For Immediate Release
Chicago, IL – December 5, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, IBM Corp. IBM, Elevance Health Inc. ELV, Charter Communications, Inc. CHTR and Archer-Daniels-Midland Company ADM.
Here are highlights from Friday’s Analyst Blog:
Top Stock Reports for Apple, IBM and Elevance Health
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., IBM Corp. and Elevance Health Inc. 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 held up better than the Zacks Tech sector this year (down -17.5% vs. -30%), but have modestly lagged the S&P 500 index's -15.6% decline). The discretionary aspect of the iPhone handset purchase decision in a weakening macroeconomic landscape notwithstanding, the big uncertainty in the Apple story has been China and its zero-Covid policy.
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.
However, Apple’s fourth-quarter fiscal 2022 results benefited from strong iPhone and Mac revenues. Although Services business grew at a slower pace, subscriber base continued to expand in the reported quarter.
(You can read the full research report on Apple here >>>)
Shares of IBM have outperformed the Zacks Computer - Integrated Systems industry over the past year (+27.6% vs. +7.6%). The company reported solid third-quarter 2022 results, wherein both the bottom and the top lines beat the Zacks Consensus Estimate. Synergies from the Red Hat buyout are bolstering its competitive position in the hybrid cloud market.
IBM’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability in the forthcoming quarters.
However, IBM is facing stiff competition in the cloud computing market from the likes of Amazon Web Services and Microsoft Azure. Higher debt levels amid extensive restructuring activities pose a concern for the company. High integration risk from continuous acquisition spree is another headwind.
(You can read the full research report on IBM here >>>)
Shares of Elevance Health have outperformed the Zacks Medical Services industry over the past year (+31.4% vs. -27.3%). The company’s improving top-line can be attributed to premium rate increases and higher memberships. Acquisitions and collaborations have enabled the company to strengthen its business portfolio. Please note that Elevance is the new name of Anthem.
Its well-performing Medicare and Medicaid businesses, coupled with several contract wins, are expected to drive its membership going ahead. Adjusted net income is anticipated to be more than $28.95 per share, higher than the prior outlook of greater than $28.70.
However, the company's escalating costs continue to put pressure on margins. Declining cash flows are also concerning. Its balance sheet with a massive debt of more than $21 billion can affect financial flexibility. As such, the stock warrants a cautious stance.
(You can read the full research report on Elevance Health here >>>)
Other noteworthy reports we are featuring today include Charter Communications, Inc. and Archer-Daniels-Midland Company.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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