Calls of the Day: AutoZone, Roblox, Eli Lilly, Johnson & Johnson and Quanta Services

Key Concepts:

• AutoZone: Beneficiary of aging auto fleet and potential tariff impact.
• Roadblocks (Likely referring to Roku): High daily active users (DAUs), free cash flow growth.
• Eli Lilly: Weight loss drug market, total addressable market (TAM), potential competition.
• Johnson & Johnson (J&J): Bladder cancer treatment, product pipeline, earnings growth.
• Eaton: Strong quarterly performance, backlog, guidance increase.

AutoZone:

• Oppenheimer upgraded AutoZone to outperform.
• Rob owns the stock and considers it a long-term holding.
• Tariffs on auto parts are beginning tomorrow.
• AutoZone is described as an exceptionally high-quality company with a great management team and capital efficiency.
• The company benefits from an aging auto fleet, as consumers repair vehicles instead of replacing them due to tariffs.

Roadblocks (Roku):

• Barclays' target price of 62 is considered too low based on the stock's trading.
• The company controls a lot of eyeballs.
• Daily active users (DAUs) were up 26% to nearly 98 million.
• Free cash flow is doubling.
• Guidance was raised.

Eli Lilly:

• Wells Fargo is defending Eli Lilly, with Stephanie reiterating an overweight rating.
• The Lily weakness is seen as a buying opportunity, as it's considered too early to worry about a price war.
• Trends have been good, and they see upside.
• The total addressable market (TAM) is estimated to be easily $100 billion by 2031.
• It's projected that one in every ten Americans will be on weight loss drugs by 2033.
• Eli Lilly is considered the best in the business.

Johnson & Johnson (J&J):

• Goldman Sachs reiterated their bullish stance on J&J.
• They are optimistic about J&J's treatment for bladder cancer.
• The bladder cancer treatment is expected to drive outperformance and help with other products.
• J&J has a great product pipeline.
• The stock is trading at 15 times earnings.
• The company has a strong balance sheet.
• They have separated some of their other businesses.
• The company is expected to have a great down-the-road earnings growth rate.

Eaton:

• Truist raised the price target to 375 from 324.
• The stock was up 10% yesterday.
• Eaton had a great quarter, beating earnings, EBITDA, and revenues.
• They guided higher.
• They had a record backlog.

Synthesis/Conclusion:

The segment highlights positive outlooks for several companies across different sectors. AutoZone benefits from an aging auto fleet and potentially from tariffs. Roku is experiencing strong growth in daily active users and free cash flow. Eli Lilly is positioned to capitalize on the expanding weight loss drug market. Johnson & Johnson has a promising bladder cancer treatment and a strong product pipeline. Eaton delivered a strong quarterly performance with a record backlog.