Monday, February 27, 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), Linde plc (LIN) and Marsh & McLennan Companies, Inc. (MMC). 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 >>>

Shares of Apple have roughly matched the broader market over the past year (-10.4% for Apple vs. -10.9% for the S&P 500 index), but handily outperformed the Zacks Tech sector (down - 19.8%).

The Zacks analyst covering Apple expects year-over-year revenue growth to decelerate in the fiscal first quarter compared with the fiscal fourth quarter due to unfavorable forex. Mac revenues are expected to be negatively impacted by forex. Apple expects Mac revenues to decline substantially year over year during the December quarter.

Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, as well as weakness in digital advertising and gaming. Nevertheless, a growing subscriber base in the Services business and a strong liquidity position are key catalysts.

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

Linde shares have outperformed the Zacks Chemical - Diversified industry over the past year (+18.6% vs. +10.3%). The company’s wide range of applications for its industrial gases, Linde is making the world more productive by the day. The company’s primary products in industrial gases include oxygen, which is used as life support in hospitals.

Its process gas, like hydrogen, is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics. Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. In the profitable industrial gas market, the merger of Praxair and Linde has created an efficient player with considerable size advantages.

However, the cost of sales continues to increase, hurting the firm’s bottom line. The firm has mostly been paying a lower dividend yield than the industry’s composite stocks over the past two years.

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

Marsh & McLennan shares have outperformed the Zacks Insurance - Brokerage industry over the past year (+4.3% vs. +3.6%). The company is well-poised to grow on the back of significant investments and acquisitions made within its operating units, the launch of new products and branching out into new businesses.

Its increased stake in Marsh India will further buoy growth. Revenues have been increasing thanks to a wide geographic presence and strong client retention. The Risk and Insurance Services unit has been contributing to revenue growth for a while. MMC had around $4.3 billion left under authorization as of Dec 31, 2022.

However, high operating costs might weigh on the margins. A debt-laden balance sheet is a concern. Its valuation remains stretched at the current level. As such, the stock warrants a cautious stance.

(You can read the full research report on Marsh & McLennan here >>>)

Other noteworthy reports we are featuring today include GSK plc (GSK), Cenovus Energy Inc. (CVE) and Expedia Group, Inc. (EXPE).

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>>>