Top Research Reports for Facebook, UnitedHealth & Pfizer
Tuesday, April 3, 2018
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 Facebook (FB), UnitedHealth (UNH) and Pfizer (PFE). 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 >>>
Facebook shares have underperformed the S&P 500 index in the last three months, losing -15.7% vs. -5.3%. Facebook has been battered by the recent data leak, which reportedly affected 50 million users. The fiasco has sparked concerns about user privacy on the platform. The incident not only grabbed the attention of government regulators worldwide but also fetched harsh criticism from the likes of Apple CEO Tim Cook.
Although CEO Mark Zuckerberg has apologized, it may not be enough to restore user as well as advertiser trust immediately. But the Zacks analyst thinks Facebook’s efforts to plug security loopholes as well as limit fake news will eventually boost trustworthiness.
The company’s focus on building strong “community” can hurt engagement over the next few quarters, the steps are prudent enough to expand user base over the long run. Meanwhile, estimates have been stable ahead of the company’s Q1 earnings release. Facebook has positive record of earnings surprises in recent quarters.
(You can read the full research report on Facebook here >>>).
Shares of Buy-rated UnitedHealth have underperformed the Zacks Medical Insurance industry over the last six months (up +8.4% vs. +8.8%). The Zacks analyst likes the company’s robust Government business and continued strong growth at Optum, which are driving long-term growth. Its international business and strong capital position that allows for business investment are the other positives. It has been witnessing an increase in membership from past many years.
The company raised its 2018 earnings guidance led by tax reform upside. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised upward over the last 90 days. Nevertheless, membership loss in its fee based commercial business and Brazilian business will pull down the overall membership growth.
(You can read the full research report on UnitedHealth here >>>).
Buy-rated Pfizer’s shares have outperformed the peer group over the last three months (the stock is down -4.7% over this period vs. a -7.1% decline for the Zacks Large-Cap Pharmaceuticals industry). Pfizer continues to face headwinds in the form of genericization of key drugs, supply challenges in the legacy Hospira portfolio, pricing pressure and rising competition, which are hurting the top line.
However, the Zacks analyst thinks new products like Ibrance, contribution from acquisitions, cost cuts and share buybacks should help the company achieve its guidance. Pfizer also boasts a strong pipeline and expects approximately 25 to 30 drug approvals over the next five years, including around 15 products that have blockbuster potential.
Pfizer’s growing immuno-oncology portfolio offers a strong potential. Bavencio is being considered a key long-term growth driver for Pfizer. Pfizer has a positive record of earnings surprises in recent quarters. Estimates have gone up slightly ahead of its Q1 earnings release.
(You can read the full research report on Pfizer here >>>).
Other noteworthy reports we are featuring today include Marsh & McLennan (MMC), McDonald's (MCD) and MetLife (MET).
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Mark Vickery
Senior Editor
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>>>
Today's Must Read
Data Leak, Criticism From Apple CEO Batters Facebook (FB)
Strong Optum, Solid Balance Sheet Aids UnitedHealth (UNH)
Pfizer's (PFE) New Drugs, Cost Cuts & Lower Tax to Aid Profits
Featured Reports
Concho (CXO) to Scale Up Operations with RSP Permian Buy
The Zacks analyst believes that Concho Resources' $9.5 billion acquisition of RSP Permian will bolster the scale and leadership position of the combined entity in the prolific Permian oil play.
Strong Business Model Aids Broadridge (BR) Amid Competition
The Zacks analyst likes Broadridge's strategic buyouts, product launches, share repurchases and dividend payouts.
High Material Prices Mar Cintas' (CTAS) Holistic Growth Focus
Per the Zacks analyst, Cintas aims to achieve revenue build-up through holistic growth focus although high raw material prices make it susceptible to market risks which are beyond its control.
Solid E-commerce Momentum to Bolster Hibbett's (HIBB) Sales
Per the Zacks analyst, Hibbett is poised to gain from its new e-commerce site that helped contribute 7.6% to sales in fourth-quarter.
Business Streamlining, Solid Balance Sheet Aid MetLife (MET)
Per the Zacks analyst, exit of U.S Retail unit, closing of UK Wealth Management business has freed MetLife from high-risk, non-core operations.
Eni (E) to Gain from Strong Oil and Gas Production Growth
The Zacks analyst believes project start-ups in Angola, Egypt, Ghana, Indonesia and Kazakhstan will aid Eni's 4% targeted output growth through 2021 but is worried over high exploration costs.
HPMC Division Strength, Cost Cuts to Aid Allegheny (ATI)
According to the Zacks analyst, strong performance in Allegheny's HPMC unit coupled with efforts to improve its cost structure with gross cost-reduction initiatives will drive its earnings in 2018.
New Upgrades
Robust Demand for the Impella Platform Boosts Abiomed (ABMD)
The Zacks analyst believes that robust demand for the Impella line will continue to drive Abiomed's top line. The company also received the FDA pre-market approval (PMA) for its Impella CP heart pump.
Rising Corrugated Packaging Demand to Drive WestRock (WRK)
Per the Zacks analyst, WestRock's strategy to capitalize on growing demand for corrugated packaging will drive growth. The pending KapStone deal is another step in sync with the strategy.
Marsh & McLennan's (MMC) Margin Gains from Cost Management
Per the Zacks analyst, implementation of cost-saving initiatives by divesting redundant units and moderating its expenses on compensation and benefits have aided Marsh & McLennan's bottom line.
New Downgrades
Dependence on Coal, Rising Debts Ail WEC Energy Group (WEC)
The Zacks analyst believes WEC Energy's coal focused electricity production and rising total debts amid increasing interest rates could adversely impact its performance in the long run.
Low Interest Rates Continue to Hurt UBS Group's (UBS) NII
Per the Zacks analyst, UBS Group's net interest income continue to remain under pressure due to the prevailing low rate environment in the European economy. Also, higher legal costs remain a concern.
Stiff Competition Weighs on McDonald's (MCD) Sales Efforts
The Zacks analyst expects competition among fast-casual restaurants to remain fierce on price, service, location and concept, thus keeping McDonald's revenues and margins under pressure.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
MetLife, Inc. (MET) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
