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Top Research Reports for UnitedHealth, CVS & Morgan Stanley

Sheraz Mian

Monday, January 13, 2020

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 (UNH), CVS Health (CVS) and Morgan Stanley (MS). 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’s shares have underperformed the Zacks Medical Insurance industry over the past year (+19% vs. +19.3%). The Zacks analyst believes that UnitedHealth Group stands apart in the industry by virtue of healthcare services, technology and innovations offered by its unit, Optum.

Numerous acquisitions made by the company have led to inorganic growth. Its solid balance sheet and consistent cash flow generation enable investment in business. Also, capital management by dividend payout and share buyback is another positive. Strong earnings guidance by the company instills investors' confidence.

The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 0.8% upward over the last 60 days. The slowdown of growth in international operations and underperformance in Medicaid business are some concerns.

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

Shares of CVS have gained +14.5% in the past three months against the Zacks Retail Pharmacies and Drug Stores industry's rise of +10.1%. The Zacks analyst is pleased with its solid progress in terms of the 2020 selling season. The company has started to witness increased customer traffic and incremental sales in pharmacy front store and MinuteClinics.

The company successfully executed its strategic priorities, resulting in all three of the company’s segments performing in line with, or above its expectations. The Health Care Benefits segment, launched after the Aetna acquisition, is showing strong momentum. The company posted better-than-expected third-quarter results on the back of robust progresses.

However, persistent reimbursement pressure and the impact of recent generic introductions dented the company’s retail LTC business growth. Also, Omnicare business performance should continue to remain soft through the rest of 2019.

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

Morgan Stanley's shares have gained +17.5% over the past six months against the Zacks Investment Banking industry's rise of +11.4%. The Zacks analyst believes that steady loan growth, strong balance sheet position and the company's continued focus on its corporate lending business are expected to continue to aid profitability.

The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Notably, the acquisition of Solium Capital is in sync with the company’s efforts to further strengthen its wealth management business.

However, weaknesses in investment banking and trading are expected to hinder fee income growth to some extent and hurt the company’s top line. Moreover, given the decline in interest rates and a tough operating backdrop, the company’s performance is expected to remain sluggish in the near term.

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

Other noteworthy reports we are featuring today include Enbridge (ENB), Charles Schwab (SCHW) and Uber Technologies (UBER).

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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>>>

Today's Must Read

Strong Service and Benefit Business Aids UnitedHealth (UNH)

Strong PBM Selling Season, Aetna Synergy Aid CVS Health (CVS)

Restructuring Efforts Aid Morgan Stanley (MS), Costs a Woe

Featured Reports

Rising Demand Aids General Dynamics (GD), Competition Hurts

Per the Zacks Analyst, a strong rise in demand for the company's varied defense products leads to organic growth. However, it faces stiff market competition due to peer price pressure.

Enbridge (ENB) Banks on $11B Inventory of Midstream Projects

Enbridge will generate stable fee-based revenues from its $11-billion inventory of midstream growth projects.

Suncor (SU) Buoyed by Fort Hills and Syncrude Operations

The Zacks analyst believes that production ramp-ups at Suncor's major projects, including Fort Hills and Syncrude, should support its growth momentum and earnings.

Revenues from Rides Aid Uber (UBER) Amid Cost Woes

The Zacks analyst is impressed by the company's top line growth, courtesy of strong ridesharing revenues.

Energy Drinks Category Aids Growth at Monster Beverage (MNST)

Per the Zacks analyst, Monster Beverage is experiencing continued strength in its energy drinks category driven by its Monster Energy brand.

Online-to-Offline Payment Offerings Aid MercadoLibre (MELI)

Per the Zacks analyst, MercadoLibre benefits from solid total payment volume growth which is driven by its strong momentum across online-to-offline payment offerings, thanks to robust MPOS business.

Acquisitions, Trading Focus Support Schwab (SCHW) Revenues

Per the Zacks analyst, Schwab's planned buyouts of TD Ameritrade and USAA's Investment Management Company will help diversify revenues. This along with focus on trading revenues bodes well for growth.

New Upgrades

Lyft's (LYFT) Top Line Aided by Active Rider Growth

The Zacks Analyst is impressed with the uptick in Active Riders. This, in turn, is benefiting its top line. Its focus on the market for self-driving cars is also encouraging.

Product Innovation & Cost Control to Drive Manitowoc (MTW)

Per the Zacks Analyst, product innovation, solid pipeline of acquisitions as well as focus on cost controls and increasing productivity are likely to drive Manitowoc's results.

t:slim X2 Rollout, Favorable Market Trends Aid Tandem (TNDM)

The Zacks analyst is bullish about Tandem's strong international rollout of t:slim X2 insulin pump. Huge global demand for diabetes care devices on favourable market trends is another growth driver.n

New Downgrades

Canadian National (CNI) Stung by Low Volumes & High Debts

The Zacks Analyst is worried about the company's high debt levels. Moreover, the eight-day rail strike at Canadian National crippled its operations, thereby hurting shipment volumes.

Margin Contraction Plagues Cardiovascular Systems (CSII)

The Zacks analyst is concerned about the persistent operating losses incurred by Cardiovascular Systems. Tough competition in the stent and balloon angioplasty market is another concern.

Aptiv (APTV) Grapples With Weak Global Vehicle Production

The Zacks analyst believes that prevalent regional uncertainties and fluctuation in automotive production and sales will continue to weigh on Aptiv's business performance.


UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report

Uber Technologies, Inc. (UBER) : Free Stock Analysis Report

The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report

Morgan Stanley (MS) : Free Stock Analysis Report

Enbridge Inc (ENB) : Free Stock Analysis Report

CVS Health Corporation (CVS) : Free Stock Analysis Report

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