Core Viewpoint - Eli Lilly and Company is facing challenges due to global uncertainties and competitive dynamics, but it has strong growth prospects driven by its key products Mounjaro and Zepbound, alongside a robust pipeline of new drugs. Group 1: Stock Performance and Market Dynamics - Eli Lilly's shares have declined by 8.2% in the past month, largely due to global uncertainties from the tariff war and fears of a recession [1] - The stock has outperformed the industry, which has decreased by 4.1%, and the S&P 500 index [15][26] - Despite a 1.7% decline in stock price this year, Lilly's market cap exceeds $700 billion, reflecting a 420.3% increase over the past five years [26] Group 2: Product Performance and Sales Growth - Mounjaro and Zepbound generated combined sales of $16.5 billion in 2024, accounting for approximately 36% of total revenues [3] - Sales growth of Mounjaro and Zepbound was impacted by supply and channel dynamics in the second half of 2024, raising concerns about demand [4] - Lilly expects to launch Mounjaro in new international markets in 2025, which is anticipated to boost sales [6] Group 3: New Drug Approvals and Pipeline - The FDA approved Zepbound for a second indication, which is expected to drive sales higher [7] - Lilly has gained approvals for several new drugs, including Omvoh and Jaypirca, contributing significantly to top-line growth in 2024 [8] - The company is making rapid progress in its pipeline, with several mid to late-stage readouts expected in 2025 [9] Group 4: Competitive Landscape - The obesity market is projected to expand to $100 billion by 2030, with Lilly and Novo Nordisk currently dominating [10] - Several companies, including Amgen and Viking Therapeutics, are developing GLP-1-based candidates that could pose competition to Lilly's products [12] - Other pharmaceutical companies are also entering the obesity space, which may threaten Lilly's market position [14] Group 5: Financial Outlook and Shareholder Returns - Lilly expects revenues in the range of $58.0 billion to $61.0 billion in 2025, indicating a 32% year-over-year growth [27] - The company returned $3 billion to shareholders in 2024 through share repurchases and dividends, and has approved a new $15 billion stock buyback plan [29]

Core Viewpoint - Jefferies analyst Edison Lee upgraded Apple Inc from Underperform to Hold, lowering the price target from $202.33 to $167.88, citing potential exemption from U.S. tariffs due to a $500 billion investment commitment in the U.S. over the next four years, while also noting risks from a rising global recession impacting iPhone demand [1] iPhone Shipment and Revenue Forecasts - iPhone shipment forecasts were reduced by 3.6% for fiscal 2025, 7.7% for fiscal 2026, and 5.5% for fiscal 2027, leading to revenue cuts of 2% for fiscal 2025, 4.1% for fiscal 2026, and 3.5% for fiscal 2027 [2] Pricing Strategy and EPS Projections - A $50 price increase for iPhone 18 in 2026 (excluding the base model) and a $100 increase for iPhone 19 in 2027 (all models) were included, driven by higher hardware costs, with EPS projections for fiscal 2025, 2026, and 2027 now below consensus by 2.5%, 8.5%, and 3.4% respectively [3] AI Challenges in Smartphones - Two main challenges for AI in smartphones were identified: a lack of fast DRAM and advanced packaging solutions, limiting AI model size, and limited access to app data, affecting understanding of user habits [4][5] AI Revenue Forecast Adjustments - AI revenue forecasts for fiscal 2028 were cut, using only the installed base of iPhone 19 and lower penetration rates, resulting in EPS forecast reductions of 18% to 19% for fiscal 2028 to fiscal 2031 [6] Valuation and Tariff Impact - Even with a potential exemption from U.S. tariffs, Apple's valuation at 2.2 times fiscal 2025 PEG is considered high; if tariffs are imposed, EPS impacts for fiscal 2025 and 2026 could be 14% and 12%, respectively, with DCF dropping to $150, and under a 104% tariff scenario, EPS impacts could rise to 26% and 21%, with DCF falling to $126 [7] Current Stock Performance - Apple stock was reported down 5.83% to $187.25 as of the latest check [8]

Core Viewpoint - Pfizer's stock has faced significant volatility, hitting a 52-week low of $20.92, primarily due to global uncertainties from the tariff war and potential tariffs on pharmaceuticals [1][2]. Financial Performance - Sales of Pfizer's COVID products, Comirnaty and Paxlovid, are projected to decline to approximately $11 billion in 2024 from $56.7 billion in 2022, with similar revenues expected in 2025, excluding one-time benefits [4]. - Non-COVID operational revenues improved by 12% in 2024, surpassing the guidance range of 9-11%, driven by key products and acquisitions [5]. - Pfizer's oncology revenues grew 26% operationally in 2024, contributing around 25% to total revenues, supported by successful drugs and a strong pipeline [7]. Market Position - Pfizer's stock has underperformed the industry, declining 13.8% year-to-date compared to a 7.6% decrease for the industry [8][9]. - The stock is trading at a price/earnings ratio of 7.55, significantly lower than the industry average of 14.37 and its 5-year mean of 11.05, indicating an attractive valuation [12]. Future Outlook - The Zacks Consensus Estimate for 2025 earnings has slightly increased from $2.95 to $2.98 per share, while the estimate for 2026 has decreased from $3.03 to $2.99 [15]. - Pfizer anticipates cost savings of at least $6 billion from restructuring, which, along with growth in non-COVID sales, is expected to drive profit growth [20]. - The company returned $9.5 billion to shareholders through dividends in 2024, resulting in a dividend yield of around 7.6%, well above the industry average [21]. Investment Considerations - With the stock at new lows, it may present a buying opportunity for long-term gains, appealing to both value and income investors due to its low valuation and high dividend yield [24].

Core Viewpoint - Walmart has maintained its full-year sales and income growth forecasts despite concerns over President Trump's tariffs, indicating confidence in its ability to manage through economic turbulence [1][4][10] Sales and Income Forecast - The company expects sales for the fiscal year ending January 2026 to rise between 3% and 4%, with annual adjusted operating income projected to increase between 3.5% and 5.5% [5] - Walmart has kept its first-quarter sales forecast intact, but the range of outcomes for first-quarter operating income growth has widened due to the impact of tariffs [6][8] Impact of Tariffs - As the largest US importer of containerized goods, Walmart is at risk from tariffs primarily affecting imports from Asian countries, including a 104% duty on Chinese goods [4][10] - Approximately 60% of Walmart's imports come from China, with Vietnam also being a significant supplier [10] Management Strategy - CEO Doug McMillon emphasized the company's focus on keeping prices low and managing inventory and expenses effectively [5][8] - The company has been negotiating with suppliers regarding price hikes to mitigate the effects of tariffs on incoming goods [6][11] Market Conditions - Sales performance has been variable, with general merchandise sales reported as soft early in the quarter, making operating income harder to predict [9]