Thursday, May 11, 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 UnitedHealth Group Inc. (UNH), Merck & Co., Inc. (MRK) and Texas Instruments Inc. (TXN). 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 UnitedHealth Group have gained +3.8% over the past year against the Zacks Medical - HMOs industry’s gain of +5.7%. 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 Group’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.

However, the 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 Group here >>>)

Merck’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+33.7% vs. +16.5%). Company’s products like Keytruda and Gardasil have been driving sales. With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver.

Animal health and vaccine products are core growth drivers. Merck boasts a strong cancer pipeline, including Keytruda, which should drive long-term growth. Merck is investing in M&A activity to strengthen its pipeline.

However, generic competition for several drugs and rising competitive pressure, mainly on the diabetes franchise, will continue to be overhangs on the top line. There are concerns about Merck’s ability to grow its non-oncology business ahead of Keytruda’s loss of exclusivity later in the decade.

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

Shares of Texas Instruments have gained +1.1% over the past year against the Zacks Semiconductor - General industry’s gain of +35.0%. Growing demand for embedded technologies across the automotive and industrial markets contributed well. Additionally, continued rebound in the automotive market was a tailwind.

The Zacks analyst believes that the company’s growing investments in new growth avenues and competitive advantages remain tailwinds. Further, its portfolio of long-lived products and efficient manufacturing strategies are other positives.

However, sluggishness in the Analog segment remains a concern. Further, weakening momentum across personal electronics and communication equipment end-markets is a negative. Additionally, pandemic-led supply-chain disruptions and imposition of new export regulations are headwinds.

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

Other noteworthy reports we are featuring today include The TJX Companies, Inc. (TJX), The Southern Co, (SO) and Johnson Controls International plc (JCI).

Senior Editor
Mark Vickery

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>>>