Editor's Note:This Week's Bullish Stocks in Hong Kong and USAThe column closely follows market dynamics each week, reviewing the weekly performance of Hong Kong and U.S. stock markets, helping mooer to sort out the hot sectors, strong individual stocks, and significant news of the week, looking for investment themes with profit potential.
By the close on Thursday, the three major Indexes experienced overall fluctuations and declines this week.$Dow Jones Industrial Average (.DJI.US)$Cumulative decrease of 2.66%, closing at 39,142.23 points; during the same period.$S&P 500 Index (.SPX.US)$Cumulative decrease of 1.5%, closing at 5,282.7 points; $Nasdaq (NDAQ.US)$ A cumulative decline of 2.62% was reported, with the index at 16,286.45 points.
Specifically concerning individual stocks, one of the "two giants of weight loss drugs" is $Eli Lilly and Co (LLY.US)$ On Thursday, stock prices soared over 14%, with the company's oral weight loss drug Orforglipron performing excellently in phase three clinical trials. This week, Eli Lilly and Co's stock price has increased nearly 15%.
On Thursday local time, Eli Lilly and Co, one of the 'two giants of weight loss drugs,' announced positive phase three trial results for its daily oral GLP-1 drug Orforglipron aimed at adults with type 2 diabetes. Data shows that participants taking Orforglipron lost an average of 16 pounds after 40 weeks, approximately 7.9% of their body weight, which exceeded Eli Lilly's previous expected weight loss range of 4% to 7%. In contrast, Novo-Nordisk A/S's star product Ozempic only resulted in about a 6% weight loss for diabetic patients at the highest dose.
Jared Holz, a healthcare expert at Mizuho Securities, stated that Eli Lilly will maintain its outstanding position in this category for quite a while, as its advantages over competitors in the pharmaceutical and biotechnology fields are expanding based on these data. Wall Street analysts generally believe that the GLP-1 weight loss drug sector is shifting from injectable forms to convenient oral forms, and Eli Lilly has already gained an early lead. This fierce, years-long competition has shown a clear winner, at least for now, with Eli Lilly being crowned the new king in the GLP-1 drug field by the market.
Q1 performance exceeded expectations! Swedish telecom giant $LM Ericsson Telephone (ERIC.US)$ This week, it surged over 12%, with demand for 5G equipment boosting profits.
LM Ericsson Telephone released its Earnings Reports on Tuesday, showing that its first quarter profits significantly exceeded market expectations, driven by Global mobile operators increasing their procurement of 5G equipment. However, the company also warned that tariff policies may put pressure on its Business in the second half of the year.
According to the announcement, the company's adjusted EBIT for the first quarter reached 6.21 billion Swedish Krona (approximately 0.636 billion USD), significantly surpassing the analyst consensus estimate of 5 billion Swedish Krona; the adjusted gross margin for the quarter increased to 48.5%, also higher than the analyst expectation of 45.9%. The company stated that it expects the tariff policy to have an adverse impact of about 1 percentage point on its network business, while forecasting that the adjusted gross margin in the second quarter will maintain a range between 48% and 50%.
The largest telecommunications operator in Latin America.$America Movil SAB de CV (AMX.US)$This week, it has accumulated a surge of nearly 14%, expected to benefit from the positive shift in valuation in the Mexican market.
On Monday, HSBC Analyst Madhvendra Singh raised the rating of America Movil from "Hold" to "Buy", increasing the Target Price from $15.50 to $17.50. HSBC expects a positive shift in valuation in the Mexican market, and America Movil is likely to benefit from it. In 2024, the Mexican region will account for 38% of America Movil's total revenue. Analysts predict that due to the soft macroeconomic environment affecting prepaid and enterprise revenue, America Movil's growth in Mexico may face challenges in 2025, but a recovery is expected by the end of the year.
Analysts point out that although there may be pressure in the short term, the company's growth trajectory is expected to improve by the end of 2025. HSBC has decided to raise the target PE for its Mexico Business from 6.5 times to 7 times, further supporting this positive forecast, indicating that America Movil's valuation of its business in Mexico has increased.
On the other hand, the following Stocks performed weakly this week:
Editor/jayden
