Chicago, IL – January 23, 2025 – 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, Exxon Mobil Corp. XOM, Costco Wholesale Corp. COST and Flanigan's Enterprises, Inc. BDL.
Here are highlights from Thursday’s Analyst Blog:
Top Analyst Reports for Eli Lilly, Exxon Mobil and Costco
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., Exxon Mobil Corp. and Costco Wholesale Corp., as well a micro-cap stock Flanigan's Enterprises, Inc.The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+18.2% vs. -1.7%). Demand for the company’s popular GLP-1 drugs, Mounjaro and Zepbound, remains strong, making them the company’s key top-line drivers. Its new drugs contributed significantly to top-line growth in 2024. Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s.
However, sales of Mounjaro/Zepbound were disappointing in the second half of 2024 due to slower-than-expected growth, which has raised concerns about moderating demand for the drugs.
Declining sales of Trulicity, rising pricing pressure on some drugs and potential competition in the GLP-1 diabetes/obesity market are some top-line headwinds. Estimates have declined ahead of fourth-quarter results. Lilly has a mixed record of earnings surprises in recent quarters.
(You can read the full research report on Eli Lilly here >>>)
Shares of Exxon Mobil have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+19.6% vs. +14.5%). The company’s high-value assets in the Permian Basin and Guyana drive robust production growth, doubling upstream earnings since 2019. The Pioneer acquisition and Guyana ramp-up have enhanced profitability, while a robust structural savings strengthen resilience.
With a lower exposure to debt capital, XOM supports steady cash flows, dividends, buybacks and investments in high-return projects. Expansion in low-carbon tech, including Baytown's hydrogen facility, positions it for future growth.
Yet, refining margins are pressured due to global capacity increases, with refining profits softening. The refining margin pressure intensifies the reliance on upstream operations which is vulnerable to fluctuating oil and gas prices. Commodity price volatility challenges profitability, especially as crude prices dipped in the third quarter.
(You can read the full research report on Exxon Mobil here >>>)
Costco’s shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+43.3% vs. +23.6%). The company being a consumer defensive stock, Costco has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth.
These factors have been helping it register decent sales and earnings numbers. The Zacks analyst expects Costco to register an 11.5% adjusted earnings per share improvement in fiscal 2025 on 6.6% revenue growth. This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates.
A favorable product mix, steady store traffic, pricing power, and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.
(You can read the full research report on Costco here >>>)
Shares of Flanigan's have underperformed the Zacks Retail - Restaurants industry over the past year (-3.1% vs. +6.3%). This microcap company with market capitalization of $46.45 million is facing risks which include a 16.1% net income decline, inflation-driven margin pressure, flat franchise revenue and geographic concentration. Regulatory challenges, high competition and limited diversification further weigh on prospects.
Nonetheless, the package store segment and steady rental income provide stability. Flanigan's achieved 7.9% revenue growth to $188.3 million in fiscal 2024 from $174.4 million in the prior year, driven by a 6.3% rise in restaurant sales and 15.1% growth in package store sales, showcasing a diversified revenue model.
Geographic expansion opportunities, resilient operations amid cost pressures, and rising dine-in demand position the company for long-term growth. Operational efficiencies help combat rising costs, while digital transformation and menu innovation could enhance customer experience and loyalty.
(You can read the full research report on Flanigan's here >>>)
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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 Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.
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
