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Top Stock Reports for UnitedHealth, salesforce & GlaxoSmithKline

Mark Vickery
·6 min read

Friday, November 20, 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), salesforce.com (CRM) and GlaxoSmithKline (GSK). 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 shares have outperformed the Zacks Medical Insurance industry in the year to date period (+13.4% vs. +5.5%). The Zacks analyst believes that the company’s top line is bolstered by new deals, renewed agreements and expansion of service offerings. Its numerous acquisitions bode well for its inorganic growth profile.

Expansion of the company’s health services segment provides significant diversification benefits. UnitedHealth remains well poised to benefit from its government business, comprising both Medicaid and Medicare Advantage. A solid balance sheet and consistent cash flow generation not only encourage investments in business but also add shareholder value.

The raising of 2020 earnings guidance instills investor confidence. However, the company is witnessing a slowdown in its international operations. Increased joblessness stemming from the COVID-19 induced volatilities might hurt Commercial membership. 

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

Shares of salesforce.com have gained +62.1% over the past year against the Zacks Computer Software industry’s rise of +33.9%. The Zacks analyst believes that salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation.

The rapid adoption of its cloud-based solutions is driving demand for its products. salesforce’s sustained focus on introducing more aligned products as per customer needs is driving its top-line. Continued deal wins in the international market is another growth driver.

Furthermore, the recent acquisition of Tableau positions the company to be a leader in business analytics for actionable results in everything from operations to HR. However, stiff competition from Oracle and Microsoft is a concern. Besides, unfavorable currency fluctuations along with increasing investments in international expansions and data centers are an overhang on near-term profitability.

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

Glaxo’s shares have lost -9.7% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s rise of +1.2%. The Zacks analyst believes that several new drug/line extension approvals that are expected in 2021 would boost the company’s top line in the long term.

Glaxo’s new and specialty products like Nucala, Trelegy Ellipta, Shingrix and Juluca, are delivering a strong performance, making up for a decline in Established Pharmaceuticals due to generic erosion. Glaxo has made significant progress in its oncology pipeline and doubled its assets in development since 2018.

However, pricing pressure and competitive dynamics due to generic competition for key drug, Advair, are hampering sales of Glaxo’s respiratory products. Competitive pressure on HIV drugs has risen. Slowdown in vaccination rates hurt sales of its key vaccines, mainly Shingrix, in 2020.

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

Other noteworthy reports we are featuring today include Square (SQ), Blackstone Group (BX) and American Electric Power (AEP).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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)

Digital Transformation and Acquisitions Aid salesforce (CRM)

Glaxo's (GSK) Cancer Pipeline Grows Amid Rising Competition

Featured Reports

Square (SQ) Banks on Solid Cash App Adoption, Bitcoin Growth

Per the Zacks analyst, Square is benefiting from strong Cash App engagement and its growing active customer base.

Investments Aid American Electric (AEP), Sales Decline Ails

Per the Zacks analyst, steady investments in its transmission and distribution business boost American Electric's customer reliability.

Fund-Raising Ability Aids Blackstone (BX), High Costs Ails

Per the Zacks analyst, Blackstone's fund raising capability and asset inflows will likely aid profitability. However, elevated costs and low dividend sustainability are major concerns.

General Mills (GIS) Gains From Coronavirus-Led Demand

Per the Zacks analyst, General Mills (GIS) is gaining from high demand due to coronavirus-led elevated at-home consumption.

Investments & Expanding Customer Base Aid Xcel Energy (XEL)

Per the Zacks analyst, Xcel's investment of $22.6 billion in the next five years to fortify infrastructure, while rising electric and natural gas customer base will boost demand and profitability.

Restructuring Aids Ameriprise (AMP), Asset Outflows a Woe

Per the Zacks analyst, Ameriprise's efforts to restructure the business and modify product offerings will support revenue growth.

Diversified Business to Aid Nordson (NDSN), Industrial Weakness Ail

Per a Zacks analyst, Nordson (NDSN) is poised to benefit from a diversified business structure, with exposure in various industries like packaging, electronics, non-wovens, and others.

New Upgrades

Dow (DOW) Gains from Cost Actions, Project Investment

According to the Zacks analyst, Dow is well placed to benefit from cost synergy savings and productivity initiatives and its investment in high-return growth projects.

Robust EHR and EMR Platforms Continues to Aid Cerner (CERN)

Per the Zacks analyst, sustained strength in the lucrative EHR (Electronic Health Record) and EMR (Electronic Medical Record) platforms continue to boost Cerner's growth prospects.

Selective Insurance (SIGI) Premiums Aid, Cat Loss Woes Persist

Per the Zacks analyst, Selective Insurance gains from improved pricing and new business growth that in turn has been driving premiums. However, exposure to cat loss inducing earnings volatility ails.

New Downgrades

SYNNEX (SNX) Benefits From Rising Remote Working Tool Demand

Per the Zacks analyst, SYNNEX is benefiting from the COVID-19 pandemic-led work-from-home and online-learning wave, which is spurring demand for offsite-working, and learning hardware and software.

Asset Sales, Low Retail Rent Receipts Concern Vornado (VNO)

Per the Zacks analyst, Vornado's aggressive asset sales might have a near-term dilutive impact on earnings. Also, amid the ongoing retail real estate blues, rent collection woes are likely to linger.

Dull Mineral Nutrition Arm & Forex Woes Ail Phibro (PAHC)

The Zacks analyst is worried about the persistently falling Mineral Nutrition arm's product sales. Unfavorable currency movements are an added headwind.


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
 
Square, Inc. (SQ) : Free Stock Analysis Report
 
GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
 
salesforce.com, inc. (CRM) : Free Stock Analysis Report
 
Blackstone Group IncThe (BX) : Free Stock Analysis Report
 
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
 
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