Today's Must Read
TOTAL (TOT) Expects Top-Line Production to Rise 4% in 2017
UnitedHealth (UNH) Gaining from Strong Optum, Medicare Business
Wednesday June 7 2017
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 Broadcom (AVGO), TOTAL S.A. (TOT) and UnitedHealth (UNH).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 >>>
Buy-rated Broadcom’s shares have handily beaten the technology sector as well as the red-hot semiconductor space in the year-to-date period, gaining +43.6%. The Zacks analyst likes the synergistic benefits gained from the merger with Avago, which will drive future profitability. Seasonal strength in broadband access and sustained cloud data center spending is expected to drive top-line growth in the rest of fiscal 2017.
The company’s divestiture of some of Brocade’s assets to ARRIS International will accelerate the acquisition process and also lower leverage. However, customer concentration is a significant headwind. (You can read the full research report on Broadcom here >>>) .
Shares of TOTAL S.A. have outperformed the Zacks categorized Oil & Gas International Integrated industry over the last year (up +4.9% vs. -1.0%). The Zacks analyst likes the company’s commitment to cost savings initiatives amid ongoing volatility of crude oil prices. After savings of $2.8 billion in 2016, TOTAL aims to save $3.5 billion in costs this year. Furthermore, it expects to improve its top-line production by 4% in 2017, owing to new projects that have started operation this year.
Going forward, the company will continue to benefit from upstream startups, while the strategic acquisitions and asset divestitures will further strengthen portfolio. However, fluctuating commodity prices, operations in some politically troubled regions and increasing competition could impact the company’s profitability. (You can read the full research report on TOTAL S.A. here >>>).
UnitedHealth’s continued strong growth at Optum as well as UnitedHealthcare segments are driving growth. The buy rated stock’s international business and strong capital position are other positives. Moreover, the company has reduced its exposure to the troubled public exchange business.
Though this move will shield it from losses in this business, the company’s premium revenues are likely to be affected. UnitedHealth shares have underperformed the Zacks Medical-HMOs industry in the year-to-date period (up +13.8% vs. +17.3%). (You can read the full research report on UnitedHealth here >>>).
Other noteworthy reports we are featuring today include Nike (NKE), TE Connectivity (TEL) and Ingersoll Rand (IR).
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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>>>