Top Stock Reports for Microsoft, Eli Lilly & Lam Research

Monday, January 12, 2026

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Microsoft Corp. (MSFT), Eli Lilly and Co. (LLY) and Lam Research Corp. (LRCX), as well as a micro-cap stock Ampco-Pittsburgh Corp. (AP). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

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You can read today's AWS here >>> Big Week for Data: Q4 Earnings, Inflation Rate

Today's Featured Research Reports

Microsoft’s shares have outperformed the Zacks Computer - Software industry over the past year (+15.8% vs. +11.6%). The company demonstrates strong fundamentals anchored by Azure's 25% cloud market share and strategic AI integration through OpenAI. The company generates exceptional operating cash flows exceeding $100 billion annually with margins above 40%, while diversified revenue across cloud, productivity software, gaming and LinkedIn provides stability.

The Zacks analyst expect fiscal 2026 net sales to grow 15.1% from fiscal 2025. However, Microsoft confronts intense competition from AWS and Google Cloud, escalating regulatory scrutiny, and mounting capital expenditure requirements for AI infrastructure.

Long-term debt of $43.2 billion raises concerns amid rising interest rates, straining financial flexibility. These dynamics create an investment profile balancing robust cash generation against competitive pressures and operational challenges.

(You can read the full research report on Microsoft here >>>)

Shares of Eli Lilly have outperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (+33.6% vs. +20.4%). Demand for the company’s popular GLP-1 drugs Mounjaro and Zepbound remains strong, making them Eli Lilly’s key top-line drivers. Launches of these drugs in new international markets and improved supply from ramped-up production have led to strong sales in 2025.

Other new drugs like Kisunla, Omvoh and Jaypirca are also contributing to its top-line growth. Lilly’s oral GLP-1 obesity pill, orforglipron, is expected to be launched sometime this year. Declining sales of Trulicity, rising pricing pressure on some drugs and potential competition in the GLP-1 diabetes/obesity market are some top-line headwinds. Estimates movement is mixed ahead of Q4 results. Lilly has a mixed record of earnings surprises in recent quarters.

(You can read the full research report on Eli Lilly here >>>)

Lam Research’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past six months (+120.9% vs. +28.3%). The company is riding on its strength across 3D DRAM and advanced packaging technologies. Growing etch and deposition intensity owing to increasing technology inflections in 3D architectures is a plus. A rebound in the System business due to improving memory spending is an upside. 

Strategic investments in research and development activities position it well to capitalize on the growing wafer fab equipment (WFE) spending. Foundry/logic, DRAM and NAND investments are expected to be higher year over year. Solid demand related to high-bandwidth memory is a plus. The Zacks model estimates suggest total revenues are expected to witness a CAGR of 8.5% through fiscal 2026 to 2028. 

However, global spending on mature nodes is likely to remain soft in the near term. Growing trade and tariff tensions between the United States and China are a concern.

(You can read the full research report on Lam Research here >>>)

Shares of Ampco-Pittsburgh have outperformed the Zacks Metal Products - Procurement and Fabrication industry over the past six months (+66.1% vs. +32.3%). This microcap company with a market capitalization of $105.09 million presents a mixed but asymmetric investment case. The ALP unit is benefiting from secular tailwinds in U.S. energy security, nuclear infrastructure and defense, driving record backlog, strong pricing and year-to-date EBITDA growth with visibility into 2026. 

Exiting the loss-making U.K. cast roll operation should deliver $7 million–$8 million in annual EBITDA improvement and support margin expansion. FEP is seeing a favorable mix shift toward higher-margin forged products, aided by reshoring, tariffs and recent capital investments that enhance operating leverage. 

Offsetting these positives are risks like tariff-driven volatility and backlog erosion in FCEP, elevated leverage, weak cash conversion from working capital strain and long-tail asbestos liabilities. Valuation reflects these risks but offers upside if margins translate into sustainable cash flow.

(You can read the full research report on Ampco-Pittsburgh here >>>)

Other noteworthy reports we are featuring today include Marsh & McLennan Companies, Inc. (MMC), Ross Stores, Inc. (ROST) and Cardinal Health, Inc. (CAH).

Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Adoption of Cloud and Office 365 Strength Aid Microsoft (MSFT)

Lilly (LLY) New Drugs to Drive Sales Growth Amid Rising Competition

Lam Research (LRCX) Gains From Strength in Etch and Deposition

Featured Reports

Marsh and McLennan (MMC) Strategic Buyouts Aid, Expenses High
Per the Zacks analyst, multiple acquisitions help Marsh and McLennan expand geographically and diversify its portfolio. However, escalating expenses remain a concern.

Ross' (ROST) Merchandising Push Supports Growth, Costs Hurt
Per the Zacks analyst, merchandising actions drive Ross Stores' buying operation, aiding the purchase of trendy products at attractive prices. Tariff and inflationary pressures are near-term concerns.

Specialty and GMPD Demand Aids Cardinal Health (CAH) Amid Headwinds
Per the Zacks analyst, Cardinal Health is driving growth through specialty pharma, at-home care, and GMPD turnaround, offsetting contract expirations, rising costs and tariff exposure.

Strategic Initiatives Aid Acuity's (AYI) Prospects, Macro Woes Ail
Per the Zacks analyst, Acuity is benefiting from margin expansion driven by pricing and productivity actions, with support from Intelligent Spaces. However, tariff-related costs remain a concern.

Strategic Buyouts to Aid AutoNation (AN) Amid Rising SG and A Costs
While dealership acquisitions are buoying AutoNation's portfolio and revenues, the company's high SG and A expense as a percentage of gross profit remains a concern, per the Zacks analyst.

Transocean (RIG) Buoyed by Strong Revenue Visibility
The Zacks analyst notes that Transocean's backlog of nearly $7 billion provides revenue visibility over multiple years, but its high debt remains a concern.

Olin Gains on Cost Cuts, Epoxy Segment Faces Weakness
Per the Zacks analyst, OLN's margins are improving from its Beyond250 program that is expected to deliver savings through 2026. However, the Epoxy unit remains pressured by weak economic conditions.

New Upgrades

Rosy Passenger Volumes and Cost-Cut Efforts Aid LATAM Airlines (LTM)
The Zacks analyst is impressed by the upbeat traffic attracted by the Latin American carrier. Efforts to control costs are praiseworthy as well.

Diversified Business and SMBs Expansions Aid BILL Holdings (BILL)
Per the Zacks Analyst, BILL Holdings is likely to gain from its diversified business model, expansions into the SMB ecosystem and the adoption of its AI-powered financial operations platform.

Increasing Maintenance, Repair and Overhaul Orders Aid AAR Corp. (AIR)
Per the Zacks analyst, AAR Corp. is likely to benefit from higher demand for maintenance, repair and overhaul services as aircraft usage rises and fleets continue to age.

New Downgrades

Macroeconomic Pressures Hurting Perrigo's (PRGO) Topline Growth
Though Perrigo has initiated several initiatives to lower its costs and improve margins, sales continue to be hurt due to macroeconomic pressures like currency headwinds and inflation.

AST SpaceMobile (ASTS) Plagued by Stiff Competition, Rising Costs
Per the Zacks analyst, growing competition in the satellite connectivity space and rising satellite material prices will likely impede AST SpaceMobile's margins. High valuation remains a concern.

Commercial Real Estate Uncertainty hurts CoStar Group (CSGP) Prospects
Per the Zacks analyst, CoStar Group suffers from challenging macroeconomic conditions and ongoing headwinds in the commercial real estate market.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research