Today's Must Read
Surging Vehicle Demand to Drive Tesla (TSLA) Amid High Capex
UnitedHealth (UNH) Solid Top Line Aids, Membership Dip Hurts
Tuesday, June 8, 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 Amazon.com (AMZN), Tesla (TSLA), and UnitedHealth Group (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 >>>
Shares of Amazon have underperformed the broader market in the last one-year period (+23% vs. +36.2%) on a combination of worries, ranging from the company's less advantageous standing in the post-pandemic world to negative sentiment on all 'growthy' stocks in a rising interest rate environment. That said, the Zacks analyst believes that Amazon is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Further, solid growth in its online stores sales remains a positive.
Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance. Moreover, expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. However, accelerating coronavirus related expenses remain risks for the company’s margin expansion in the near term.
Tesla shares have gained +0.1% over the last six months against the Zacks Domestic Automotive industry’s gain of +2.6%. The Zacks analyst believes that the company has a first-mover advantage in the e-mobility space, with high range vehicles and superior technology.
Further, robust Model 3/Y demand, Shanghai Gigafactory prospects, amazing line-up of upcoming products and aggressive expansion efforts bode well for the firm. However, an unclear 2021 vehicle delivery target raises a concern. Also, waning margins for Model S/X, chip crunch and lofty valuation of the firm are other concerns.
Shares of UnitedHealth have gained +14.1% in the past three months against the Zacks Medical Insurance industry’s gain of +13.1%. The Zacks analyst believes that the company’s top line has been boosted by new deals, renewed agreements and expansion of service offerings.
UnitedHealth remains well poised to gain from its government business. Further, a sturdy balance sheet and consistent cash flow generation have led to a solid capital position, thereby enabling the company to engage in share buybacks and dividend payments. However, it is witnessing a slowdown in international and commercial business.
Other noteworthy reports we are featuring today include T-Mobile US (TMUS), TotalEnergies (TOT) and Moderna (MRNA).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Director of Research
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>>>