Yahoo Finance Top Research Reports for Eli Lilly, UnitedHealth & Walmart
Tuesday, August 22, 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 Eli Lilly and Company (LLY), UnitedHealth Group Incorporated (UNH) and Walmart Inc. (WMT). 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 >>>
Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+51.6% vs. +10.0%). 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 >>>)
Shares of UnitedHealth have modestly outperformed the Zacks Medical - HMOs industry over the past six months (+2.0% vs. +1.6%). The 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.
UnitedHealth’s 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 via share repurchases and dividends.
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 >>>)
Walmart shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+19.3% vs. +16.6%). The company has been benefiting from its robust omnichannel operations due to its efforts to enhance store and online experience. Walmart has been particularly gaining from its efforts to boost delivery services.
Increased market share in grocery continued to boost U.S. comp sales in the first quarter of fiscal 2024, wherein the top and bottom lines beat the Zacks Consensus Estimate and grew year over year. Strong comp sales growth globally, expense leverage and e-commerce growth across all units were upsides.
Although Walmart raised its guidance for fiscal 2024, its adjusted earnings per share view suggests a decline from the year-ago period figure. The company is battling cost inflation, which is likely to remain elevated. An adverse product mix has also been a downside for margins.
(You can read the full research report on Walmart here >>>)
Other noteworthy reports we are featuring today include Applied Materials, Inc. (AMAT), Zoetis Inc. (ZTS) and BCE Inc. (BCE).
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
Lilly (LLY) New Products Hold Key to Long-Term Growth
Solid Top Line & Strong Cash Flows Drive UnitedHealth (UNH)
Walmart (WMT) Benefits from Impressive E-Commerce Operations
Featured Reports
Pet-Care Products Boost Zoetis (ZTS), Disease Outbreaks A Woe
Per the Zacks Analyst, the companion animal product sales are expected to boost Zoetis in the quarters ahead. Potential supply challenges and disease outbreaks could, however, hurt prospects.
BCE To Benefit From Growing Demand for PureFibre and 5G
Per the Zacks analyst, BCE will benefit from increased demand for its PureFibre and 5G wireless network. Intense competition and high-debt burden remain concerns.
TC Energy's (TRP) C$34B Growth Projects to Boost Earnings
The Zacks analyst believes that TC Energy's C$34 billion in growth projects should support its earnings and dividend payments but is concerned about the enormous debt of C$46.07 billion.
Solid Investments Aid DTE Energy (DTE), Weak Solvency Woes
Per the Zacks analyst, DTE Energy's investment in infrastructure and expansion projects tend to boost its long-term growth prospects. However, its weak solvency position remains a bottleneck.
Hologic Banks on Growing Panthers Instrument, Forex Woes Ail
Per Zacks analyst, Hologic's expanded global installed base of more than 3,250 Panthers instruments, represents the catalyst for the sustained growth. Yet, foreign exchange woes remain a concern.
Higher Affiliate Fees, Growth At Tubi Aids Fox (FOXA)
Per the Zacks analyst, increases in fees from third-party FOX affiliates and continued growth at Tubi is benefiting Fox's overall growth.
MGM Resorts (MGM) Banks on Macao Business to Drive Growth
Per the Zacks analyst, MGM Resorts is likely to benefit from increased business volume and travel activity in Macao region. Also, its focus on asset light strategy and expansion bodes well.
New Upgrades
Applied Materials (AMAT) Rides on Strength in AGS Segment
Per the Zacks analyst, solid adoption of 200-mm systems and strengthening subscription business are benefiting Applied Materials Applied Global Services (AGS) segment.
Ryanair (RYAAY) Benefits From Improving Air-Travel Demand
The Zacks analyst is impressed with the fact that increased air-travel demand is helping Ryanair carry more passengers and witness more revenues.
Strength in Industrial Segment Benefits RBC Bearings (RBC)
Per the Zacks analyst, RBC Bearings' Industrial unit is driven by strength in the food and beverage and general industrial end markets. The company's shareholder-friendly measures are encouraging.
New Downgrades
Macro woes in China, Weak Margins Irk Thermo Fisher (TMO)
The Zacks analyst is worried about Thermo Fisher's performance dented by the macroeconomic challenges, resulting from significant slowdown in the Chinese economy. Declining margins are added concern.
Schneider National (SNDR) Reels Under Lackluster Volumes
The Zacks analyst is worried about below-par volumes due to a weak freight demand scenario. Management has lowered its 2023 earnings per share view due to the weakness.
Revenue Pressure, High Level of Goodwill Hurt Invesco (IVZ)
Per the Zacks analyst, a challenging operating backdrop and macroeconomic headwinds will keep hurting Invesco's top line. The presence of high levels of goodwill on its balance sheet is another woe.
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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
BCE, Inc. (BCE) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
Zoetis Inc. (ZTS) : Free Stock Analysis Report
