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The Zacks Analyst Blog Highlights: UnitedHealth Group, Netflix, Caterpillar, General Electric and GlaxoSmithKline

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For Immediate Release

Chicago, IL – January 8, 2021 – 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: UnitedHealth Group Incorporated (UNH - Free Report) , Netflix, Inc. (NFLX - Free Report) , Caterpillar Inc. (CAT - Free Report) , General Electric Company (GE - Free Report) and GlaxoSmithKline plc (GSK - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

Top Stock Reports for UnitedHealth, Netflix and Caterpillar

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 UnitedHealth Group, Netflix and Caterpillar. 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 >>>

UnitedHealth shares have outperformed the Zacks Medical Insurance industry over the past year (+21.4% vs. +11.2%). The Zacks analyst believes that the company’s top line has benefited significantly from new deals, renewed agreements and expansion of service offerings. Its numerous acquisitions bode well for its inorganic growth profile.

Expansion of the company’s health services segment provides significant diversification benefits. UnitedHealth remains well poised to benefit from its government business, comprising both Medicaid and Medicare Advantage.

A solid balance sheet and consistent cash flow generation not only encourage investments in business but also add shareholder value. However, the company is witnessing a slowdown in its international operations. Increased joblessness stemming from the COVID-19 induced volatilities might hurt Commercial membership. 

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

Shares of Netflix have lost -0.4% in the last six months against the Zacks Broadcast Radio and Television industry’s gain of +18.2%. The Zacks analyst believes that Netflix is dominating the streaming space, on the back of heavy investments in the production and distribution of localized, foreign-language content.

Higher number of originals is expected to aid user base growth in 2021. Moreover, the launch of low-priced mobile plans in India, Indonesia, Malaysia, Philippines and Thailand is expanding Netflix’s subscriber base in Asia Pacific.

However, the absence of new season of popular show Stranger Things is likely to affect subscriber growth in the fourth quarter of 2020. Additionally, rising competition from Apple, Amazon prime video, HBO Max, Disney+, Peacock and TikTok is a headwind. Netflix’s leveraged balance sheet and higher streaming obligation is a concern.

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

Caterpillar shares have gained +23.7% over the past three months against the Zacks Construction and Mining industry’s rise of +24.4%. The Zacks analyst believes that a weak backlog, lowering of inventory by dealers and weakness in non-residential construction will impact the company’s results in 2020. Its cost-reduction efforts will sustain margins in this scenario.

Further, a recovering manufacturing sector, resumption of spending at miners, improved North American residential construction and strong construction demand in China hold promise.

A robust liquidity position, investments in expanded offerings, and services and digital initiatives will also fuel growth. The earnings estimates for Caterpillar's current fiscal year have undergone positive revisions lately.

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

Other noteworthy reports we are featuring today include General Electric and GlaxoSmithKline.

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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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