Today's Must Read
Solid Top Line, Strong Balance Sheet Aid UnitedHealth (UNH)
High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)
Tuesday, March 2, 2021
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 Johnson & Johnson (JNJ), UnitedHealth Group (UNH) and Comcast (CMCSA). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Johnson & Johnson shares have outperformed the Zacks Large-Cap Pharmaceuticals industry over the past year (+17.5% vs. +10.3%). The Zacks analyst believes that J&J’s diversification makes it relatively resilient amid the macroeconomic turmoil.
The Pharma unit is performing at above-market levels, supported by successful label expansion of blockbuster drugs, Imbruvica, Darzalex and Stelara. Meanwhile, its Consumer Health unit also performed above-market in 2020 while the Medical Devices segment demonstrated a strong second-half recovery.
J&J is also making rapid progress with its pipeline and line extensions. Several pivotal data readouts are expected in 2021. However, headwinds like generic competition and pricing pressure continue.
Shares of UnitedHealth have gained 5.9% in the last six months against the Zacks Medical Insurance industry’s gain of 5.3%. The Zacks analyst believes that the company remains well poised to gain from its government business, comprising both Medicaid and Medicare Advantage.
The company’s top line is bolstered by new deals, renewed agreements and expansion of service offerings. Its numerous acquisitions bode well for its inorganic growth profile. Its solid health services segment provides significant diversification benefits.
Moreover, a sturdy balance sheet and consistent cash flow generation is another positive, which has resulted in a solid capital position. This has empowered the company to engage in prudent shareholder-friendly moves through share buybacks and dividend payments.
Comcast’s shares have gained 5.6% over the past three months against the Zacks Cable Television industry’s loss of 0.6%. The Zacks analyst believes that Comcast is benefiting from solid high-speed Internet customer wins.
Its strategy to provide high-speed Internet at an affordable price plays a pivotal role in providing connectivity and improving customer experience. Moreover, coronavirus-led increased media consumption, and work-from-home and online-learning waves bode well for Comcast’s Internet business.
Its streaming service, Peacock, has gained significant tract within a short span of time and is a key catalyst in driving broadband sales. However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Also, theme park revenues are expected to suffer from lower footfall and the indefinite closure of Hollywood Park.
Other noteworthy reports we are featuring today include QUALCOMM (QCOM), AstraZeneca (AZN) and Micron Technology (MU).
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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>>>