Today's Must Read
Strong Service and Benefit Business Aids UnitedHealth (UNH)
Business Recovery Aids Medtronic (MDT) Amid Stiff Rivalry
Friday, September 17, 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 Alphabet Inc. (GOOGL), UnitedHealth Group Incorporated (UNH), and Medtronic plc (MDT). 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 Alphabet have outperformed the S&P 500 over the past year (+96% vs. +38.6%). The Zacks analyst believes that the company’s focus on innovation, strategic acquisitions and Android OS will continue to generate strong cash flow.
Alphabet’s deepening focus on wearables category as well as the home automation space remains a major tailwind. Its expanding data centers will likely bolster its presence in the cloud space. Growing litigation issues, increasing expenses, as well as currency fluctuations that stress Alphabet’s margins are some of the major headwinds though.
UnitedHealth shares have gained +16.7% in the last six months against the Zacks Medical Insurance industry’s gain of +10.8%. The Zacks analyst acknowledges that UnitedHealth's continued strong growth at Optum and UnitedHealthcare segments have been driving revenues.
The company’s revenue momentum is likely to continue in the quarters ahead on the back of a strong market position as well as new deals, renewed agreements and expansion of service offerings. Continuous business investments indicate a sturdy balance sheet. This also helps UnitedHealth pay dividends to shareholders. Sluggishness in the international business, however, continues to weigh on the margins.
Shares of Medtronic have gained +5.6% in the past three months against the Zacks Medical Products industry’s gain of +4.3%. The Zacks analyst believes that all of the company’s major business groups have been contributing to consistent revenue growth.
Medtronic’s first-quarter fiscal 2022 results reflected a strong recovery from the impact of the pandemic, with most of the businesses finishing at or above pre-pandemic levels. Unfavorable currency movement and global economic uncertainties are major headwinds for the company though. Stiff competition from other major industry players is another major cause of concern.
Other noteworthy reports we are featuring today include Cisco Systems, Inc. (CSCO), Starbucks Corporation (SBUX) and Caterpillar Inc. (CAT).
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>>>