Wednesday, February 22 2017

Today's Research Daily features new research reports on 16 major stocks, including UnitedHealth (UNH), General Mills (GIS) and Public Storage (PSA).

Buy-rated UnitedHealth shares have gained +32.5% over the last year, underperforming the Zacks Medical Health Maintenance Organization industry, which has gained +23.2% over the same period. UnitedHealth’s better-than-expected earnings were driven by strong results from both UnitedHealth Care and Optum segments.

The company also reaffirmed the previously issued guidance for 2017. The analyst likes that fact that the company is consistently gaining from the Medicaid and Medicare businesses. Continued growth at Optum is also creating a diversified revenue source. Also, UnitedHealth should benefit from its capital strength and niche market position. But losses on public exchange business and higher operating costs are some of the headwinds. (You can read the full research report on UnitedHealth here.)

General Mills shares lagged the market last year as market participants shifted away from consumer staples and other high dividend stocks. Weakness in the company's U.S. Retail segment has also been an issue, though the Zacks analyst points to the company's robust restructuring savings, which are making up for the slower revenue growth. Though consumer-focused innovation and marketing efforts will eventually help improve businesses in like cereals and snacks, a material improvement will likely take time. (You can read the full research report on General Mills here.)

Public Storage shares have outperformed the Zacks categorized REIT and Equity Trust – Other industry over the past three months, gaining +11.2% vs +6.1%. The analyst stresses that the company is a recognized and established name in the self-storage industry in the U.S. and its acquisition and expansion efforts are encouraging.

However, softness in demand and rising supply in some of the markets are key concerns. Estimates for full year 2016 have remained unchanged over the past 60 days. Public Storage is slated to report fourth-quarter 2016 results on Feb 22. (You can read the full research report on Public Storage here.)

Other noteworthy reports we are featuring today include Deere (DE), Williams (WMB) and Campbell Soup (CPB).

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Mark Vickery

Senior Editor

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 >>>