Wednesday, March 13, 2024

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 Inc. (UNH), Johnson & Johnson (JNJ) and Oracle Corp. (ORCL). 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 >>>

Shares of UnitedHealth have gained +7.7% over the past year against the Zacks Medical - HMOs industry’s gain of +9.3%. The company’s top line remains 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 in the future. Adjusted net earnings per share are anticipated to be in the $27.5-$28.00 band in 2024, higher than the 2023 figure of $25.12. A sturdy balance sheet enables business investments and prudent deployment of capital via share repurchases and dividend payments.

However, membership in its global business continues to be a concern. High operating costs due to rising medical expenses are hurting margins. As such, the stock warrants a cautious stance.

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

Johnson & Johnson’s shares have gained +8.0% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +37.2%. The company’s innovative Medicine unit is performing at above-market levels. Its growth is being driven by existing products like Darzalex, Stelara, Tremfya and Erleada, and also the continued uptake of new launches, including Spravato, Carvykti and Tecvayli.

The MedTech unit is showing improving trends, driven by a recovery in surgical procedures and contribution from new products. J&J is making rapid progress with its pipeline and line extensions.

However, headwinds like generic competition and pricing pressure continue. J&J faces the upcoming patent expiration of Stelara. Though it has taken meaningful steps to resolve its talc and opioid litigation, uncertainty regarding the talc litigations persists.

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

Shares of Oracle have gained +52.6% over the past year against the Zacks Computer - Software industry’s gain of +58.4%. The company’s third-quarter fiscal 2023 results benefited from the steady adoption of strategic cloud applications, autonomous database and OCI, as well as a recovery in cloud revenue growth.

Oracle’s Gen 2 Cloud is driving artificial intelligence (AI) clientele because of better performance at a lower cost due to high bandwidth and low-latency RDMA networks. ORCL’s continued investment in cloud infrastructure positions it well for sustained growth in the dynamic software industry. Its share buybacks and dividend policy are noteworthy.

However, the uncertain economy and competition in the cloud computing market weighed on demand for its cloud offerings. Stiff competition in the cloud market is slowing down the growth of its expansion efforts in the competitive market.

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

Other noteworthy reports we are featuring today include Adobe Inc. (ADBE), Wells Fargo & Co. (WFC) and Caterpillar Inc. (CAT).

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>>>