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Research Daily

Sheraz Mian

Top Research Reports for UnitedHealth, Johnson & Johnson, & Alibaba


Trades from $3

Wednesday, March 30, 2022

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 UnitedHealth Group Incorporated (UNH), Johnson & Johnson (JNJ), and Alibaba Group Holding Limited (BABA). 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 >>>

UnitedHealth shares have gained +39.1% over the past year against the Zacks Medical - HMOs industry’s gain of +34.4%. The Zacks analyst believes that the company’s top line has been growing and the momentum should continue in the years ahead on the back of a strong market position and an attractive core business that continues to be driven by new deals, renewed agreements and expansion of service offerings. Its solid health services segment, which is on track to bulk up with the recently announced LHC group purchase, provides diversification benefits. The firm's government business remains well-poised for growth.

A sturdy balance sheet and solid cash generation abilities enable investments and prudent capital deployment through share buybacks and dividends. However, softness in commercial business due to the COVID-induced volatilities persists. Also, rising operating costs are hurting its profits.

(You can read the full research report on UnitedHealth here >>>)

Johnson & Johnson shares have gained +4.5% over the year to date period as against the Zacks Large Cap Pharmaceuticals industry’s gain of +4.1%. The Zacks analyst believes that the pharma unit is performing at above-market levels, supported by its blockbuster drugs, Darzalex and Stelara and contribution from newer drugs, Erleada and Tremfya and its COVID-19 vaccine. Sales in the Consumer unit are improving, withstanding external supply constraints.

J&J is making rapid progress with its pipeline and line extensions. Several pivotal data readouts are expected in 2022. However, the Medical Devices segment is being hurt by softening of recovery trends in medical and surgical procedures. Headwinds like generic competition and pricing pressure continue. Though J&J has taken meaningful steps to resolve its talc and opioid litigation, they continue to remain an overhang on the stock.

(You can read the full research report on Johnson & Johnson here >>>)

Alibaba shares have declined -1.8% over the year to date period as against the Zacks Internet - Commerce industry’s decline of -3.2%. The Zacks analyst believes that the increasing investments might hurt its profitability. Rising expenses associated with new initiatives remain overhang. It also continues to face growing competition from domestic as well as foreign e-commerce companies despite its strong e-commerce platform. Intensifying competition in the cloud market does not bode well for its initiatives toward global expansion. Furthermore, the company’s increasing regulatory concerns in China are headwinds.

However, the company’s New Retail strategy which is gaining momentum in the market is acting as a tailwind. This is aiding growth in Tmall Import, Freshippo and Intime Department Stores. Furthermore, well-performing Cainiao logistics services are contributing well.

(You can read the full research report on Alibaba here >>>)

Other noteworthy reports we are featuring today include Exxon Mobil Corporation (XOM), Oracle Corporation (ORCL) and NIKE, Inc. (NKE).

Sheraz Mian
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>>>

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