Top Stock Reports for Apple, Amgen & Becton, Dickinson
Friday, October 20, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Apple Inc. (AAPL), Amgen Inc. (AMGN) and Becton, Dickinson and Company (BDX). 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 outperformed the broader market this year (+34% vs. +12.8% for the S&P 500 index) and roughly matched the Zacks Tech sector (+34% vs. +34.8%). The company expects iPhone and Services’ year-over-year growth to accelerate in the fiscal fourth quarter compared with the June quarter.
Apple launched four new iPhone models at its product launch event on Sep 12. Demand for the high-end iPhone 15 Pro Max is strong as shipment delivery has reportedly slipped to mid-November. It also upgraded Airpods and made iOS 17, watchOS 10, iPadOS 17 and tvOS 17 available.
Apple is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and robust adoption of Apple Pay and Apple Arcade are helping drive subscriber growth.
However, revenues for both Mac and iPad are expected to decline double digits on a year-over-year basis in the fiscal fourth quarter due to difficult comparisons.
(You can read the full research report on Apple here >>>)
Shares of Amgen have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+9.7% vs. -20.4%). The company expects strong sales growth of products like Tezspire, Evenity, Repatha, Prolia and Tavneos to be offset by lower revenues from oncology biosimilars and legacy established products such as Enbrel in the future quarters.
The recently completed acquisition of Horizon Therapeutics is expected to enhance Amgen’s growth prospects. Amgen also has some key pipeline assets in obesity and inflammation, which are indications that can have a large market opportunity. Several data readouts are expected in the next 12 months.
However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products, including some biosimilars. Weakness in some key brands like Otezla and Lumakras create potential revenue headwinds. Estimate movements have been mixed ahead of Q3 results.
(You can read the full research report on Amgen here >>>)
Shares of Becton, Dickinson have gained +2.4% over the year-to-date period against the Zacks Medical - Dental Supplies industry’s gain of +12.2%. The company continued focus on research and development (R&D) and its progress toward meeting its BD 2025 strategy raises optimism.
The company’s divestiture of its surgical instruments platform to support the achievement of its BD 2025 financial goals and further advance the BD Interventional segment’s focus on high-growth end markets looks promising.
Regulatory approvals and product launches over the past few months are also encouraging. Yet, BD’s operation in a significantly consolidated and competitive medical technology industry is worrying. Lower COVID-only testing revenues are discouraging from a business perspective. Forex volatility prevails.
(You can read the full research report on Becton, Dickinson here >>>)
Other noteworthy reports we are featuring today include UnitedHealth Group (UNH), MPLX LP (MPLX) and Verisk Analytics (VRSK).
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
Robust Portfoliou, Services Strength to Benefit Apple (AAPL)
Amgen (AMGN) Makes Rapid Progress on Solid Pipeline
Continued Focus on R&D Aids BD (BDX) Amid Stiff Competition
Featured Reports
Solid Membership Drives UnitedHealth (UNH), High Costs Hurt
Per the Zacks analyst, sustained membership growth in its UnitedHealthcare business and expansion of care services will fuel UnitedHealth's top-line growth. However, high operating expenses are a woe.
Verisk (VRSK) to Gain From Opta Buyout, Low Liquidity Ail
Per the Zacks analyst, the Opta acquisition is expected to expand Verisk's footprint in the Canadian market. Security breaches may expose the company to operational risks.
Sysco's (SYY) Focus on Recipe For Growth Program Bodes Well
Per the Zacks analyst, Sysco is on track with Recipe for Growth program to drive growth. The program will enable the company to grow 1.5 times faster than the market by FY24's end.
Discover Financial (DFS) Aided by Rising Interest Income
Per the Zacks Analyst, growth in net interest income and non-interest income has contributed to the company's top line. Its robust capital position remains a key catalyst.
Strategic Acquisitions Aid Builders FirstSource (BLDR)
Per the Zacks analyst, Builders FirstSource is benefiting from strategic acquisitions and cost synergies. Also, strong value-added product portfolio bodes well.
New Upgrades
MPLX's Stable Fee-Based Revenue From Long-Term Contracts Aid
Per the Zacks analyst, MPLX boasts stable revenues from diverse midstream energy assets via long-term contracts. The partnership is also committed to returning capital to shareholders.
Strong Sales for Nerlynx Aid Puma Biotech's (PBYI) Revenues
Per the Zacks analyst, Puma Biotech's cancer drug, Nerlynx, is witnessing consistent sales growth in the United States. The acquisition of alisertib also holds promise as it possess huge potential
New Downgrades
J&J (JNJ) Talc Litigation Uncertainty Still Looms
The Zacks analyst believes that though J&J has taken meaningful steps to resolve its talc and opioid litigation, uncertainty exists regarding the talc litigations.
Supply Chain Issues and Rising Cost Hit SolarEdge
Per the Zacks analyst, constraints in the global transportation system may continue to disrupt SolarEdge's logistics supply chain that tend to increase its ocean freight cost and hamper its earnings
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
MPLX LP (MPLX) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
