Yahoo Finance Top Analyst Reports for Apple, Verizon & Amgen
Monday, July 3, 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), Verizon Communications Inc. (VZ) and Amgen Inc. (AMGN). 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 been standout perfomers this year, outperforming the Zacks Tech sector ((+47.9% vs. +37.3%) and the S&P 500 index (+47.9% vs. +16.9). 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 Verizon have declined -6.6% over the past six months against the Zacks Wireless National industry’s decline of -7.2%. The company has reiterated its soft guidance for 2023 due to a challenging macroeconomic environment. Continued retail prepaid and postpaid net losses are hindering the top line of the company. Stiff competition from other major players and saturation in the U.S. wireless market is hurting profits.
Heavy spending on promotional activities to attract customers is also weighing on margins. Nevertheless, Verizon is witnessing significant 5G adoption and fixed wireless broadband momentum. It is offering various mix and match pricing in both wireless and home broadband plans that has led to solid customer additions.
Strong demand for Fios and fixed wireless products are tailwinds. Verizon’s mmWave footprint delivers game-changing experience for the densest parts of the network and offers reliable signal waves with enhanced efficiency and less interference.
(You can read the full research report on Verizon here >>>)
Amgen shares have declined -6.5% over the past year against the Zacks Medical - Biomedical and Genetics industry’s decline of -7.1%. While the company’s key drugs like Prolia, Repatha and Evenity are driving sales, increasing competition for its legacy products is hurting the same.
Amgen is rapidly advancing its robust oncology and immunology pipeline. Several data readouts are expected in the second half of 2023. Amgen boasts a strong biosimilars portfolio with potential new products expected to drive long-term growth.
However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products, including some biosimilars. Increasing biosimilar competition for some legacy products and weakness in key brands like Otezla and Lumakras create potential revenue headwinds.
(You can read the full research report on Amgen here >>>)
Other noteworthy reports we are featuring today include The Charles Schwab Corporation (SCHW), Marsh & McLennan Companies, Inc. (MMC) and The Cigna Group (CI).
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>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Verizon (VZ) Rides on Wireless Taction, Customer Additions
Amgen (AMGN) Rapidly Advancing Pipeline Development
Featured Reports
Strategic Acquisitions Aid Schwab (SCHW) Amid Cost Concerns
Per the Zacks analyst, while Schwab's inorganic growth initiatives & other revenue diversification efforts will aid profits, it might lead to higher costs, thus hurting the bottom line to an extent.
Rising Revenues Aid Marsh & McLennan (MMC) Amid High Expenses
Per the Zacks analyst, the company's increasing top line, courtesy of diverse product offerings and solid client retention rate has led to significant growth. However higher costs might hamper margins
Cigna (CI) Benefits from Growing Membership, High Costs Hurt
Per the Zacks analyst, Cigna gains from improving membership and solid performances of Evernorth Health Services and Cigna Healthcare businesses. However, rising costs are a concern.
CSX's Dividend Payouts Boost Prospects Amid Fuel Cost Woes
The Zacks analyst is impressed by CSX's efforts to reward its shareholders. However, high operating expenses, mainly due to elevated fuel costs, are hurting its bottom line.
Uniform Rental Unit Aids Cintas (CTAS) Amid Cost Woes
The Zacks analyst is encouraged by strength in the Uniform Rental and Facility Services unit due to increased volumes and higher prices. However, escalating cost of sales is worrisome.
Strong End Markets Aid Avantor (AVTR) Amid Stiff Competition
The Zacks analyst is upbeat about Avantor's continued strength in its end markets and product groups despite its operation in a highly competitive market.
Acquisitions to Aid Heico (HEI), Supply Chain Issue Woes
Per the Zacks analyst, disciplined acquisition strategy has been driving Heico's overall performance. However, supply chain disruptions have been impacting the company's material prices
New Upgrades
Energy Drinks Category Aids Growth at Monster Beverage (MNST)
Per the Zacks analyst, Monster Beverage is experiencing continued strength in its energy drinks category driven by its Monster Energy brand. This is likely to continue throughout 2023.
Marriott (MAR) Likely to Gain From Robust Expansion Efforts
The Zacks analyst believes that Marriott's efforts to expand its footprint and improving demand bode well. At the end of first-quarter 2023, Marriott's development pipeline totaled 3,060 hotels.
Strong Demand & Higher Prices Aid Carpenter Technology (CRS)
Per the Zacks analyst, Carpenter Technology is gaining from strong demand across its end-use markets. Higher prices and the company's efforts to preserve liquidity are also driving growth.
New Downgrades
Heavy Dependence on Large Customers to Hurt Liberty (LBRT)
The Zacks analyst believes that with top four customers contributing some 40% to Liberty Energy's revenues, it is susceptible to financial strain from the potential loss of one of these key clients.
Dismal Comps Performance Hurts Signet's (SIG) Top Line
Per the Zacks analyst, Signet has been reeling under soft demand in jewelry category. As a result, comps declined 13.9% thus hurting the top line performance in Q1.
Soft Office Demand, High Interest Rates Hurt Vornado (VNO)
Per the Zacks analyst, a choppy United States office market and a high interest rate environment are expected to weigh on Vornado's growth in the near term.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
Cigna Group (CI) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
