Wednesday, July 12, 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 Visa Inc. (V), 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 >>>

Visa shares have outperformed the Zacks Financial Transaction Services industry over the past year (+18.4% vs. +13.1%). Company’s numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues.

Constant investments in technology are solidifying its position in the payments market. Higher cross-border volumes are boosting the company's results. A shift in payments to the digital mode is a boon for Visa. Steady domestic volumes and transactions rise will aid the firm to boost its top line in the future. A strong cash position enables it to boost shareholder value.

However, high operating expenses stress its margins. Ramped-up client incentives will dent the top line. Its volumes are likely to see diminishing effect of the Russia-Ukraine conflict. As such, it warrants a cautious stance.

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

Shares of UnitedHealth have declined -4.7% over the past six months against the Zacks Medical - HMOs industry’s decline of -5.1%. The company’s membership in its global business continues to decline. High operating costs are hurting margins. As such, the stock warrants a cautious stance.

Nevertheless, UnitedHealth Group’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. 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. Things are likely to improve in future.

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

Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+37.8% vs. +7.3%). The company’s 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. Estimates have declined slightly ahead of Q2 results. Lilly has a mixed record of earnings surprises in the recent quarters.

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

Other noteworthy reports we are featuring today include Costco Wholesale Corporation (COST), Advanced Micro Devices, Inc. (AMD) and HSBC Holdings plc (HSBC).

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>>>