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The Zacks Analyst Blog Highlights Eli Lilly, UnitedHealth, Walmart, Applied Materials and BCE

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For Immediate Release

Chicago, IL – August 23, 2023 – 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: Eli Lilly and Co. (LLY - Free Report) , UnitedHealth Group Inc. (UNH - Free Report) , Walmart Inc. (WMT - Free Report) , Applied Materials, Inc. (AMAT - Free Report) and BCE Inc. (BCE - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Top Research Reports for Eli Lilly, UnitedHealth and Walmart

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 Eli Lilly and Co., UnitedHealth Group Inc. and Walmart 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 >>>

Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+51.6% vs. +10.0%). The company’s revenue growth is being driven by higher demand for drugs like Trulicity, Taltz and others. It is regularly adding promising new pipeline assets through business development deals.

Lilly expects to launch four new medicines by 2023 end with Mounjaro for type II diabetes and cancer drug Jaypirca already launched. Mounjaro sales are already benefiting from strong demand trends. However, the CRL for donanemab will probably delay the potential launch of the candidate.

Generic competition for several drugs, rising pricing pressure in the United States and some international markets are some top-line headwinds. Estimates have declined slightly ahead of Q2 results. Lilly has a mixed record of earnings surprises in the recent quarters.

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

Shares of UnitedHealth have modestly outperformed the Zacks Medical - HMOs industry over the past six months (+2.0% vs. +1.6%). 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’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 via share repurchases and dividends.

However, 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 here >>>)

Walmart shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+19.3% vs. +16.6%). The company has been benefiting from its robust omnichannel operations due to its efforts to enhance store and online experience. Walmart has been particularly gaining from its efforts to boost delivery services.

Increased market share in grocery continued to boost U.S. comp sales in the first quarter of fiscal 2024, wherein the top and bottom lines beat the Zacks Consensus Estimate and grew year over year. Strong comp sales growth globally, expense leverage and e-commerce growth across all units were upsides.

Although Walmart raised its guidance for fiscal 2024, its adjusted earnings per share view suggests a decline from the year-ago period figure. The company is battling cost inflation, which is likely to remain elevated. An adverse product mix has also been a downside for margins.

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

Other noteworthy reports we are featuring today include Applied Materials and BCE Inc.

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