Tuesday, June 13, 2023

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 Apple Inc. (AAPL), UnitedHealth Group Incorporated (UNH) and Eli Lilly and Company (LLY). 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 >>>

Apple shares have outperformed the Zacks Tech sector (+40.4% vs. +34.9%) as well as the broader market (+40.4% vs.  +14.1%) this year. The company is benefiting from steady demand for iPhone 14 and 14 Plus as well as expanding footprint in emerging markets. Growing services subscriber base and improving customer engagement are tailwinds for the services business.

Apple is expanding service offerings with the new features and enhancements in its upcoming iOS 17, iPadOS 17, macOS Sonoma, watchOS 10, and tvOS 17. Expanding content on Apple TV+ bodes well for Apple. Growing footprint in enterprise market is encouraging.

However, services’ revenue growth in the fiscal third quarter is expected to be similar to the fiscal second quarter. Apple expects services to be negatively impacted by challenging macroeconomic conditions, as well as continued weakness in digital advertising and mobile gaming.

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

Shares of UnitedHealth have gained +8.2% over the past year against the Zacks Medical - HMOs industry’s gain of +10.0%. Company’s top line remains well-poised for growth on the back of a strong market position, new deals, renewed agreements, and expansion of service offerings.

The Zacks analyst expect the top line to grow 11.1% year over year in 2023. Its solid health services segment provides diversification benefits. The Government business remains well-poised for growth. A sturdy balance sheet enables business investments and prudent deployment of capital.

However, membership in its global business continues to decline. High operating costs are hurting margins. As such, the stock warrants a cautious stance.

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

Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+55.0% vs. +19.1%). The company boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Trulicity, Taltz and others. It is regularly adding promising new pipeline assets through business development deals.

Lilly expects to launch four new medicines by 2023 end with Mounjaro for type II diabetes and cancer drug Jaypirca already launched. Mounjaro sales are already benefiting from strong demand trends.

However, the CRL for donanemab will probably delay the potential launch of the candidate. Generic competition for several drugs, rising pricing pressure in the United States and some international markets are some top-line headwinds.

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

Other noteworthy reports we are featuring today include Walmart Inc. (WMT), Intel Corporation (INTC) and Becton, Dickinson and Company (BDX).

Director of Research

Sheraz Mian

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>>>