strongly and remain core growth drivers for Merck.

However, generic competition for several drugs and pricing pressure will continue to be overhangs on the top line. Rising competitive pressure on the diabetes franchise and on products like Isentress and Zepatier remains a concern.

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

Shares of Eli Lilly have gained 5.8% in the past three months against the Zacks Large Cap Pharmaceuticals industry’s rise of 8.1%. The Zacks analyst believes that Lilly’s revenue growth is being driven by higher demand for its newer drugs including Trulicity, Jardiance, Taltz, Verzenio and new migraine drug, Emgality.

Lilly has made significant pipeline progress in the past year with several positive late-stage data readouts, multiple approvals and regulatory submissions. Lilly also added promising new pipeline assets through business development deals.

However, rising competitive pressure on Lilly’s drugs, generic competition for several drugs including Cialis, rising pricing pressure in the United States, price cuts in some international markets, currency headwinds and the impact of the failed Lartruvo study are putting pressure on the top line.

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

Charter Communications' shares have gained 23.5% over the past six months against the Zacks Cable TV industry's rise of 7.3%. The Zacks analyst believes that the company is benefiting from growth in Internet, mobile, commercial and video revenues.

Increase in Internet speed at no extra cost is also aiding subscriber growth. Additionally, Charter’s spectrum mobile products are gaining traction and subscriber base is increasing rapidly. Launch of spectrum mobile services to small and medium business customers is a key catalyst. Improving free cash flow is a growth driver.

However, commercial revenues continued to suffer due to migration of customers to Spectrum pricing, and packaging from Legacy TWC and Legacy Bright House. Further, Charter persistently loses video subscribers, primarily due to cord-cutting and intense competition from streaming service providers like Netflix and Amazon.

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

Other noteworthy reports we are featuring today include Intuit (INTU), Alibaba Group (BABA) and Charles Schwab (SCHW).

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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

Keytruda is Key to Merck's (MRK) Long Term Growth Prospects

New Drugs to Drive Lilly's (LLY) Sales Amid Generic Pressure

Video & Spectrum Mobile Subscriber Gain Aids Charter (CHTR)

Featured Reports

Intuit (INTU) Rides on Solid Product Portfolio & Cloud Shift

Per the Zacks analyst, Intuit is gaining from solid adoption of TurboTax Live offering, and its lending product - QuickBooks Capital.

Alibaba (BABA) Drives On Cloud Growth; Investments Hurt

Per the Zacks analyst, Alibaba benefits from e-commerce business, cloud services & international growth. However, higher costs associated with new initiatives is a concern.

Acquisitions, Trading Focus Aid Schwab (SCHW) Amid Low Rates

Per the Zacks analyst, Schwab's planned buyouts of TD Ameritrade and USAA's Investment Management Company will help diversify revenues.

Systematic Investments, Strong Cash Flow Aid Exelon (EXC)

Per the Zacks analyst Exelon's $22.6 billion long term investment plan will assist to lower debts and fund growth.

E-commerce Growth Aids FedEx (FDX) Amid Express Unit Woes

Per the Zacks analyst, FedEx is benefiting from rising package volumes, courtesy of rapid e-commerce growth.

Pasadena Terminal to Aid Valero (VLO), High Corn Prices Ail

Valero's Pasadena terminal, expected to come online in 2020, will boost profits from exports. However, the Zacks analyst is concerned over rising corn prices that are affecting the ethanol business.

Brown-Forman's (BF.B) Solid Underlying Sales to Boost Growth

Per the Zacks analyst, Brown-Forman is experiencing solid underlying sales growth due to strength in its major brands. This along with constant investments in its brand portfolio is aiding results.

New Upgrades

Organic Growth & Strategic Acquisitions Aid Jones Lang (JLL)

Per the Zacks Analyst, solid growth in Real Estate Services segment fuels Jones Lang LaSalle's organic growth. Strategic buyouts and technology investments provides it a competitive edge.

Cirrus Logic (CRUS) Rides on Strengthening Product Portfolio

Per the Zacks analyst, Cirrus Logic's expanding product portfolio comprising audio, voice and other adjacent market items, such as haptics, is a key driver.

Fleet Upgrade & Passenger Revenues Boost Allegiant (ALGT)

The Zacks analyst is impressed with passenger revenue growth at Allegiant owing to strong demand for air travel. Efforts to modernize its fleet are also encouraging.

New Downgrades

Fluctuating Commodity Price, High Debts Ail Occidental (OXY)

Per the Zacks analyst increased debt level due to loan taken by Occidental to fund acquisition of Anadarko and fluctuating commodity prices is hampering its profitability.

Weak Pressure Pumping Market to Hurt ProPetro (PUMP)

The Zacks analyst is concerned over the weak market sentiment and lower pricing with respect to pressure pumping services in the Permian Basin, which is expected to weigh on ProPetro's revenues.

GoPro (GPRO) Hurt by Production Delay Amid Stiff Competition

Per the Zacks analyst, GoPro is likely to be hit by a delay in production of its Hero8 Black cameras. It trimmed its 2019 revenue outlook due to intense competition in camera and camcorder market.


The Charles Schwab Corporation (SCHW): Free Stock Analysis Report

Merck & Co., Inc. (MRK): Free Stock Analysis Report

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

Intuit Inc. (INTU): Free Stock Analysis Report

Charter Communications, Inc. (CHTR): Free Stock Analysis Report

Alibaba Group Holding Limited (BABA): 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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