Top Stock Reports for Apple, NVIDIA & Eli Lilly

Monday, April 1, 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), NVIDIA Corporation (NVDA) and Eli Lilly and Company (LLY). 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 struggled lately, with the stock down -11.9% in the year-to-date period compared to +11.4% gain for the Zacks Tech sector and the +10.1% gain for the S&P 500 index.

The company is benefiting from steady iPhone sales amid stiff competition and weakness in China. Apple expects the March quarter’s revenues and iPhone revenues to be similar to that of the year-ago quarter’s figure after removing the additional $5 billion it generated due to pent-up demand for iPhone 14 and iPhone 14 Pro Max in the year-ago quarter.

Unfavorable forex is expected to hurt revenues by 2% on a year-over-year basis. For the Services segment, Apple expects a double-digit growth rate, similar to the December-end quarter. Strong adoption of Apple TV+ driven by strong content is a key catalyst.

Apple is gaining share in PCs which is positive. Apple’s strong cash balance and shareholder friendly approach to dividend and share repurchase is noteworthy. However, growing legal complexities has been a headwind.

(You can read the full research report on Apple here >>>)
Shares of NVIDIA have outperformed the Zacks Semiconductor - General industry over the year-to-date period (+82.5% vs. +61.1%). The company’s Compute & Networking revenues are gaining from the strong growth of artificial intelligence (AI), high-performance and accelerated computing.

The data center end-market business is likely to benefit from the growing demand for generative AI and large language models using graphic processing units (GPUs) based on NVIDIA Hopper and Ampere architectures. A surge in hyperscale demand and higher sell-ins to partners across the Gaming and ProViz end markets following the normalization of channel inventory are acting as tailwinds.

Collaborations with Mercedes-Benz and Audi are likely to advance its presence in autonomous vehicles and other automotive electronics space. However, its near-term prospects are likely to be hurt by softening IT spending amid macroeconomic headwinds.

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

Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+33.7% vs. +15.6%). The company’s revenue growth is being driven by higher demand for drugs like Mounjaro, Verzenio, Jardiance Taltz and others.

Lilly’s new FDA-approved tirzepatide medicines, diabetes drug Mounjaro and newly launched weight loss medicine, Zepbound, are expected to be key top-line drivers.  Lilly has also launched some other new products recently like Omvoh and Jaypirca.  These new products are expected to drive Lilly’s top line in 2024.

Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s. However, generic competition for some drugs, rising pricing pressure and challenges in meeting strong demand for incretin products like Trulicity are some top-line headwinds.

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

Other noteworthy reports we are featuring today include Exxon Mobil Corporation (XOM), American Tower Corporation (AMT) and McKesson Corporation (MCK).

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 Portfolio, Services Strength to Benefit Apple (AAPL)

NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships

Lilly (LLY) New Products Hold Key to Long-Term Growth

Featured Reports

ExxonMobil's (XOM) Stabroek & Permian Basin Discoveries Aid
ExxonMobil's track record of prudent CAPEX management and Permian Basin discoveries promise long-term growth. However, rising input costs concern the Zacks analyst.

Steady Demand Buoys American Tower (AMT), Debt Woes Linger
Per the Zacks Analyst, American Tower is witnessing steady demand at its towers due to a surge in wireless services usage. Yet, a substantially leveraged balance sheet may impede cash-flow generation.

Demand for Specialty Products Driving McKesson (MCK) Prospects
Per the Zacks analyst, McKesson's distribution segment will continue to benefit from higher volume of specialty products coupled with price rise. Rising demand for extended and primary care buoys well

Norfolk Southern (NSC) Strong on Dividends Amid Volume Woes
The Zacks analyst likes the company's efforts to reward its shareholders. However, below-par volumes due to the weak freight demand scenario remain a concern.

Investments to Benefit Entergy (ETR), Poor Financials Woe
Per the Zacks analyst, Entergy's solid investments are expected to boost its grid upgrades and customer reliability. Yet its deteriorating financial ratios implies its poor financial position.

Onto Innovation (ONTO) Benefits From Solid Product Portfolio
Per the Zacks analyst, Onto Innovation's performance benefits from increasing demand for the Dragonfly inspection system. However, stiff competition is a major headwind.

Solid Revenue Growth & Buyouts Aid Encompass Health (EHC)
Per the Zacks Analyst, Encompass Health's top line has been fueled by growing patient volumes. Several acquisitions have strengthened its capabilities and expanded geographic footprint.

New Upgrades

PACCAR (PCAR) Rides on Robust Deliveries & Strong Financials
Strong order intake from PACCAR's top brands (Kenworth, Peterbilt, DAF), a solid balance sheet and a consistent dividend track record fuel the Zacks analyst's optimism on the stock.

Toll Brothers (TOL) Benefits From Built-to-Order Approach
Per the Zacks Analyst, Built-to-Order process enables homebuyers personalize their homes irrespective of prices, thus giving Toll Brothers competitive edge over its peers.

American Eagle's (AEO) Strategic Initiatives Progress Well
Per the Zacks analyst, American Eagle is gaining from brand strength and demand for products that resonated well with customers. Both the Aerie and flagship brands are performing well for a while.

New Downgrades

High SG&A and Launch-Related Costs to Ail Standard Motor (SMP)
Per the Zacks analyst, Standard Motor is likely to face headwinds from the increased launch-related costs of the new distribution center. High SG&A expenses are also concerning.

Yelp (YELP) Hurt by Falling Delivery, Rising Competition
Per the Zacks analyst, declining food take-out and delivery order volumes due to reopening of economies is hurting transaction revenues. Competition from Google and Facebook is a major threat to Yelp.

Vishay (VSH) Suffers From Sluggish MOSFET and Opto Segments
Per the Zacks analyst, Vishay is suffering from weakness in MOSFET and optoelectronics product lines, particularly in the Americas region and Asia.

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American Tower Corporation (AMT) : Free Stock Analysis Report

Apple Inc. (AAPL) : Free Stock Analysis Report

Exxon Mobil Corporation (XOM) : Free Stock Analysis Report

Eli Lilly and Company (LLY) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

McKesson Corporation (MCK) : Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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