Thursday, May 14, 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), AT&T (T) and Netflix (NFLX). 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 outperformed the Zacks Medical Insurance industry over the past year (+18.7% vs. +11.7%). The Zacks analyst believes that UnitedHealth has been benefiting from higher segmental contributions, which helped it counter the fallout from the coronavirus-led crunch.
It stands out from the rest in its industry by virtue of healthcare services, technology and innovations offered by its unit, Optum. Its numerous acquisitions bolstered its inorganic growth profile. Its revenues should continue to grow, driven by a strong market position and an attractive core business.
Its solid balance sheet and consistent cash flow generation encourage investment in business. By retaining its 2020 earnings guidance, the company restores investor confidence. However, the company is witnessing a slowdown in its international operations. Commercial membership may also suffer due to increased joblessness.
(You can read the full research report on UnitedHealth here >>>)
Shares of AT&T have lost -29.1% over the past six months against the Zacks Wireless National industry’s fall of -15.6%. The Zacks analyst believes that AT&T is well positioned to benefit from streaming services like AT&T TV and soon-to-be launched HBO Max.
AT&T reported relatively modest first-quarter 2020 results as coronavirus pandemic hit top-line growth, fueling uncertainty within the organization and limiting future visibility. The company is witnessing a steady decline in linear TV subscribers and legacy services. Its wireline division is also facing loss in access line due to competitive pressure from VoIP service providers.
As AT&T tries to woo customers with discounts, freebies and cash credits, margin fears tend to soar. However, the company is committed to its three-year financial framework with sustained investments and debt-reduction efforts. AT&T intends to deploy a standards-based, nationwide mobile 5G network in 2020 to fuel its growth engine.
(You can read the full research report on AT&T here >>>)
Netflix’s shares have gained +15.4% over the past three months against the Zacks Broadcast Radio and Television industry’s fall of -6.3%. The Zacks analyst believes that the company is dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content and an expanding international footprint.
Netflix’s first-quarter 2020 results benefited from strong subscriber growth as more and more people were compelled to stay at home due to the coronavirus pandemic. However, Netflix expects viewing and subscriber growth to decline once the coronavirus-related lockdowns and movement restrictions are lifted.
Moreover, absence of new seasons for popular shows like Money Heist and Stranger Things is expected to affect subscriber growth in the third and fourth quarter of 2020.
(You can read the full research report on Netflix here >>>)
Other noteworthy reports we are featuring today include Procter & Gamble (PG), International Business Machines (IBM) and BlackRock (BLK).
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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)
AT&T (T) Rides on Streaming Services, Pledges to Reduce Debt
Robust Content Aids Netflix (NFLX) Amid Stiff Competition
P&G (PG) Gains from Higher Coronavirus-Led Product Demand
Per the Zacks analyst, P&G is witnessing increased demand for its health, hygiene and cleaning products amid coronavirus pandemic.
Solid Adoption of Cloud Solutions Aids IBM Amid High Debt
Per the Zacks analyst, IBM's improving position in the hosted cloud, security and analytics domains hold promise.
Active Equity Focus Aids BlackRock (BLK), High Costs a Woe
Per the Zacks analyst, BlackRock's efforts to restructure its active equity business will support revenue growth.
Dr. Reddy's (RDY) Robust Generics Portfolio Driving Growth
Per the Zacks analyst, Dr. Reddy's enjoys a strong position in the generics market which is driving growth at the company.
Strong Equipment Demand Drives Lam Research (LRCX); Risks Remain
The Zacks analyst believes that robust equipment demand and non-memory segments will remain growth drivers.
BCE Rides on Network Leadership Amid the COVID-19 Crisis
Per the Zacks analyst, BCE's Bell continues to benefit from broadband wireless, Internet and IPTV subscriber base expansion despite reduced commercial activity resulting from the COVID-19 situation.
Robust Critical Care Arm Aids ResMed (RMD) Amid the Pandemic
The Zacks analyst is impressed with robust uptick in ResMed's ventilators and mask sales amid the coronavirus-led economic crisis. Further, potential in digital health buoys optimism.
Solid Repair/Remodel Market to Aid Louisiana-Pacific (LPX)
Per the Zacks analyst, resilient repair & remodeling market and ample liquidity will help Louisiana-Pacific to tide over the uncertain situation arising from coronavirus outbreak.
Reduced Fuel Expenses Boost Copa Holdings (CPA)
The Zacks analyst is appreciative of lower oil prices, which is aiding the bottom line. Fuel expenses fell 19.5% in Q1. Decline in long-term debt in the quarter is encouraging too.
Puma Biotech (PBYI) Rides High on Robust Nerlynx Performance
Per the Zacks analyst, Puma Biotech focuses on improving sales of its only marketed drug Nerlynx, which is approved for treating breast cancer.
General Motors (GM) Hurt by Coronavirus Woes & High R&D Cost
Per the Zacks analyst, low vehicle demand amid coronavirus woes will weigh on General Motors' near-term sales. The firm's ambitious EV plans are likely to flare up R&D costs, in turn denting margins.
Rising Expenses, Concentration Risk Hurts Comerica (CMA)
Per the Zacks analyst, consistently rising expenses on accounts of investments in technology impacts Comerica's financials. Also, substantial exposure to commercial loans keeps us apprehensive.
Weak Surface Technologies Unit to Weigh on TechnipFMC (FTI)
The Zacks analyst believes that operating profit of TechnipFMC's Surface Technologies unit will be under pressure due to lower North American drilling activity.
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
ATT Inc. (T) : Free Stock Analysis Report
Procter Gamble Company The (PG) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
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