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Top Research Reports for UnitedHealth, United Technologies & Eni

Mark Vickery
Top Research Reports for UnitedHealth, United Technologies & Eni

Wednesday, May 23, 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 UnitedHealth (UNH), United Technologies (UTX) and Eni (E). 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 >>>

Buy-ranked UnitedHealth's shares have outperformed the Zacks Medical Insurance industry year to date (up +11.2% vs. +8.2%). The Zacks analyst thinks the company's robust Government business and continued strong performance at Optum are driving long-term growth. Its international business and strong capital position driving business investment are the other positives.

The company has been witnessing an increase in membership over the past many years. It again lifted its 2018 earnings guidance, buoying optimism among investors in the stock.

However, membership loss in its fee-based commercial as well as Brazilian businesses will contract the overall membership growth for UnitedHealth Group. Additionally, higher medical care ratio raises concern.

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

Shares of United Technologies have gained +4.7% in the last year, outperforming the Zacks Diversified Operations industry, which has lost -11.6% over the same period. United Technologies serves various end-markets.

The Zacks analyst thinks that this allows it to remain profitable even during tough economic conditions. The company has offered a bullish guidance for 2018 on healthy demand trends and is likely to deliver sustainable earnings growth in future with Rockwell merger. United Technologies remains focused on four key priorities: flawless execution, innovation, structural cost reduction and disciplined capital allocation to fuel its growth engine.

However, fluctuations in foreign currency exchange rates may affect the company’s bottom-line growth. In addition, a disruption in deliveries from suppliers, capacity constraints, production disruptions, price changes or decreased availability of raw materials or commodities is likely to have an adverse effect on the company’s ability to meet delivery schedules, thereby increasing its operating costs.

(You can read the full research report on United Technologies here >>>).

Eni's shares have gained +13.2% in the last year, underperforming the Zacks Integrated Oil industry which has gained +30% over the same period. Eni has prospective upstream projects in Angola, Egypt, Ghana, Indonesia and Kazakhstan. This is likely to aid the company achieve 4% targeted output growth through 2021. In fact, year-over-year increase in oil and natural gas production has supported the company’s strong first-quarter 2018 earnings.

Eni intends to raise the dividend for 2018 to €0.83 per share, up 3.75% from the level in 2017. This reflects the integrated energy player's strong commitment of returning cash to the shareholders. However, Eni's debt level is higher than the industry average. Also, the recovery of crude prices has been affecting the company’s refining businesses.

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

Other noteworthy reports we are featuring today include Sanofi (SNY), Arista (ANET) and Discovery (DISCA).

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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

Strong Service and Benefit Business Aids UnitedHealth (UNH)

Weak Fire & Security Unit Hurts United Technologies (UTX)

Eni (E) Banks on Upstream Project in Egypt, Faces High Debts

Featured Reports

Strong Consumer to Consumer Business Aids Western Union (WU)

Per the Zacks analyst Consumer-to-Consumer business had aided revenue growth and will remain attractive driven by improvement in cross-border remittance and strong growth in digital platform.

Investments Aid Public Service Enterprise's (PEG) Growth

Per the Zacks analyst, investments help Public Service Enterprise to make infrastructural upgrades. Yet it faces rigorous environmental regulations, failure to comply with which may hurt earnings.

Solid Adoption of Flexroute & CloudVision Aid Arista (ANET)

Per the Zacks analyst, Arista benefits from strength in its Flexroute and CloudVision products. Expanding clientele, robust demand of 'Cloud Titans' vertical are other positives.

Higher U.S. Land Activity Boosts Helmerich & Payne (HP)

The Zacks analyst likes higher utilization at Helmerich & Payne's key U.S. Land segment.

TransUnion (TRU) Gains from Partnership with SavvyMoney

The Zacks analyst believes that strategic partnership with SavvyMoney is helping TransUnion to enhance its financial data analytical offerings.

Scripps buyout Aids Discovery's (DISCA) Portfolio Expansion

Per the Zacks analyst, the completion of the Scripps buyout is positive for Discovery as its product portfolio has widened significantly.

Growth Projects Aid Agnico Eagle (AEM) Amid Higher Unit Cost

The Zacks analyst is impressed with Agnico Eagle's progress with its key growth projects and actions to boost mine life.

New Upgrades

Engineered Films to Drive Raven Industries' (RAVN) Revenues

Per the Zacks analyst, solid traction of Raven Industries' Engineered Films business, fueled by organic growth and acquisition of Colorado Lining International, should continue to drive its revenues.

Dillard's (DDS) to Gain from a Strong Customer Base

Per the Zacks analyst, Dillard's is poised to gain from focus on increasing productivity, enhancing domestic operations and developing an omni-channel platform, which should strengthen customer base.

Anasys Buyout Synergy Bright for Bruker (BRKR) Spectrometers

The Zacks analyst is encouraged by Bruker's acquisition of Anasys Instruments which should boost the company's Raman and FTIR spectrometers as well as nanoscale surface science instruments businesses.

New Downgrades

Dupixent Key to Sanofi's (SNY) Growth Amid Diabetes Woes

The Zacks analyst believes that new atopic dermatitis drug, Dupixent could prove to be an important growth driver for Sanofi. However, the company's Diabetes franchise is under significant pressure.

Costs From Sales Building Efforts Hurt Cracker Barrel (CBRL)

The Zacks analyst is apprehensive about Cracker Barrel's margins which is affected by increased costs due to various sales boosting initiatives and commodity inflation.

Higher Expenses to Weigh on American Eagle's (AEO) Margins

Per the Zacks analyst, American Eagle's margins are likely to remain under pressure owing to higher promotional expenses.

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United Technologies Corporation (UTX) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Sanofi (SNY) : Free Stock Analysis Report
Eni SpA (E) : Free Stock Analysis Report
Discovery Communications, Inc. (DISCA) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
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