Today's Must Read
Growing Customer Base & Partnerships Aid ServiceNow (NOW)
CVS Health's (CVS) Pharmacy Arm, Digital Capabilities Expand
Wednesday, September 22, 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 United Parcel Service, Inc. (UPS), ServiceNow, Inc. (NOW), and CVS Health Corporation (CVS). 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 United Parcel Service have outperformed the Zacks Transportation - Air Freight and Cargo industry over the past year (+17.2% vs. +14.1%). The Zacks analyst appreciates UPS' efforts to reward its shareholders through dividends and buybacks and acknowledges the fact that the company paid out dividends worth $3.6 billion despite the coronavirus rout.
The company’s board also approved a new share repurchase program worth $5 billion in August, while maintaining its pro-shareholder stance. UPS’ solid liquidity position and an environment-friendly approach is also impressive. High operating expenses at UPS are a concern though.
ServiceNow shares have gained +38.5% in the last six months against the Zacks IT Services industry’s gain of +18.7%. The Zacks analyst believes that its dominant position in the ITSM, ITOM markets, growing fortune 500 customer base, and product enhancements via strategic acquisitions are key catalysts for growth.
ServiceNow has also been benefiting from a robust growth in subscription revenues. Based on strong adoption of its digital workflow solutions, it expects 2021 subscription billings to grow year over year. Stiff competition in non-ITSM product segments, as well as stretched valuation are major headwinds for the company.
Shares of CVS Health have gained +1.7% in the past three months against the Zacks Retail Pharmacies and Drug Stores industry’s loss of -2.2%. The Zacks analyst believes that an increasing demand for PBM and specialty pharmacy coupled with substantial growth in the retail business remain as key positives.
Second-quarter revenues across all three operating segments surpassed the company’s expectations. Increased full-year guidance also reflects that this bullish trend is likely to continue throughout 2021. Pressure to reduce reimbursement rates for generic drugs, a dismal retail performance, and pressure on margins are some of the major headwinds though.
Other noteworthy reports we are featuring today include Deere & Company (DE), Booking Holdings Inc. (BKNG) and Altria Group, Inc. (MO).
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>>>