We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights UnitedHealth Group, Danaher, Wells Fargo, Vertex Pharmaceuticals and Canadian Pacific Railway
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 20, 2022 – 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 Inc. (UNH - Free Report) , Danaher Corp. (DHR - Free Report) , Wells Fargo & Co. (WFC - Free Report) , Vertex Pharmaceuticals Inc. (VRTX - Free Report) and Canadian Pacific Railway Limited (CP - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Q1 Scorecard and Analyst Reports for UnitedHealth, Danaher and Wells Fargo
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q1 earnings season and new research reports on 16 major stocks, including UnitedHealth Group Inc., Danaher Corp., and Wells Fargo & Co. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Including all of this morning's reports, we now have Q1 results from 40 S&P 500 members. Total earnings for these companies re down -16.6% from the same period last year on +8.4% higher revenues, with 77.5% beating consensus EPS estimates and an equal proportion beating consensus revenue estimates.
The sampe of results at this stage of the reporting cycle is weighted towards the Finance sector, but we can nevertheless say with some degree of confidence that companies appear to be struggling to beat consensus EPS estimates.
In fact, the 2022 Q1 EPS beats percentage at 77.5% for this group of 40 S&P 500 members is the lowest since the second quarter of 2020, the worst Covid-affected quarterly reporting cycle. This suggests to us that management teams as well as analysts are finding it hard to fully handicap the ongoing inflationary trends.
For the Finance sector, we now have Q1 results from 33.6% of the index's total market capitalization in the index. Total Q1 earnings for these Finance companies are down -28.8% from the same period last year on -2.6% lower revenues, with 73.3% beating EPS estimates and 60% beating revenue estimates.
Shares of UnitedHealth have outperformed the Zacks Medical - HMOs industry over the past year (+37.6% vs. +31.8%) The Zacks analyst believes that the company's top line has been growing and the momentum should continue in the years ahead on the back of a strong market position and an attractive core business that continues to be driven by new deals, renewed agreements and expansion of service offerings. Its solid health services segment provides diversification benefits. UnitedHealth reported strong first-quarter 2022 results thanks to growth in its business segments.
A sturdy balance sheet enables investments and prudent capital deployment through share buybacks and dividends. However, softness in commercial business due to the COVID-induced volatilities persists. Also, rising operating costs are hurting its profits. As such, the stock warrants a cautious stance.
Shares of Danaher have outperformed the Zacks Diversified Operations industry over the past year (+13.7% vs. -11.4%). The Zacks analyst believes that the company should continue to benefit from Danaher Business System ("DBS"), healthy rewards to shareholders, buyout benefits, and product innovation in the quarters ahead. In the fourth-quarter 2021, its earnings and sales surpassed estimates. The company anticipates year-over-year core revenue growth of 10% for the first quarter of 2022.
The impact of COVID-related testing is predicted to boost sales in the low-single digits in the first quarter. However, cost inflation and woes related to supply-chain restrictions might be worrying in the quarters ahead. High debts might inflate financial obligations and forex woes might be concerning.
Shares of Wells Fargo have outperformed the Zacks Banks - Major Regional industry over the past year (+14.5% vs. -2.1%). The Zacks analyst believes that the growing deposit trend strengthens the company's liquidity position. Given its robust capital position, its capital deployment activities seem sustainable. Improving credit quality poses a tailwind. Expense-control moves will aid its bottom line.
However, legal hassles exacerbated with Wells Fargo being penalized with business restrictions and a monetary fine. Restrictions on balance sheet growth hinder loan expansion ability. A decline in originations might limit Wells Fargo's mortgage banking income and overall top line.
Other noteworthy reports we are featuring today include Vertex Pharmaceuticals Inc. and Canadian Pacific Railway Limited.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights UnitedHealth Group, Danaher, Wells Fargo, Vertex Pharmaceuticals and Canadian Pacific Railway
For Immediate Release
Chicago, IL – April 20, 2022 – 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 Inc. (UNH - Free Report) , Danaher Corp. (DHR - Free Report) , Wells Fargo & Co. (WFC - Free Report) , Vertex Pharmaceuticals Inc. (VRTX - Free Report) and Canadian Pacific Railway Limited (CP - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Q1 Scorecard and Analyst Reports for UnitedHealth, Danaher and Wells Fargo
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q1 earnings season and new research reports on 16 major stocks, including UnitedHealth Group Inc., Danaher Corp., and Wells Fargo & Co. 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 >>>
Q1 Earnings Season Scorecard
Including all of this morning's reports, we now have Q1 results from 40 S&P 500 members. Total earnings for these companies re down -16.6% from the same period last year on +8.4% higher revenues, with 77.5% beating consensus EPS estimates and an equal proportion beating consensus revenue estimates.
The sampe of results at this stage of the reporting cycle is weighted towards the Finance sector, but we can nevertheless say with some degree of confidence that companies appear to be struggling to beat consensus EPS estimates.
In fact, the 2022 Q1 EPS beats percentage at 77.5% for this group of 40 S&P 500 members is the lowest since the second quarter of 2020, the worst Covid-affected quarterly reporting cycle. This suggests to us that management teams as well as analysts are finding it hard to fully handicap the ongoing inflationary trends.
For the Finance sector, we now have Q1 results from 33.6% of the index's total market capitalization in the index. Total Q1 earnings for these Finance companies are down -28.8% from the same period last year on -2.6% lower revenues, with 73.3% beating EPS estimates and 60% beating revenue estimates.
Shares of UnitedHealth have outperformed the Zacks Medical - HMOs industry over the past year (+37.6% vs. +31.8%) The Zacks analyst believes that the company's top line has been growing and the momentum should continue in the years ahead on the back of a strong market position and an attractive core business that continues to be driven by new deals, renewed agreements and expansion of service offerings. Its solid health services segment provides diversification benefits. UnitedHealth reported strong first-quarter 2022 results thanks to growth in its business segments.
A sturdy balance sheet enables investments and prudent capital deployment through share buybacks and dividends. However, softness in commercial business due to the COVID-induced volatilities persists. Also, rising operating costs are hurting its profits. As such, the stock warrants a cautious stance.
(You can read the full research report on UnitedHealth here >>>)
Shares of Danaher have outperformed the Zacks Diversified Operations industry over the past year (+13.7% vs. -11.4%). The Zacks analyst believes that the company should continue to benefit from Danaher Business System ("DBS"), healthy rewards to shareholders, buyout benefits, and product innovation in the quarters ahead. In the fourth-quarter 2021, its earnings and sales surpassed estimates. The company anticipates year-over-year core revenue growth of 10% for the first quarter of 2022.
The impact of COVID-related testing is predicted to boost sales in the low-single digits in the first quarter. However, cost inflation and woes related to supply-chain restrictions might be worrying in the quarters ahead. High debts might inflate financial obligations and forex woes might be concerning.
(You can read the full research report on Danaher here >>>)
Shares of Wells Fargo have outperformed the Zacks Banks - Major Regional industry over the past year (+14.5% vs. -2.1%). The Zacks analyst believes that the growing deposit trend strengthens the company's liquidity position. Given its robust capital position, its capital deployment activities seem sustainable. Improving credit quality poses a tailwind. Expense-control moves will aid its bottom line.
However, legal hassles exacerbated with Wells Fargo being penalized with business restrictions and a monetary fine. Restrictions on balance sheet growth hinder loan expansion ability. A decline in originations might limit Wells Fargo's mortgage banking income and overall top line.
(You can read the full research report on Wells Fargo here >>>)
Other noteworthy reports we are featuring today include Vertex Pharmaceuticals Inc. and Canadian Pacific Railway Limited.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.