Top Stock Reports for UnitedHealth, Johnson & Johnson & Oracle
Wednesday, March 13, 2024
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 Inc. (UNH), Johnson & Johnson (JNJ) and Oracle Corp. (ORCL). 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 >>>
Shares of UnitedHealth have gained +7.7% over the past year against the Zacks Medical - HMOs industry’s gain of +9.3%. The company’s top line remains 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 in the future. Adjusted net earnings per share are anticipated to be in the $27.5-$28.00 band in 2024, higher than the 2023 figure of $25.12. A sturdy balance sheet enables business investments and prudent deployment of capital via share repurchases and dividend payments.
However, membership in its global business continues to be a concern. High operating costs due to rising medical expenses are hurting margins. As such, the stock warrants a cautious stance.
(You can read the full research report on UnitedHealth here >>>)
Johnson & Johnson’s shares have gained +8.0% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +37.2%. The company’s innovative Medicine unit is performing at above-market levels. Its growth is being driven by existing products like Darzalex, Stelara, Tremfya and Erleada, and also the continued uptake of new launches, including Spravato, Carvykti and Tecvayli.
The MedTech unit is showing improving trends, driven by a recovery in surgical procedures and contribution from new products. J&J is making rapid progress with its pipeline and line extensions.
However, headwinds like generic competition and pricing pressure continue. J&J faces the upcoming patent expiration of Stelara. Though it has taken meaningful steps to resolve its talc and opioid litigation, uncertainty regarding the talc litigations persists.
(You can read the full research report on Johnson & Johnson here >>>)
Shares of Oracle have gained +52.6% over the past year against the Zacks Computer - Software industry’s gain of +58.4%. The company’s third-quarter fiscal 2023 results benefited from the steady adoption of strategic cloud applications, autonomous database and OCI, as well as a recovery in cloud revenue growth.
Oracle’s Gen 2 Cloud is driving artificial intelligence (AI) clientele because of better performance at a lower cost due to high bandwidth and low-latency RDMA networks. ORCL’s continued investment in cloud infrastructure positions it well for sustained growth in the dynamic software industry. Its share buybacks and dividend policy are noteworthy.
However, the uncertain economy and competition in the cloud computing market weighed on demand for its cloud offerings. Stiff competition in the cloud market is slowing down the growth of its expansion efforts in the competitive market.
(You can read the full research report on Oracle here >>>)
Other noteworthy reports we are featuring today include Adobe Inc. (ADBE), Wells Fargo & Co. (WFC) and Caterpillar Inc. (CAT).
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
Solid Top Line & Strong Cash Flows Drive UnitedHealth (UNH)
J&J's (JNJ) Innovative Medicine & MedTech Units Drive Growth
Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships
Featured Reports
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
Per the Zacks analyst, Adobe is benefiting from strengthening demand for its Creative Cloud, Document Cloud and Experience Cloud products.
Cost Control Aids Wells Fargo (WFC) Amid Declining Revenues
Per the Zacks analyst, Wells Fargo's cost-saving measures like branch closures and headcount reduction will help offset falling revenue trends due to business divestures and volatile fee income.
Caterpillar (CAT) to Gain on Strong Demand in End Markets
Per the Zacks analyst, solid backlog, improving end-market demand and focus on making strategic investments in expanded offerings, services and digital initiatives will drive Caterpillar's results.
Southern Company (SO) Buoyed by Regulated Customer Growth
The Zacks analyst believes that increase in Southern's regulated business customer base will support its revenue growth but is concerned over timing and cost overrun related to Vogtle project.
Prudent Buyouts Fuel Hershey (HSY), High Costs a Trouble
Per the Zacks analyst, Hershey is set to keep benefiting from strategic acquisitions. However, increased selling, marketing and administrative expenses is a concern for the company.
VeriSign (VRSN) to Benefit from Price Hike for Domain Names
Per the Zacks analyst, VeriSign is likely to gain from slated price hikes for the .com and .net domain names, going ahead. Declining demand from China to affect domain name growth in the near term.
ABM Industries (ABM) to Gain From ELEVATE Amid Rising Costs
Per the Zacks analyst, ABM's multi-year comprehensive strategic plan, ELEVATE, is expected to accelerate the company's organic growth and reinforce profitability. Rising expenses are headwinds.
New Upgrades
Robust Backlog Growth & Lot Acquisition Strategy aid NVR
Per the Zacks analyst, NVR is benefiting from growth in new orders and reduced cancellation rates, thanks to the low supply of existing homes. Also, the company's lot acquisition strategy bode well.
Focus on Spec Homes & First-Time Buyers to Aid MDC
Per the Zacks analyst, MDC is likely to benefits from its focus on entry-level homes. Also, emphasis on spec-driven operating model bodes well.
Solid Retention Rates, Better Pricing Aid Palomar (PLMR)
Per the Zacks analyst, Palomar should grow on the strength of increased volume of policies fueled by strong premium retention rates, new partnerships, rate increases and new business generated.
New Downgrades
Ongoing Litigations, Massive Debt Weigh on Bayer (BAYRY)
Per the Zacks analyst, decreased prices for glyphosate-based products in the Crop Science division continues to pull down Bayer's growth. Ongoing litigation and high levels of debt are concerns too.
Intense competition, Strict Regulations Ail NRG Energy (NRG)
Per the Zacks analyst, NRG Energy's operations are subject to extensive regulations at both federal and state levels. Strong competition in the wholesale power markets impede the company's growth.
Healthcare Industry Regulations Ail AMN Healthcare (AMN)
The Zacks analyst is worried about AMN Healthcare being subject to extensive and complex federal and state laws and regulations. Consolidation of healthcare delivery units is an added woe.
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Wells Fargo & Company (WFC) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
