Yahoo Finance Zacks Investment Ideas feature highlights: Eaton, Eli Lilly and Arista Networks
For Immediate Release
Chicago, IL – May 10, 2024 – Today, Zacks Investment Ideas feature highlights Eaton ETN, Eli Lilly LLY and Arista Networks ANET.
3 Stocks to Buy Following Guidance Upgrades
Earnings season continues to roll along, with a solid chunk of companies already posting quarterly results. The period has primarily remained positive, underpinned by strong results from the technology sector. We've also seen positive revisions trickle in for the upcoming period.
Concerning the positivity, several companies, including Eaton, Eli Lilly and Arista Networks all raised their outlooks, undoubtedly pleasing investors. Let’s take a closer look at each.
Eaton
Eaton posted EPS of $2.40 and sales of $5.9 billion, reflecting quarterly records. Further, segment margins reached 23.1%, another quarterly record and reflecting a 340-basis-point climb from the same period last year.
The company topped off the robust results with positive guidance, raising its outlook for organic growth, segment margins, and EPS. Analysts have taken their earnings expectations higher along with the upgraded guidance, landing the stock into a favorable Zacks Rank #2 (Buy).
Income investors could also find ETN shares attractive, currently yielding 1.1% on an annual basis. While the current yield may not be that impressive, the company’s 5.4% five-year annualized dividend growth rate reflects consistently higher payouts.
Eli Lilly
Eli Lilly posted EPS of $2.58 and sales of $8.8 billion, with earnings soaring 46% from the year-ago period. Revenue throughout the period grew 26% year-over-year, driven by strong demand within Mounjaro, Zepbound, Verzenio, and Jardiance.
LLY upped its full-year revenue guidance by $2 billion, further displaying the strong demand being witnessed. Analysts modestly trimmed their earnings outlook for the upcoming period but have otherwise kept revisions positive, particularly for its current fiscal year.
Arista Networks
Concerning headline figures, ANET posted a 14% beat relative to the Zacks Consensus EPS estimate and reported sales 1.3% ahead of expectations, with both items showing growth relative to the year-ago period.
The company upped its current year (FY24) revenue growth guidance into a band of 12% - 14%, causing shares to soar post-earnings. The company also authorized an additional $1.2 billion stock repurchase, further adding to the fireworks.
Analysts have revised their earnings expectations accordingly, with the stock holding a favorable Zacks Rank #2 (Buy).
Bottom Line
Guidance lifts are among the most positive announcements shareholders can hear, injecting confidence in the long-term picture.
And recently, all three companies above have raised their outlooks, with shares moving higher following the announcements.
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Eli Lilly and Company (LLY) : Free Stock Analysis Report
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
