Thursday, January 4, 2024

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 Exxon Mobil Corporation (XOM). 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’s shares have essentially moved sideways to down since July 2023, but they have performed roughly in-line with the Zacks Tech sector over the past year (+41.6% vs. +45.1%) and handily outperformed the broader market's +22% gain. 

The company is benefiting from strong demand for iPhone. Apple expects the iPhone’s year-over-year revenues to grow on an absolute basis in first-quarter fiscal 2024.

Revenues for Mac are expected to significantly accelerate compared with the fourth-quarter fiscal 2023’s reported figure. It expects the year-over-year revenue growth for both iPad and Wearables, Home and Accessories to decelerate significantly from the September quarter due to a different timing of product launches.

For the Services segment, Apple expects average revenues per week to grow at a similar strong double-digit rate as it did during the September quarter. It is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ aids subscriber growth.

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

Shares of UnitedHealth have outperformed the Zacks Medical - HMOs industry over the past year (+12.3% vs. +9.8%). 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. The company’s solid health services segment provides diversification benefits.

The Government business remains well-poised for growth. Adjusted net earnings per share are anticipated in the $24.85-$25.00 band in 2023, the midpoint of which indicates a 12.3% rise from the 2022 figure. A sturdy balance sheet enables business investments and prudent deployment of capital via share repurchases and dividend payments.

However, membership in its global business continues to decline. High operating costs due to rising medical expenses are hurting margins. As such, the stock warrants a cautious stance.

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

Exxon Mobil shares have underperformed the Zacks Energy sector over the past year (-7.9% vs. -0.7%), but they have held up better than Chevron's -15.5% decline over the same time period.  The energy giant’s financials were weakened by years-long significant spending on low-return developments and the coronavirus pandemic. Also, high input cost is hurting refining operations.

Nevertheless, this bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play. In Stabroek Block, located offshore Guyana, ExxonMobil has made many major discoveries that significantly improve its production outlook.

The advantaged growth projects of Guyana have lower greenhouse gas intensity than most of the oil and gas-producing resources across the globe. ExxonMobil’s deal to acquire Pioneer Natural will bolster its presence in the prolific Permian Basin.

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

Other noteworthy reports we are featuring today include Amgen Inc. (AMGN), The Boeing Company (BA) and AT&T Inc. (T).

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>>>