Monday, July 18, 2022
 
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 Equinor ASA (EQNR). 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 gained +3.6% over the past year against the Zacks Tech sector's -24.7% decline and the S&P 500 index's -9.9% decline. The company is benefiting from continued momentum in the Services and robust performance from iPhone, Mac, Wearables, and an expanding App Store ecosystem.

Nevertheless, the availability of new Mac Studio and new iPad Air is expected to drive top-line growth. Apple TV+ is gaining recognition due to award-winning shows. This bodes well for the Services segment. Services revenue growth is expected to be in strong double digits for the June quarter.

However, Apple did not provide revenue guidance for the third quarter of fiscal 2022. Apple expects COVID-induced supply chain disruptions and industry-wide silicon shortages to hurt the top line along with Unfavourable forex condition is also expected to hurt its revenues. The absence of Russian revenues will also hurt the top line.

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

UnitedHealth shares have outperformed the Zacks Medical - HMOs industry over the past year (+31.2% vs. +26.6%). The zacks analyst believes that the company’s top line has been growing and the momentum should continue in the years ahead on the back of a strong market position and an attractive core business that continues to be driven by new deals, renewed agreements and expansion of service offerings.

For this year, the company expects revenues in the range of $317-$320 billion. Its solid health services segment provides diversification benefits. The firm's government business remains well-poised for growth. A sturdy balance sheet enables investments and prudent capital deployment through share buybacks and dividends.

However, softness in commercial business due to COVID-induced volatilities persists. Also, the rising operating costs are hurting UnitedHealth’s bottom line. As such, the stock warrants a cautious stance.

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

Equinor shares have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past year (+75.4% vs. +46.2%). The company is one of the premier integrated energy companies, with operations spreading across 30 countries. In 2021, the company completed 21 exploration wells, with 8 commercial discoveries.

Equinor announced significant oil discoveries at the Johan Castberg field in the Barents Sea, which will further increase its profitability in the field. To combat climate change, the company is actively investing in renewable energy projects, comprising power generation from solar and wind energy. For 2022, Equinor announced the increase of the share buy-back program of up to $5 billion.

However, the company’s significant exposure to debt can affect its financial flexibility. Also, it is not being able to capture the potential profit growth from commodity prices that have reached record highs. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include QUALCOMM Incorporated (QCOM), GSK plc (GSK) and Eaton Corporation plc (ETN).

Sheraz Mian
 
Director of Research

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>>>