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The Zacks Analyst Blog Highlights Microsoft, UnitedHealth Group, HSBC Holdings, IBM and Honeywell International
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For Immediate Release
Chicago, IL – September 26, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft Corp. (MSFT - Free Report) , UnitedHealth Group Inc. (UNH - Free Report) , HSBC Holdings plc (HSBC - Free Report) , IBM Corp. (IBM - Free Report) and Honeywell International Inc. (HON - Free Report) .
Here are highlights from Monday’s Analyst Blog:
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 Microsoft Corp., UnitedHealth Group Inc. and HSBC Holdings plc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Microsoft shares have gained +33.1% over the year-to-date period against the Zacks Computer - Software industry's gain of +34.3%, but have handily outperformed the broader market's +13.7% gain. The company is benefitting from consistent execution across renewal sales motions, including strong recapture rates and slow yet steady growth in Azure cloud platform amid accelerated global digital transformation.
Solid adoption of ChatGPT, the popular chatbot from OpenAI, remains a tailwind. Slow yet steady performance of Office 365 and Dynamics is aiding user growth thereby driving the top-line. Strength in Marketing Solutions and steady performance in Talent Solutions is driving LinkedIn revenues boosted by recovery in advertising and job market.
However, a slowdown in its cloud business and declining videogame sales are overhangs. Decrease in demand for Xbox content and services and increasing spend on Azure enhancements amid stiff competition in the cloud space remains a concern.
Shares of UnitedHealth have gained +5.9% over the past six months against the Zacks Medical - HMOs industry's gain of +7%. 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.
Shares of HSBC have outperformed the Zacks Banks - Foreign industry over the year-to-date period (+34.2% vs. +12.4%). A strong capital position, high interest rates, an extensive network and business restructuring initiatives will support the company's prospects going forward.
HSBC is winding down retail operations in France, New Zealand and Canada and fully exiting Russia. These are expected to further help the bank to focus more on the Asia region. While efforts to improve market share in the region will aid financials, these will lead to a rise in expenses. Management expects expenses to increase 3% this year, and the acquisition of SVB UK will likely add another 1% to it.
The worsening macroeconomic operating backdrop is a major headwind. Nonetheless, the company's strong brand value and widespread network will help it attract more clients. Its capital distributions remain decent.
Other noteworthy reports we are featuring today include IBM Corp. and Honeywell International Inc.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Microsoft, UnitedHealth Group, HSBC Holdings, IBM and Honeywell International
For Immediate Release
Chicago, IL – September 26, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft Corp. (MSFT - Free Report) , UnitedHealth Group Inc. (UNH - Free Report) , HSBC Holdings plc (HSBC - Free Report) , IBM Corp. (IBM - Free Report) and Honeywell International Inc. (HON - Free Report) .
Here are highlights from Monday’s Analyst Blog:
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 Microsoft Corp., UnitedHealth Group Inc. and HSBC Holdings plc. 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 >>>
Microsoft shares have gained +33.1% over the year-to-date period against the Zacks Computer - Software industry's gain of +34.3%, but have handily outperformed the broader market's +13.7% gain. The company is benefitting from consistent execution across renewal sales motions, including strong recapture rates and slow yet steady growth in Azure cloud platform amid accelerated global digital transformation.
Solid adoption of ChatGPT, the popular chatbot from OpenAI, remains a tailwind. Slow yet steady performance of Office 365 and Dynamics is aiding user growth thereby driving the top-line. Strength in Marketing Solutions and steady performance in Talent Solutions is driving LinkedIn revenues boosted by recovery in advertising and job market.
However, a slowdown in its cloud business and declining videogame sales are overhangs. Decrease in demand for Xbox content and services and increasing spend on Azure enhancements amid stiff competition in the cloud space remains a concern.
(You can read the full research report on Microsoft here >>>)
Shares of UnitedHealth have gained +5.9% over the past six months against the Zacks Medical - HMOs industry's gain of +7%. 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 HSBC have outperformed the Zacks Banks - Foreign industry over the year-to-date period (+34.2% vs. +12.4%). A strong capital position, high interest rates, an extensive network and business restructuring initiatives will support the company's prospects going forward.
HSBC is winding down retail operations in France, New Zealand and Canada and fully exiting Russia. These are expected to further help the bank to focus more on the Asia region. While efforts to improve market share in the region will aid financials, these will lead to a rise in expenses. Management expects expenses to increase 3% this year, and the acquisition of SVB UK will likely add another 1% to it.
The worsening macroeconomic operating backdrop is a major headwind. Nonetheless, the company's strong brand value and widespread network will help it attract more clients. Its capital distributions remain decent.
(You can read the full research report on HSBC here >>>)
Other noteworthy reports we are featuring today include IBM Corp. and Honeywell International Inc.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.