Tuesday, January 3 2016

Today's Research Daily features new research reports on 16 major stocks, including UnitedHealth (UNH), Pfizer (PFE) and Lockheed Martin (LMT).

Shares of Buy rated UnitedHealth have gained more than 37.4% over 2016, outperforming the medical health maintenance organization industry, which increased by 21.4%. UnitedHealth issued optimistic guidance for 2017, backed by stable medical costs, higher contribution from Optum and decline in exposure from its public exchange business. The analyst stresses that the company is consistently gaining from the Medicaid and Medicare businesses. Continued growth at Optum is also leading to a diversified revenue source. The segment should see further growth from the Catamaran acquisition. Also, UnitedHealth should benefit from its capital strength, niche market position and a track record of returning excess cash to shareholders through dividend hikes and share buybacks. But industry fees and taxes, losses on public exchange business and overall uncertainty about the fate of ObamaCare are some of the headwinds. (You can read the full research report on UnitedHealth here>>)

Pfizer shares did marginally better relative to the large cap pharma industry in 2016, but the group continues to be weighed down by drug pricing worries though it has eased a bit since the election. The analyst emphasizes that Pfizer is strengthening its product portfolio as well as pipeline through acquisitions and licensing deals. A case in point is the Sep 2016 acquisition of Medivation that has strengthened Pfizer’s cancer franchise. Meanwhile, new products like Ibrance should do well and drive revenues. However, headwinds remain in the form of 'genericization', pricing pressure and rising competition, which will continue to hamper top-line growth. (You can read the full research report on Pfizer here.)

Strong Buy rated Lockheed Martin shares gained +17.2% in 2016, outperforming the aerospace/defense sector, which has gained +13% over the same period. Driving this momentum is Lockheed Martin’s status as a bellwether for the defense space and the company's impressive cash flow generation abilities which it generously shares with its shareholders. The 10% dividend hike and an additional $2 billion buyback authorization add to the company's track record on this front. The analyst likes the company's solid outlook, impressive revenue growth and potential share buybacks. (You can read the full research report on Lockheed Martin here>>)

Other noteworthy reports we are featuring today include Facebook (FB), 3M (MMM) and TripAdvisor (TRIP).

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Sheraz Mian

Director of Research

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