Today's Must Read
Solid Top Line & Strong Cash Flows Drive UnitedHealth (UNH)
Loan Demand, Cost Management Aid BofA (BAC) Amid Lower Rates
Monday, October 18, 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 NVIDIA Corporation (NVDA), UnitedHealth Group Incorporated (UNH), and Bank of America Corporation (BAC). 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 NVIDIA have outperformed the Zacks General Semiconductor industry in the year to date period (+69.8% vs. +39.5%). The Zacks analyst believes that the company has been benefiting from growth opportunities in ray-traced gaming, rendering, high-performance computing, AI and self-driving cars.
Expansion of NVIDIA GeForce NOW is expected to drive user base. Solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon. Collaboration with Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space. The management, however, expects its near-term revenues to be weighed down by the ongoing pandemic.
UnitedHealth shares have gained +33.3% over the past year against the Zacks Medical Insurance industry’s gain of +27.4%. The Zacks analyst believes that UnitedHealth's continued strong growth at Optum as well as UnitedHealthcare segments have been driving revenues. A sturdy balance sheet and solid cash generation abilities not only enable investments but also prudent capital deployment.
UnitedHealth’s international business spans over four of the six largest countries in Latin America, as well as in Europe and over 130 countries around the world. It is one of the few companies in the health insurance space having an expanding overseas business. A decline in memberships in the company’s Commercial business, which constitutes a chunk of its total medical membership has been hurting revenues though.
Shares of Bank of America have gained +18.9% over the past six months against the Zacks Major Regional Banks industry’s gain of +12%. The Zacks analyst believes that efforts to improve revenue growth, strong balance sheet and expansion into new markets have been supporting Bank of America.
Opening of new branches, enhancing digital capabilities and initiatives to manage expenses along with a strong balance sheet and liquidity position are other major positives. Lower interest rates and the Federal Reserve’s decision to not change the same in near term are expected to keep hurting the company’s margins and interest income though.
Other noteworthy reports we are featuring today include Exxon Mobil Corporation (XOM), SAP SE (SAP) and Sony Group Corporation (SONY).
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>>>