Costco(COST) ZACKS·2025-01-23 09:51Group 1: Eli Lilly and Co. (LLY) - Eli Lilly's shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year, with a growth of 18.2% compared to a decline of 1.7% in the industry [4] - The demand for Eli Lilly's GLP-1 drugs, Mounjaro and Zepbound, remains strong, contributing significantly to top-line growth in 2024 [4] - However, sales of Mounjaro and Zepbound were disappointing in the second half of 2024, raising concerns about moderating demand [5] - Declining sales of Trulicity and rising pricing pressure on some drugs are notable headwinds for the company [5] Group 2: Exxon Mobil Corp. (XOM) - Exxon Mobil's shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year, with a growth of 19.6% compared to 14.5% in the industry [6] - The company's high-value assets in the Permian Basin and Guyana have driven robust production growth, doubling upstream earnings since 2019 [6] - Refining margins are pressured due to global capacity increases, leading to softening refining profits [8] - Commodity price volatility poses challenges to profitability, especially with crude prices dipping in the third quarter [8] Group 3: Costco Wholesale Corp. (COST) - Costco's shares have outperformed the Zacks Retail - Discount Stores industry over the past year, with a growth of 43.3% compared to 23.6% in the industry [9] - The company is expected to register an 11.5% adjusted earnings per share improvement in fiscal 2025, driven by 6.6% revenue growth [10] - Key strengths include strategic investments, a customer-centric approach, and a focus on membership growth [9][10] - Costco's favorable product mix and strong liquidity position are expected to help it continue outperforming [11] Group 4: Flanigan's Enterprises, Inc. (BDL) - Flanigan's shares have underperformed the Zacks Retail - Restaurants industry over the past year, with a decline of 3.1% compared to a growth of 6.3% in the industry [12] - The company faced a 16.1% net income decline and inflation-driven margin pressure [12] - Despite challenges, Flanigan's achieved 7.9% revenue growth to $188.3 million in fiscal 2024, driven by a rise in restaurant and package store sales [13] - Geographic expansion opportunities and operational efficiencies position the company for long-term growth [14]