Wednesday, October 11, 2023

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), Chevron Corporation (CVX) and AstraZeneca PLC (AZN). 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 modestly outperformed the Zacks Medical - HMOs industry over the past year (+4.3% vs. +3.9%), but have lagged the broader market (+4.3% vs. +22.2%). The company’s top line remains well-poised for growth on the back of a strong market position, new deals, renewed agreements and expansion of service offerings.

UnitedHealth’s solid health services segment provides diversification benefits. The Government business remains well-poised for growth. A sturdy balance sheet enables business investments and prudent deployment of capital via share repurchases and dividends.

However, membership in its global business continues to decline. High operating costs are hurting margins. As such, the stock warrants a cautious stance.

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

Shares of Chevron have gained +9.5% over the past year against the Zacks Oil and Gas - Integrated - International industry’s gain of +20.0%. The company is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up.

America’s No. 2 energy firm’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin. As a reflection of these positives, we saw CVX’s EPS jump 132% in 2022. However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially.

The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of energy produced.

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

AstraZeneca shares have gained +26.1% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +28.7%. The company enjoys a diverse product portfolio and a global footprint. AstraZeneca’s key drugs like Lynparza, Tagrisso, Imfinzi, Fasenra and Farxiga should keep driving revenues. Almost all non-COVID therapy areas of AstraZeneca demonstrated double-digit revenue growth in the first half of 2023.

AstraZeneca’s pipeline is strong with important phase III data readouts lined up. It has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. The Alexion buyout has added drugs like Ultomiris that are boosting its top line.

However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales have slowed down in its key market, China.

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

Other noteworthy reports we are featuring today include Adobe Inc. (ADBE), Pfizer Inc. (PFE) and AT&T Inc. (T).

Director of Research

Sheraz Mian

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>>>