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The Zacks Analyst Blog Highlights: Alphabet, UnitedHealth, AbbVie, Adobe Systems and Anheuser-Busch

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For Immediate Release

Chicago, IL – September 10, 2020 – 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 Alphabet (GOOGL - Free Report) , UnitedHealth Group (UNH - Free Report) , AbbVie (ABBV - Free Report) , Adobe Systems (ADBE - Free Report) and Anheuser-Busch InBev (BUD - Free Report) .

Here are highlights from Wednesday’s Analyst Blog:

Top Stock Reports for Alphabet, UnitedHealth and AbbVie

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 Alphabet, UnitedHealth Group and AbbVie. 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 >>>

Alphabet shares have lagged the Zacks Internet Services industry in the year-to-date period (+13.8% vs. +19.5%), reflecting cyclical exposure to ad spending trends as a result of the pandemic-driven economic downturn. But the Zacks analyst sees the company's strengthening cloud unit as a source of substantial long-term growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space.

Further, major updates in its search segment are enhancing the search results, which is a major positive. Moreover, Google’s robust mobile search is gaining solid momentum. Additionally, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term.

Further, its deepening focus on the wearables category remains a tailwind. However, the company’s growing litigation issues and increasing expenses might hurt profitability. Further, the company faces persistent pressure from advertisers to tighten controls on YouTube video service.

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

Shares of UnitedHealth have gained +9.7% over the past six months against the Zacks Medical Insurance industry’s rise of +0.7%. The Zacks analyst believes that UnitedHealth's continued strong growth at Optum and UnitedHealthcare segments have been driving revenues.  Its favorable government business and strong capital position are other positives.

It has been benefiting from higher segmental contributions, which helped it counter the coronavirus-led fund crunch. Its numerous acquisitions bolstered its inorganic growth profile. Its expansion of the health services segment and international business provides significant diversification benefits.

The company's solid balance sheet and consistent cash flow generation not only encourage investment in business but also enables it to return shareholders’ value. Retaining 2020 earnings guidance instills investor confidence. However, it is witnessing a slowdown in its international operations. Commercial membership may also see attrition due to increased joblessness.

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

AbbVie shares have gained +32.3% over the past year against the Zacks Large-Cap Pharmaceuticals industry’s rise of +11.8%. The Zacks analyst believes that AbbVie has been successful in expanding labels of its cancer drugs, Imbruvica and Venclexta. It has an impressive late-stage pipeline.

The company gained approvals for two new drugs with significant potential, Skyrizi (risankizumab) and Rinvoq, in 2019. Both are off to a strong start. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.

However, sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind.  Also, the decline in HCV drug Mavyret’s sales is a concern.

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

Other noteworthy reports we are featuring today include Adobe Systems and Anheuser-Busch InBev.

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From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

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